Inflation vs. Unemployment

[Derek]

The market takes care of unemployment. Inflation is determined by alot of things; too high wages for one lead to too high prices. This deflates the value of the dollar and inflates the price of goods. Low taxes and low wages are the best way to increase the value of the dollar.  You will have less money in the system but people will be able to afford more in the long run. Unemployment is caused by wages being too high as well because the money that is lost due to wage increases has to be made up for by laying off workers. Now they are dependent on the government for money and can't find work. The bottom line is that politicians in Washington for the most part aren't capable of understanding the free market because if they did then they would be making a living in the private sector rather than running for office. Unemployment can be helped with tax cuts but it's profits that must result from cutting taxes that really allows jobs to be created. This is why jobs are always the last thing to come in a recession recovery.

[Derek]

I agree with both of the last 2 on some level. Inflation on a VERY small scale can show product quality but you don't want it across the board. This is only semi on topic, but notice how there is never a recession in Washington D.C. meaning the government never has a recession.

[Derek]

The market takes care of unemployment. Inflation is determined by alot of things; too high wages for one lead to too high prices. This deflates the value of the dollar and inflates the price of goods. Low taxes and low wages are the best way to increase the value of the dollar.  You will have less money in the system but people will be able to afford more in the long run. Unemployment is caused by wages being too high as well because the money that is lost due to wage increases has to be made up for by laying off workers. Now they are dependent on the government for money and can't find work. The bottom line is that politicians in Washington for the most part aren't capable of understanding the free market because if they did then they would be making a living in the private sector rather than running for office. Unemployment can be helped with tax cuts but it's profits that must result from cutting taxes that really allows jobs to be created. This is why jobs are always the last thing to come in a recession recovery.

Inflation helps people pay off debt, and helps to build a new economic growth, and is just one of the uncomterble things that is necessary for growth. In short at most inflation is only a necessary evil, but to think any less is stupid.

// This deflates the value of the dollar and inflates the price of goods.//
What do you think of this economic concept: Time value of money? A dollar is worth more today than it is tomorrow because of this very concept. Finally the value of the dollar is effected more by our balance of trade, and the only reason the dollar is low is because we are importing more than we export, and thus the value of the dollar loses its exchange value. This could continue forever or as long as we like, and can be changed whenever we want. This is because if policy makers want a stronger dollar we could simply create or disolve a trade deal like we did in the late 70's and early 80's under reagan to make the dollar stronger.  Finally lets say that the united states continues to pursue its weak dollar trade policy does that mean the currency will crash? not exactly and this is because our dollar can always be exchanged for T-Bills, and vice versus.  Thus our dollar is safe, but importantly is fixed to the value of our government, the most powerful, and greatest government this world has ever known. America will continue to dominate and destroy all who opposes it, by simply outlasting its detractors.

Now go out there and read a book on economics, and than come back to me with what you have learned. I suggest you read some nobel prize winning essays.

It would help people pay off debt as long as their interest rates haven't gone up and as long as their making more money. That part is true. However, either way you go in a circle with the wages and inflation. We can raise wages which causes prices to go up and deflates the dollar. Or we can decrease wages which causes prices to go down and have a stronger dollar. I prefer the latter. However, the difference is that with higher wages you end up with higher unemployment.

[Derek]

The market takes care of unemployment. Inflation is determined by alot of things; too high wages for one lead to too high prices. This deflates the value of the dollar and inflates the price of goods. Low taxes and low wages are the best way to increase the value of the dollar.  You will have less money in the system but people will be able to afford more in the long run. Unemployment is caused by wages being too high as well because the money that is lost due to wage increases has to be made up for by laying off workers. Now they are dependent on the government for money and can't find work. The bottom line is that politicians in Washington for the most part aren't capable of understanding the free market because if they did then they would be making a living in the private sector rather than running for office. Unemployment can be helped with tax cuts but it's profits that must result from cutting taxes that really allows jobs to be created. This is why jobs are always the last thing to come in a recession recovery.

Inflation helps people pay off debt, and helps to build a new economic growth, and is just one of the uncomterble things that is necessary for growth. In short at most inflation is only a necessary evil, but to think any less is stupid.

// This deflates the value of the dollar and inflates the price of goods.//
What do you think of this economic concept: Time value of money? A dollar is worth more today than it is tomorrow because of this very concept. Finally the value of the dollar is effected more by our balance of trade, and the only reason the dollar is low is because we are importing more than we export, and thus the value of the dollar loses its exchange value. This could continue forever or as long as we like, and can be changed whenever we want. This is because if policy makers want a stronger dollar we could simply create or disolve a trade deal like we did in the late 70's and early 80's under reagan to make the dollar stronger.  Finally lets say that the united states continues to pursue its weak dollar trade policy does that mean the currency will crash? not exactly and this is because our dollar can always be exchanged for T-Bills, and vice versus.  Thus our dollar is safe, but importantly is fixed to the value of our government, the most powerful, and greatest government this world has ever known. America will continue to dominate and destroy all who opposes it, by simply outlasting its detractors.

Now go out there and read a book on economics, and than come back to me with what you have learned. I suggest you read some nobel prize winning essays.

