Literally, cost push inflation was just explained to you. In this case it is wage costs that increase, causing businesses to increase costs to adjust, causing increase in inflation which your wage cannot afford.
All businesses exist for profit. There is no other reason why they exist. But this does not mean all businesses exist for insane profit. Demand for higher wages because of record profits of corporations could see small businesses fail as they lose business from raising prices to stay on top of the new costs to remain operating,. This would ironically make the situation of the rich getting richer and poor getting poorer even worse, making your current situation retrospectively seem desirable.
There is much more to economics and inflation than “You make more; I make more.”
Before screaming for more wage, you’d need to understand if your employer, your source of income, can actually afford it. If they can and aren’t doing their bit to keep the economy healthy, then by all means, unionise.
The article you referenced contains the following excerpts:
The existence of cost-push inflation is disputed. Dallas S. Batten described it as a myth…
Milton Friedman criticised the concept of cost-push inflation… Friedman wrote, “the inflation arises from one and only one reason: an increase in a quantity of money.”
Yeah. That’s why it’s a concept, not a rule. Economics is organic. There are many concepts that are applicable at times and not at others. Anyone that tries to conservatively apply a concept as a rule to something as organic as economics would be a moron.
Supply and demand; this much is true. The rest is conceptual. Inflation itself is a concept that can be argued if applied like it’s a rule. It has many variables, but in most cases, cost and demand pushes are the concepts that can explain or understand different parts of it.
Of course, if greed is the main drive, neither cost or demand push concepts apply and go out the window.
The term used to describe cost-push inflation was not rule or concept, but myth.
Ultimately, as conceded by Friedman, hardly an advocate for workers rights, average prices ultimately reflect simply the relation between total real wealth and supply of money.
Well, since you read so many details of someone claiming it as a myth in the article, you’d have also astutely read the parts where real world examples were provided of it happening.
I think you’d find that someone claiming a concept as a myth is more focused on academic definement.
The Big Bang Theory is a theory, it does not make it a myth, though many would claim it is. Do you want to highlight them too? We run with it based on real world evidence supporting the concept, but it’s not a rule.
Edit: Also, I’m not linking it to worker’s rights. I don’t know why you are. Simply providing further explaination of how workers costs can cause inflation like any other cost to businesses, be that oil, infrastructure, tax, etc. This is why we protect small and medium sized businesses as much as workers. Bad things happen if either are in financial dire.
A commonly-held but false belief, a common misconception; a fictitious or imaginary person or thing; a popular conception about a real person or event which exaggerates or idealizes reality.
I’d point out that I provided a concept used to explain things we’ve observed in economics for a long time.
You are challenging this as though it’s my opinion.
I think you, and the points you are pulling from the information—I provided to you, none the less—are seeing this as a binary drive of economic inflation as though “it is” or “it is not”, when the whole concept works as, “it is here, it is not here, it is of influence here, it is something else here”. i.e. a contributing factor that has scalable influence in a bigger picture.
Also, just because my example of a theory so happened to be a “scientific” theory, you didn’t need to go barreling down that path all on your own. I don’t see what supplying the definition of scientific theories has to do with anything here, but 👍
That’s definitely not true at all, but even if it was inflation is going up anyways without wage increases.
Yes, it is definitely true.
Literally, cost push inflation was just explained to you. In this case it is wage costs that increase, causing businesses to increase costs to adjust, causing increase in inflation which your wage cannot afford.
All businesses exist for profit. There is no other reason why they exist. But this does not mean all businesses exist for insane profit. Demand for higher wages because of record profits of corporations could see small businesses fail as they lose business from raising prices to stay on top of the new costs to remain operating,. This would ironically make the situation of the rich getting richer and poor getting poorer even worse, making your current situation retrospectively seem desirable.
There is much more to economics and inflation than “You make more; I make more.”
Before screaming for more wage, you’d need to understand if your employer, your source of income, can actually afford it. If they can and aren’t doing their bit to keep the economy healthy, then by all means, unionise.
The article you referenced contains the following excerpts:
Yeah. That’s why it’s a concept, not a rule. Economics is organic. There are many concepts that are applicable at times and not at others. Anyone that tries to conservatively apply a concept as a rule to something as organic as economics would be a moron.
Supply and demand; this much is true. The rest is conceptual. Inflation itself is a concept that can be argued if applied like it’s a rule. It has many variables, but in most cases, cost and demand pushes are the concepts that can explain or understand different parts of it.
Of course, if greed is the main drive, neither cost or demand push concepts apply and go out the window.
The term used to describe cost-push inflation was not rule or concept, but myth.
Ultimately, as conceded by Friedman, hardly an advocate for workers rights, average prices ultimately reflect simply the relation between total real wealth and supply of money.
Well, since you read so many details of someone claiming it as a myth in the article, you’d have also astutely read the parts where real world examples were provided of it happening.
I think you’d find that someone claiming a concept as a myth is more focused on academic definement.
The Big Bang Theory is a theory, it does not make it a myth, though many would claim it is. Do you want to highlight them too? We run with it based on real world evidence supporting the concept, but it’s not a rule.
Edit: Also, I’m not linking it to worker’s rights. I don’t know why you are. Simply providing further explaination of how workers costs can cause inflation like any other cost to businesses, be that oil, infrastructure, tax, etc. This is why we protect small and medium sized businesses as much as workers. Bad things happen if either are in financial dire.
I read the article.
The discussion is descending even below the level of pointlessness.
You are not even understanding basic terms.
A scientific theory is given as…
In turn, a myth is given as…
The feeling is mutual.
I’d point out that I provided a concept used to explain things we’ve observed in economics for a long time.
You are challenging this as though it’s my opinion.
I think you, and the points you are pulling from the information—I provided to you, none the less—are seeing this as a binary drive of economic inflation as though “it is” or “it is not”, when the whole concept works as, “it is here, it is not here, it is of influence here, it is something else here”. i.e. a contributing factor that has scalable influence in a bigger picture.
Also, just because my example of a theory so happened to be a “scientific” theory, you didn’t need to go barreling down that path all on your own. I don’t see what supplying the definition of scientific theories has to do with anything here, but 👍
You are being incredibly dishonest, given the context.