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  • Inflation is ANY increase in the money supply.

    DUMP USURY BANKING

    DUMP JEWISH MEDIA MONOPOLIES

    DUMP ISRAEL

  • Productivity has risen corporations are raking in more profits than ever,yet wages have stagnated and fallen in real terms. I guess a rising tide lifts all yachts.

  • Do higher wages cause inflation?

    NO! inflation the central bank prints causes inflation that leads to higher wages set by the government.

  • @wtfbroskie nice comment! inflation is expansion of the money supply. wages have nothing to do with currency issuance.

    "inflation is businesses raising prices" - so inaccurate. almost clown like

  • @wtfbroskie No,inflation is caused by too much money chasing too few goods and that can be caused by a number of different factors.

    Central banks do not cause inflation.

    Try auditing a macroeconomics course at your local community college after you graduate from Junior High.

  • Many people do not want theyre TV repaire because the cost of repairing the TV are already the same prize of buying a new TV....Its not a real news its just a desgrace news.......no real debate or fact even a 7 grader can do better debate than this..

  • the increase of the money supply increases inflation not wages!

  • Higher wages, lower wages, inflation, it will all balance out in a nation.

    The problem with a wage increase or decrease is one nations relative competitiveness to the rest of the world. Its like taxes. If I lower taxes, Ill get more companies to come here, or if I increase the opposite effect. Wages have stayed the same and productivity increased to balance out US competitiveness in the world.

  • i'm glad many of you see through this clown. jay, don't bring this guy back to your usually respectable show.

  • Walmart's profits rose this year, even though their sales went down. Something's inflated, and it sure aint wages.

    Kudlow and Co. were crowing about the rise in billionaires yesterday. "We need more rich! They provide capital!"

    I guess a $5.00 raise disrupts capitalism, while a $100,000,000 one is good for all. This explains the marvel that is the Mexican economy. The richest man in the world, and the borders bleeding impoverished peasants.

    Good times.

  • How could have Walmart's profits risen this year when this year isn't even over yet.

    The profit reports are done quarterly, and Walmart's sales and profits were up from last quarter. Which is why their stock has been steadily increasing.

    And I sure as hell wouldn't use Mexico as an example. They have one of the most socialist governments next to Cuba and Venezuela.

  • The sales were down, the profits were up. It was part of an overview of business ups and downs. As inept and biased the broadcasters may be, there was no seeming agenda beyond blue-sky boosterism.

    Socialism has many forms and degrees of control. Mexico's is an attempt to prop up a feudal level of inequality. Whatever you say about any country south of the border, the Libertarian Paradise of Haiti makes them all look good.

  • The true inflation rate is 11%.

  • Inflation is governments printing money not businesses raising real prices. The interviewee does not know what he is talking about. Just look at a chart of any commodity priced in gold oz instead of US dollars or another unbaked paper currency.

  • How stupid can you get, Jay? Do you really think the opinions of people like Pollin have any validity? He's and idiot, and promoting idiots like him to sell your progressive crap is just as idiotic.

  • Inflation is the expansion of the money supply.

    Price increase is the result of inflation.

    TRNN needs to get someone on here with an Econ back-ground.

  • @Paetaor It is NOT just the expansion of the money supply. Yes, printing money can increase inflation, but inflation can also be a reflection of the "velocity" of the money supply, among other things.

  • Inflation or deflation is the change in purchasing power.

    And youre correct, there are many things that can cause inflation but none are absolute.

    Even speculation can cause inflation, and this doesn't require an increase in the money supply.

  • @Spectre11B Thank you. Unfortunately, even the economics behind inflation have been politicized. You'd think by some accounts that it was caused solely by monetary policy. Go figure. : \

  • "For many years, the word inflation was

    not a statement about prices but a condition

    of paper money—a specific description

    of a monetary policy."  - From the Cleveland Fed

    The word slowly changed since the installment of the fed and they gloss over why.

    3%+ per year inflation virtually didn't exist before then. So when prices went up for reasons other than monetary policy, they always went back down.

