I did specify “anyone with a minimal understanding of how economic work”. If you don’t understand that inflation is mostly not due to creation of currency, then you don’t understand basic economics. The EU has been creating from 2010 to 2020 absolutely immense amounts of currency with little to no effect on inflation.
Inflation appeared in 2022 as a consequence of bottlenecks in industry and supply, and rising costs of energy, and corporate increasing prices more than inflation to increase profits by bootstrapping to the inflation wave. This is scientific consensus in the field of economics.
The whole neoliberal trope of “creating more money devalues the currency” is patently false if you look at the historical evidence of the last century. Markets don’t automatically say “oh god the central bank created more currency, let’s proportionally rise the prices!”. And currency can be created in such ways that the supply of goods and services increases together with money creation as in, for example, the hiring of public workers. If you hire 1 million unemployed people with newly created money and you put them to work, you’re increasing the supply of goods and services by as much as 1 million workers can produce.
So yeah, the problem is that you don’t have a minimal understanding of economics if you believe that inflation is primarily a monetary issue.
Inflation in Goods and services in the eurozone have increased about 39% since the 2000s
Most of that has been precisely in the latest years were they have been creating so much currency
But yeah keep saying it won’t affect prices and maybe it will become true
The only saving grace is that most of it is in government bonds, not as a circulation. I shudder to think what would happen if the 17 trillions eur inside the ECB find their way out
Or anyone with an ounce of empathy. I’d gladly double my taxes if it meant I didn’t have to watch people literally dig through the trash for food, sleep on sidewalks “illegally”, or die of sepsis because they couldn’t afford to see a doctor in time.
Oh no, I can only take three vacations a year instead of four, boo hoo me.
The right: “but who’s gonna pay for it?!”
Anyone with a minimal understanding of how economics work: “uhhhh… The central bank can literally create dollars at will…”
You do understand that printing money devaluates the worth of everyone elses money correct?
Literally everyone would be paying for it. More than anyone, the poor, as taxes hit them the hardest
I did specify “anyone with a minimal understanding of how economic work”. If you don’t understand that inflation is mostly not due to creation of currency, then you don’t understand basic economics. The EU has been creating from 2010 to 2020 absolutely immense amounts of currency with little to no effect on inflation.
Inflation appeared in 2022 as a consequence of bottlenecks in industry and supply, and rising costs of energy, and corporate increasing prices more than inflation to increase profits by bootstrapping to the inflation wave. This is scientific consensus in the field of economics.
The whole neoliberal trope of “creating more money devalues the currency” is patently false if you look at the historical evidence of the last century. Markets don’t automatically say “oh god the central bank created more currency, let’s proportionally rise the prices!”. And currency can be created in such ways that the supply of goods and services increases together with money creation as in, for example, the hiring of public workers. If you hire 1 million unemployed people with newly created money and you put them to work, you’re increasing the supply of goods and services by as much as 1 million workers can produce.
So yeah, the problem is that you don’t have a minimal understanding of economics if you believe that inflation is primarily a monetary issue.
Inflation in Goods and services in the eurozone have increased about 39% since the 2000s
Most of that has been precisely in the latest years were they have been creating so much currency
But yeah keep saying it won’t affect prices and maybe it will become true
The only saving grace is that most of it is in government bonds, not as a circulation. I shudder to think what would happen if the 17 trillions eur inside the ECB find their way out
Im sorry but feel free to look at the M2 or M3 monetary aggregates for the Eurozone overtime. You may find that you’re absolutely wrong.
Or anyone with an ounce of empathy. I’d gladly double my taxes if it meant I didn’t have to watch people literally dig through the trash for food, sleep on sidewalks “illegally”, or die of sepsis because they couldn’t afford to see a doctor in time.
Oh no, I can only take three vacations a year instead of four, boo hoo me.