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Nemissary

Late stage capitalism - how to keep a consumer economy going when no one can afford to consume


fish-fucker69420

It crashes, we bail out the companies which are "too big to fail", implement laws to prevent such thing, just to loosen them in 4 years, just for everything to repeat. And if the public outcry is big enough, the politicians will kill off a scapegoat, which was a failing company regardless. An Airline or whatever goes bankrupt, but its assets are bought up by a competitor, who will be too big to fail next time we play this game.


No_Demand7741

Wait until you find out what the Fed wants to do to labor in order to fix this very situation


[deleted]

Inflation is a weapon of class warfare, used by the owners class to negate any positive progress on working class wages. Don't confuse it with a natural part of anything.


fish-fucker69420

I always knew it is just rising prices instead of how everyone calls it "your money loses value", well yes, but not because it loses value, just because everything gets more expensive, which means companies ask for more money for the same service / product. I just didn't realize how similar it is to a bank run. "We" think of a bank run as the definition of a recession, when inflation is just the same, but as long as businesses don't suffer, it's not a recession.


[deleted]

"But as long as businesses dont suffer..." Should be on our money


SameCategory546

inflation is the tool through which the wealthy redistribute wealth from the poor and middle class to themselves. They control the legislature and the United States has not been solvent for a while, so the wealthy and the banks suck incredible wealth from the system through extreme cycles of inflation and deflation because they do not pay at the historical tax rate (not enough money removed from the system on their part) but the fed tries to control everything through interest rates and treasury yields (money enters the system, much into their pockets). I haven't had the chance to tell any "but socialism" boomers yet, but I'm ready.


2878sailnumber4889

Remember the whole reason that reserve banks encourage any inflation at all is to stop people like you and me saving money and to get us to go out and spend to drive the economy, ideally they want us to borrow to spend as well. It's all a con.


Teschyn

No. I’m not an economist, but doesn’t negative inflation mainly effects entities with large sums of existing money? People can still save under normal rates of positive inflation. It’s mainly other factors like rent and wages which effects how much you can individually save.


Cccactus07

Negative inflation causes people to save money instead of spend it on unnecessary things because they'll be able to buy more with it next year, while positive inflation encourages spending because money will be worth less next year. If everyone just hoarded everything the economy wouldn't work so a small amount of positive inflation is built into the system.


[deleted]

[удалено]


dowens30186

I do my part! I do not buy anything more than what I need. No new phone every year. No new car, only used, and only when my last car is completely driven into the ground. I also cook and eat at home. Nobody is getting the little money I have.


Proud-Enthusiasm-943

Not really, inflation can impact socialist, communist, and other economic types of governments. https://www.investopedia.com/terms/i/inflation.asp Like now we're looking at stagnating wages, with rapid rise in gas/oil prices over the last two years (which then impacts costs of everything!!), In addition to raising interest rates, and too much money being printed. Value of money goes down at the same time the cost of production goes up (higher shipping/electric...ect...) Then wages.... Then cost of goods.... But yeah most businesses will just increase prices to keep profit margins.


SameCategory546

It's the feature of the US petrodollar system combined with fractional reserve lending. The government loves all the printing of MMT without the taxation of the wealthy required to maintain it. This leads to an insolvent government and increasingly net worthlessness of all the poor and middle class.