    But when those factors mixed with fed 3%+ increases it muddied things.

  • All those other factors you speak of eventually have prices go down as well. It's only monetary inflation where prices go up 3% a year or more and stay there. Pick a basket of any 5 commodities and feel free to measure the effects of anything from speculation to market cornering over a 20 year period. What comes up goes down. The price of those things in the basket of commodities will be overall stable.

    The price of those things in currency will rise.

    Go ahead and try yourself in excel.

  • When ceo's take the raises that the production workers should be getting The ratio of income to populace just decreased.And when the corp's raise to compensate the ceo's wages because they say we can make the same profit margin if only They get the raise because it will be easier to cut one's pay than many in a pay crunch.The company save in retirement to the many and can pay the one a large seperation check.And the corp's still saved.But the workers are left making less because of necessities.

  • This interview is a joke. If you increase wages, you will have a decrease in your profit margin. But if government mandates higher wages, it leads to JOB LOSS, or slowed growth. If you dont believe me, google samoa, the people living in samoa are out of jobs b/c of higher minimum wage, the two tuna producers are moving out of the island b/c of too high labor cost due to higher minimum wage.

  • actually the systemic effect of wage hikes is not lowered employment (some places have higher employment as a result, some lower), the effect is a change in the types of jobs and on-the-job training/benefits companies offer. you can't look at one isolated place like samoa to judge the effect on america.

  • IMO if the minimum wage was raised to $10 an hour, it wouldn't cause inflation (or a tiny bit of it that would be well worth the trade off)

    However raising the minimum wage to 20$ an hour will screw inflation up and is not realistic.

  • Workers wages have been stagnant for the past 25 years. Housing prices have increased fourfold. What is inflation, anyway?

  • Inflation is the value of a dollar going down mainly due to law of supply and demand.

  • Look up:The Creature From Jekyll Island.

  • ALMOST doubled, not MORE THAN doubled!:(

  • This guy is an idiot.

    Because a worker is more productive, doesn't mean he is working harder. In fact, innovation is the leading cause of higher productivity.

    Makes me wonder if either of these two yahoos have ever held a real job.

  • Do you have any proof, or did you just pull that out of your ass? I'm inclined to believe the latter.

    Besides, that's irrelevant. Productivity is up, that is what matters.

  • You need proof, then get out from under your rock.

    Your post is irrelevant.

  • I feel like I'm getting programed with socialism

  • Then go get programmed with capitalist apologetics.

  • To troubleshoot a system one must be able to understand how the system works. Anyone who knows how money comes into existence knows that inflation is built into the money creation process because the money to pay back interest payments is never created and therefore not in the money supply. This means that to pay back the interest payments on yesterdays loans, today's loans must be bigger and more common than yesterdays, otherwise the money to pay for the previous loan's interest wont exist.

  • Wow, that was two people, neither of whom understand economics, discussing a straw man argument against bigger government to the rescue. It would have been a complete waste of time if it didn't serve to demonstrate that this channel is pseudo intellectual garbage.

    Stop characterizing "inflation" as rising consumer prices. Inflation is a monetary phenomenon, rising consumer prices are a possible symptom of said phenomenon. You might as well be a misleading MSM sound byte show.

  • Inflation is caused by the fact that only the money to pay the principle of every loan is ever created. The money to pay the interest payment on any loan must be obtained though an even bigger loan being made in the future. That is why spending/ lending must always increase at an ever faster rate. Can you say Ponzi?

  • if you want things put in perspective take a look at what this economist Peter Schiff has to say about in higher wages.

    watch?v=_LaPGIIAyk4

  • Rather then a capitol based economy how about a thermal dynamic and a land stewardship based economic model? Each citizen would have a set of defined shares of land in each of the major ecological recourses. Because all recourses are in personal ownership and each citizen gains wealth from their own share set every citizen has an economic interest in the long term stewardship of all natural resources and economic security of that right to the wealth generated.

  • Um... Inflation has nothing to do with wages, or what this guy said "what business's charge". Inflation is an increase in the money supply, nothing more... nothing less.

