How Inflation Confiscates Wealth

Discussion in 'Politics' started by Lovebears65, Mar 19, 2012.

  1. Lovebears65
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    Lovebears65 Gold Member

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  2. bitterlyclingin
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    bitterlyclingin Silver Member

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    Remember the movie "The Graduate"? (With this crew, probably less than 4 to 5 per cent do) In the graduation party scene when the family friend in the person of Mrs Robinsons' husband walks over to the very young Dustin Hoffman and tells him "Plastics, son! Plastics!"
    Well, based on historical precedent, and in a similar conversational vein today, its "Wheelbarrows, son! Wheelbarrows!"
     
  3. Dragon
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    Dragon Senior Member

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    Inflation doesn't confiscate wealth, it transfers it from lenders to borrowers, which is, of course, the real reason why it's disliked in some quarters.

    And people who think we're heading for Weimar Germany inflation can't do math.
     
  4. eflatminor
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    eflatminor Classical Liberal

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    No but false inflation does. When markets would have otherwise produced no inflation, or even deflation, forcing it via central price controls (aka a central bank) is most certainly a confiscation of wealth from those that are not borrowers but are simply trying to pay the bills and survive. Inflation is the most regressive tax of them all.
     
  5. Dragon
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    Dragon Senior Member

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    Markets never produce inflation. Inflation is a monetary phenomenon and consists of a growth of the money supply exceeding the growth in goods and services on the market.

    Markets never produce deflation, either. Deflation is also a monetary phenomenon and consists of a growth of the money supply that is less than the growth in goods and services on the market.

    Markets are, in fact, completely irrelevant to inflation and deflation both, and the fact that you raised the subject as if it were pertinent tells me you don't understand these monetary phenomena very well at all.
     
  6. eflatminor
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    eflatminor Classical Liberal

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  7. Decepticon
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    Decepticon BANNED

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    I find it hilarious that CONZ feel qualified to discuss economics, given the record their agenda has had on the American one.
     
  8. TakeAStepBack
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    TakeAStepBack Gold Member

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    Yes, the 800 billion dollar bail out was a really sound move also. Neither side of the aisle today cares about economics. This is a race to the bottom.
     
  9. eflatminor
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    eflatminor Classical Liberal

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    Of course, it's not conservatives nor progressives that are by default qualified to discuss economics, but those of us that have a lifetime of study and advanced degrees on the subject are indeed qualified. Are you?

    On the other hand, Libertarians have ALWAYS stood against central price controls. Have you?
     
  10. Oldstyle
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    Oldstyle Gold Member

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    You know what's REALLY hilarious, Decepticon? That any progressive would have the stones to come on here and lecture conservatives on economics given the effect that their agenda has had on our economy.

    Larry Summers and Christina Romer didn't run back to the safety of their tenured positions in academia because their progressive economic agenda WORKED...they jumped ship because their policies were such abject failures.

    The truth is your progressive agenda has had this country mired in one of the longest economic downturns in the country's history. It's been so bad...for so long that we've come to look at 8% unemployment and $3.80 gasoline as a good thing. How freakin' sad is that!
     
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