For the first time since February 2022, Core CPI, PCE and PPI inflation are now rising at the same time.
For the first time since February 2022, Core CPI, PCE and PPI inflation are now rising at the same time.
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Okay but I keep being told that wage growth is the only way to deal with the inflation that’s already happened. Even other communists have been telling me “No you definitely don’t want deflation” for reasons I still don’t understand aside from “capitalists are stupid, easily panicked animals” but if wage growth just makes the problem worse what the fuck is there to do besides [REDACTED]
Also I’m still convinced the “problems” with deflation are imaginary and could easily be prevented by just forcing the capitalists to not fuck everything up.
Almost none of the problems that come from deflation actually have a material connection to deflation, it’s almost entirely “But deflation removed the market” which, simply do not allow the market to be spooked.
Wait why is spooked (past simple) cool but removed (3rd person, present simple) isn’t cool? I got reverse sremovedhorped
The way I've always heard it described is that if you are in a deflationary environment, there's no incentive to spend your money today when it will be worth more tomorrow, so it has a dampening effect on consumer spending and investment which is bad for the economy.
The only actual serious way of dealing with inflation in the long term is price controls, which westerners have been conditioned to think of as awful.
Taxes probably... or a whole lotta [redacted] of business owners involved in the necessities of life having been price gouging since COVID.