  • arrogant and ignorant you must live a blissful life, watch this if you want your bubble burst and a welcome into reality.

    >>> watch?v=_LaPGIIAyk4

  • Sorry dude but he is right. Inflation is simply inflating the money supply. Wages and prices go up and down with supply and demand and has nothing to do with debasing the currency by printing more money.

  • we NEED you Che G.

  • Hear hear for what Prof. Robert Pollin said! 5*****

  • in gold we trust fuck the FED

  • Lately, prices are through the roof while jobs are being lost. NOT WAGES LOWERED, but jobs cut altogether. Basically, these companies see that jobs are being lost, so they raised the price to try to build up as much profit as possible before everyone loses their job and has no money to pour into these companies for the over priced product. LAME and STUPID.

  • higher government worker wages = higher taxes for all and higher inflation. Why?? because higher taxes are needed to pay the gov"t worker higher wage thus the private sector wage stays the same but gets taxed higher. this leads to higher prices because the private sector worker has to make up the ground lost.

  • @murraycg69 hmm depends, if the salary given in the public sector achieves a counter cyclic push...then it could push the private sector back to a healthy production level..then more people start working again....and more taxes are being taken in - without raising them

  • Yes its much better to let the taxes go over to big banks and corporations, instead of a diversified pool of citizens.

  • right on, ( robtul12). it's a copout. nitpicking over some bullshit that's null and void. living wage no matter what. we need to be able to fucking afford to live. this asshole can talk about why till he's dead. discussions about WHY we don't have a decent upstanding wage system have been going for...how many years, now?

  • If it does, I guess we should reduce the wages of millionairs and billionairs for starters.

  • wouldn't matter. millionares earn a living mainly with entertainment in this country. the banks toying around with how much money is in circulation and how much they can randomly steal is what is messing us up. the inflation will come when other countries stop buying our debts like they already have and now we are just waiting. either way, don't blame shaq or uh payton manning, your culprits people like george soros, and the rockerfellers. banksters from the beginning and rotten as they come

  • Inequality creates inflation and you can see this in any "globalized" city whether its London or New York or Moscow. If you have a relatively small number of super-affluent people living in a city the cost of living goes through the roof - why - because the super-affluent have super purchasing power and the market adjusts itself according to that power. Hence if you want cheap stuff in a place like Moscow you go to an "unofficial" outdoor market, not a shopping mall!

  • How could more wages possibly be inflationary in the current situation. Inflation results when lots of money are chasing too few resources. In the current climate there is such a surplus of everything. At the stores things literally fall off the shelves. THere are so many vacant housing units. Too much of everything for people to buy. A general shortage of purchasing power nowhere near too much purchasing power. We have so far to go for demand to catch up to supply.

  • cost push inflation;

    companies, government, corporations get hit with higher costs(oil, energy, transportation, metals, medical, insurance etc), so they "push" these costs into prices-or taxes that consumers/citizens pay.

    demand pull inflation;

    people are making money in a country, so suppliers (businesses, factories, farmers, oil, metals, transportation, utilities,) say oh ya, we can raise prices due to all this higher demand

    continued;

  • @cool70200

    corruption inflation;

    those who engineer or twist sentiments to create or augment their markets, ex oil traders using china's olympics to push oil up to $148 a barrel.

    or greenhouse ceo's who use global warming to raise the price of their products ->fertilizers, agriculture, alternative fuels

    and also central banks who lower interest rates (if the economy is a major importer)

  • What the gov't is saying is, the people caused the recession, and the gov't is going to get us out of it, not the other way around.

  • Money is an abstract agreement - ink and paper - scarcely more than art - If you can justify flushing children and the potential promise for humanity they represent, down the crapper, in the name of some lofty notions, regarding economics and "liberty," you are a vile fanatic. Our agreements are not abstract. Our mission is to alleviate human suffering, save the biosphere, and create a sustainable social model for our progeny in eternity. Fanatics don't want to be inconvenienced.