It would help people pay off debt as long as their interest rates haven't gone up and as long as their making more money. That part is true. However, either way you go in a circle with the wages and inflation. We can raise wages which causes prices to go up and deflates the dollar. Or we can decrease wages which causes prices to go down and have a stronger dollar. I prefer the latter. However, the difference is that with higher wages you end up with higher unemployment.

so you are worried more about wage inflation? me too, but I think wage inflation may just lead to a higher natural unemployment rate for years to come, and thus our ultimate obstacle will be sticky wages. Than again prices are normally sticker on the way downward than up...I think?

Yes I'm worried about wage inflation. Alot of the minimum wage laws are political promises made to get politicians reelected. If more people worked for less money then the unemployment rate would go down. Only then will you see a decrease in overall prices.

[Derek]

The market takes care of unemployment. Inflation is determined by alot of things; too high wages for one lead to too high prices. This deflates the value of the dollar and inflates the price of goods. Low taxes and low wages are the best way to increase the value of the dollar.  You will have less money in the system but people will be able to afford more in the long run. Unemployment is caused by wages being too high as well because the money that is lost due to wage increases has to be made up for by laying off workers. Now they are dependent on the government for money and can't find work. The bottom line is that politicians in Washington for the most part aren't capable of understanding the free market because if they did then they would be making a living in the private sector rather than running for office. Unemployment can be helped with tax cuts but it's profits that must result from cutting taxes that really allows jobs to be created. This is why jobs are always the last thing to come in a recession recovery.

Inflation helps people pay off debt, and helps to build a new economic growth, and is just one of the uncomterble things that is necessary for growth. In short at most inflation is only a necessary evil, but to think any less is stupid.

// This deflates the value of the dollar and inflates the price of goods.//
What do you think of this economic concept: Time value of money? A dollar is worth more today than it is tomorrow because of this very concept. Finally the value of the dollar is effected more by our balance of trade, and the only reason the dollar is low is because we are importing more than we export, and thus the value of the dollar loses its exchange value. This could continue forever or as long as we like, and can be changed whenever we want. This is because if policy makers want a stronger dollar we could simply create or disolve a trade deal like we did in the late 70's and early 80's under reagan to make the dollar stronger.  Finally lets say that the united states continues to pursue its weak dollar trade policy does that mean the currency will crash? not exactly and this is because our dollar can always be exchanged for T-Bills, and vice versus.  Thus our dollar is safe, but importantly is fixed to the value of our government, the most powerful, and greatest government this world has ever known. America will continue to dominate and destroy all who opposes it, by simply outlasting its detractors.

Now go out there and read a book on economics, and than come back to me with what you have learned. I suggest you read some nobel prize winning essays.

It would help people pay off debt as long as their interest rates haven't gone up and as long as their making more money. That part is true. However, either way you go in a circle with the wages and inflation. We can raise wages which causes prices to go up and deflates the dollar. Or we can decrease wages which causes prices to go down and have a stronger dollar. I prefer the latter. However, the difference is that with higher wages you end up with higher unemployment.

so you are worried more about wage inflation? me too, but I think wage inflation may just lead to a higher natural unemployment rate for years to come, and thus our ultimate obstacle will be sticky wages. Than again prices are normally sticker on the way downward than up...I think?

Yes I'm worried about wage inflation. Alot of the minimum wage laws are political promises made to get politicians reelected. If more people worked for less money then the unemployment rate would go down. Only then will you see a decrease in overall prices.

minimum wages do not have an effect like that on all real wages, and the effect is nill to none. What i fear is that we will not generate enough growth, and inflation for our market to keep up with the population. Thus leading to a situation where the natural unemployment rate is 7%,prices are too low, and beggar thy neighber policy.

Ah yes the more people you have the higher unemployment will go unless of course you keep adding jobs.

[Derek]

A reasonable inflation isn't necessary a bad thing. Unemployment is the main problem.

Define "reasonable."

2-3% inflation is typically regarded as a sign of a healthy economy as the price level is increasing due to increasing consumption spending, which increases aggregate demand and therefore GDP.

Exactly. As long as consumer inflation is below 3 percent, there is room for expansionary monetary policy.

Except inflation at any rate is theft.

The dollar has naturally declined over time because when you have a growing population you have to increase the amount of circulating money or else the economy doesn't grow with the population. Hence why if we were to return to the Gold standard wages would fall to $2.50 an hour and Unemployment would rise to 25%. Because there isn't enough gold to sustain the economy with modern population levels. Then if you follow free Market doctrines, those $2.50 would fall to bring down the 25% unemployement. It would turn the US into an economic backwater while China an the EU soar far above us.

Its also ironic that in the late 1800's deflation was considered theft on the part of the rich bankers, according to the inflationist bimetalism supporters. Some of the anti-semmetic inflationists beleived that there was a conspiracy to contract the money supply to increase the proportion of the money in the hands of the "Jewish" bankers.

Whenever someone has based bankers in such fashion, usually they haven't the slightest idea of what is really going on.

Lock this thread.

Why?

Right that's the problem with a high population. You must add jobs and wealth.  If you want to create wealth, follow the economy of Texas because it's doing better than other states.

[Derek]

The answer is simple.  Control inflation so the cost of living is low, thus, making it easier for the state to afford supporting a welfare system for those who are unemployed.

Conservatives can enjoy their strong dollar and liberals can enjoy helping the poor.

That's what I've been saying all along. People have been twisting my words.