Comrade John -- A short answer (IMHO of course) follows your question On Thu, Feb 11, 2021 at 7:26 PM John Reimann <[email protected]> wrote:
> > https://www.wsj.com/articles/what-inflation-debates-miss-inflation-11613065779?mod=hp_opin_pos_3 > > Now, if Biden's stimulus plan goes through as planned, some of that money > will go to workers, who will use it to buy consumer goods, meaning > youknowwhat prices will rise. Comments? > > ME: Not so sure. Consumer prices will only go up if companies > supplying consumer goods bump up against capacity --- otherwise, > competition will keep prices from rising faster than wages --- The > important point of the article you quote is that the financial speculation > which produces wide swings in financial assets and bubbles (the stock > market is in one now but it won't deflate until the "real" economy becomes > more profitable) only affects the real incomes of a quite small proportion > of the population (I would guess the top 10%). Now of course those people > have an outsized influence on public opinion (in large part because the > people who give us the "news" are all in the top 10% or more) but I think > the majority of the people are getting wise to the fact that Walls Street > ain't Main Street --- Thus, concerns about stock market overvaluation are > not shared by most people ---Meanwhile, consumer price inflation has shown > NO SIGNS of increasing --- and that was even true during the period before > the pandemic set in when unemployment was quite low. > Short summary -- Summers is full of shit -- and we're lucky there was enough pressure to keep Obama from appointing him to Chair the Fed. (for more details on WHY Summers is full of shit, check out Dean Baker's recent blog about Summers' "inflation fear" ...) [Mike Meeropol] -=-=-=-=-=-=-=-=-=-=-=- Groups.io Links: You receive all messages sent to this group. View/Reply Online (#6323): https://groups.io/g/marxmail/message/6323 Mute This Topic: https://groups.io/mt/80572959/21656 -=-=- POSTING RULES & NOTES #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. -=-=- Group Owner: [email protected] Unsubscribe: https://groups.io/g/marxmail/leave/8674936/1316126222/xyzzy [[email protected]] -=-=-=-=-=-=-=-=-=-=-=-