  • Collective bargaining is an essential element to "free enterprise." Inflation is driven by corporate greed.

    Collusion between government and corporations to create monopolies, hyper regulate the "little guy" while subsidizing the "fat cats"... this is the problem - whatever it is, it isn't free enterprise.

  • Laissez Faire proponents, economic Darwinists, Ayn Rand philosophers... all, ultimately serve one master... they are for preserving the status quo, and assuring socio-economic stasis - regardless of their protestations to the contrary - Its a bullshit theory, that's been proven false, repeatedly

    Property and power acquired in a rigged, corrupt system are not sacrosanct symbols of liberty

  • This guy is an fool inflation is not the price of goods going up its the value of your money being destroyed by your government.

    its real easy to figure it out. if i go to the store a buy a gallon of milk for $3 dollars and the next week its $4 dollars the price of producing that gallon of milk did not go up by a dollar.its the value of the money I'm paying with that went down and now i must pay more to make up the difference in value.

  • You should have Thought alittle Harder

    There was inflation long before there was Government backed "money"

    There are several things that can induce inflationary pressure, and yes if the Government regulates the money supply they can cause inflation. But its not the only thing.

  • Inflation IS the increase in the supply of money. Rising prices are simply a symptom of inflation.

    Government backed money goes back to B.C. times, FYI. There are also more ways to increase the supply of money than by fiat currency.

  • "Inflation IS the increase in the supply of money'

    No thats not the definition, Inflation very simply is a decline in the purchasing power of your money or to put another way, too much capital chasing too few goods.

    this can be caused by increasing the amount of capital disproportionally to the amount of goods in the system (as you say)

    Or by decreasing the amount of good in the system.

    Government is my no means the only source of REAL inflation.

  • @blingbling65943 According to the Austrian school of economics "inflation IS the increase in the" supply of money. Regardless, my macro-econ book describes inflation as the increase in prices DUE TO THE INCREASE of the money supply.

    As far as our economic system is concerned, the Federal Reserve is the SOLE source of inflation.

  • I know what Austrian economics says about inflation, and thats why i said they were wrong.

    Really wrong.

  • @Fighting89Back

    "According to the Austrian school of economics"

    hahahahahahahahehehehahahahhfh­fhhfh

  • Are you suggesting that the government is not the source of the extra capital?

  • you should wait till you get to third year economics, Thats when they teach you the part that inflation can be caused by higher prices.

  • Look at some of the most expensive commodities out there and you'll notice more government intervention means higher costs. Health care and higher education. This isn't a coincidence, folks.

    This economist is is a flat out Keynesian. He clearly has never once picked up a book written by F.A Hayek or any Austrian economist for that matter. He kinda made me want to punch him in the face....

  • Your angry at this man because he's telling you something you don;t want to hear, but that doesn't mean he's wrong.

    It means your world view is too closed minded.

  • Yes, yes. Now go ahead and be some visionary progressive and call me closed minded. No, you dip. I know exactly what he's talking about and where he is coming from; so calling me closed minded is the flat out false. Yeah, I don't like what he is saying because I personally think he is wrong.

    Would you like it if some free-market economist was talking about giving the private sector more freedom? No. But that doesn't make you closed minded...does it?

    No

    F.A. Hayek makes a ton of sense imo

  • this economist didn't say hell of alot, so the fact that you think you know "exactly where he is coming from" is why i called you closed minded

    You obviously projected on to him an ideology that he may or may not have, and usually when people do that they immediately close their minds to what that person is saying.

    i spent 2 years in a very conservative collage having Hayek shoved down my throat. i agree with many of his views, but I also know the world is more complicated then he implies

  • Do you then disagree that Hayek was right when he says that social and economic planning, like Pollin suggests, can't work because it's too complicated for any governing body to control or even begin to understand?

    When an economist makes a recommendation like massive government sponsored jobs programs, it's not difficult to figure out what ideological direction he's coming from.

  • They need to take into account total compensation, not just wages. Compensation has mostly get up with economic growth, the problem is that a larger and larger share of total comp goes to healthcare, while wages go down. Healthcare is the main culprit here.

