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Joined 2 years ago
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Cake day: July 4th, 2023

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  • What should he be doing instead? If he somehow had the legal authority to make companies cut production in the US, gas prices would increase drastically, the price of everything made with oil or transported with oil (which is basically everything) would spike, and consumption wouldn’t even go down much.

    What needs to happen is to have an alternative to oil first, and Biden’s infrastructure bill was a big step in that direction, at least compared to every other president before him.





  • The idea is that deflation affects the investor class. Assuming a “healthy” 3% inflation rate, the value of your savings decreases by 3% per year. That means you lose money if you can’t invest in something earning more than 3%. Traditionally interest rates have been around 0%, which means bonds and savings accounts also pay 0%. So, your only options to not lose the value of your savings is to invest in the stock market, risky businesses, or real estate.

    As a middle class person that means that it mostly affects my 401k, but for millionaires and billionaires, deflation means that they would sit on their hoard instead of investing it. Traditionally that means no funding for new businesses, inventions and ideas, and that’s also why the investor class pays much lower taxes than the working classes.

    But nowadays “investment” seems to mostly be buying good companies and enshitifying them or bribing politicians, so maybe it would be better if we encouraged the rich to sit on their money instead of using it to make society worse.