LordMagnusKain
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- May 10, 2001
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Originally posted by: dirtboy
Originally posted by: LordMagnusKain
but we should always compare this with income as compared to inflation.
What's with the sudden talk of inflation? Inflation has been near zero. Is this another scare tactic or are you just simply stating that if inflation rises, incomes need to rise with it?
That it's good for the economy to have pay raise at the rate of inflation, and good for people trying to save money to have low inflation;
and we should all worry about inflation as we've got political demands for over-employment of the population, combined with incredibly low interest rates, and exorbitant federal deficits.
low un-employment, under 6% being historically low.
low interest rates, increasing the amount of money and speed of money in the economy.
poor fiscal discipline by the government, so we have even more money added to the economy.
with so many dollars in the economy the amount a dollar will buy will have to fall if we don't get much higher production at a much lower cost... of course the producer price index was through the roof recently, which is even more dangerous as it indicates increases in prices must follow.
