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Warpy

(113,979 posts)
1. Higher interest rates punishing working people
Thu Jun 15, 2023, 02:27 PM
Jun 2023

because of the rich man's stupidity that says wages drive inflation, they learned that in Econ 101 with that widget factory.

It's not true, of course, higher wages mean inflation has already occurred. It's not a case of too much moey chasing too few goods these days, it's more a case of near monopolies seeing an opportunity for naked greed, layered on the shocks of a pandemic, two wars ending, and an idiot in office who printed trillions of dollars, some of which weren't stolen and poured into the stock market. All of those exert infationary pressure. Those widget factory workers getting a few cents more an hour are just trying to keep up. The factory owner has been hiking the widget price all along to match the inflationary rate and has been making a killing. The last thing he wants to do is pass it along to workers who are now living on beans and rice. They're living, aren't they?

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