  • @random63x

    In the USA the main 'culprit' is mortgages.

    USA maxed credit limits to buy into the housing bubble.

    Healthcare costs in USA are high due to profits too. Bottom line chasing has led to only insuring healthy rich people.. thus profits are huge & yet more $ is syphoned off.

    In the EU tax on corps is higher. more equality means all get covered for far less cost by social schemes.

    Same with education.

    There is still private for those who want it, but there are excellent state sectors too.

  • healthcare inflation is occurring everywhere, including Europe, the difference is the EU countries have mechanisms to cap the spending, we don't. Also, many EU countries have LOWER corporate taxes, depending on what you look at. Finally, the poor are covered here via Medicaid, it's the working poor who aren't covered. P.S. Mortgages were the final pathway in the inflation of our economy, not the underlying problem.

  • Either freetrade is made history or get used to living in 3rd world conditions.

    Watch Gore and Perot debate NAFTA on larry king in 1993.

    Ross was a 100% correct on his predictions.

  • Well, when you're talking about wages of C.E.O's and School Superintendent Salaries: absolutely right.

    Why are they making over 300 X what the lowest paid worker gets, when 30 years ago, they made 30 X what the lowest paid worker was paid.

  • @greatbroad Of course. High wages means those who makes millions, not those who make 45k. In Germany, for example, the average CEO makes about 18x what his employees do. Here, it's like 300x. So I make 52k, my CEO makes 1.8 MILLION. Who's job goes first on the chopping block? Mine, of course, even though it only saves a small fraction of what his salary costs, and the company can very easily survive not having him, as well as not having me, of course...

  • @smtobin67

    That's why in the US, there is a steady stream of companies leaving US mfg and going abroad (along with jobs)

    It''s seen most clearly (my opinion) in Halliburton - completely reincorporating - to avoid paying their share of US taxes - and they do the work the US military once did - completely for profit. War, for profit! And now they are no longer a US company, serving US soldiers. What if we go to war with that country, which is believe is Saudi Arabia?

  • When "research" is spelled wrong in the title, you know you are witnessing a farce. Of course government programs cause inflation, they are not providing real value in the economy.

  • @chris3443 What?? Police. Fire. Roads. Social Services. If the gov't does not collect taxes and provide services, then the private sector will have to take over and those services will simply not exist for the public at large. Talk about real value, it's real value to be certain.

  • Co-signed, well said.

  • Economists lie.

  • left wing, right wing, chicken wing... all the same. Exxon, Dupont, Chevron.. These are our owners.. this country doesn't have a government anymore. Politics is just a front funded by corporations to blind us all.

  • @danmarino1970 AMEN!!!

  • Fiat currency, corporate & banker greed, golden parachutes, unjustified occupancy of foreign sovereign nations, black ops... are just but the few of the reasons we are in this mess. The brunt of the problem is that the majority of the people in the US (unfortunately) still believe and continue to believe that our beloved governments and their pimps in the corporate sector care for us. People still send their children off to die because of lies and deceit. The answers lie right under our noses.

  • @danmarino1970 agreed

  • @fireteamforfreedom: What government spending? That's a little vague. Public programs create jobs and work in the general favor of small, locally owned businesses. We've been cutting public funding for decades. What you (hopefully) mean is cut corporate welfare, which empowers large corporations to the detriment of small business.

  • @brandon71085 AMEN!!!

  • if inflation was caused by the workmans

    $ per hour,

    whats up then with 1 (one) banker getting 2 digits in millions?

    1 ppl = 30 $/hour

    1 banker = 30$/ minute ///yepp indeed , i

    see the problem..........wtf

    Who the heck came up with this nonsense topic?

  • Try

    1Wall Street Banker = $30 / second

  • Slash government spending! Get out of the way of small business!

  • @fireteamforfreedom

    Small peddling.. ups business can help us?

  • if they create millions of government jobs it causes inflation because government jobs comes from the tax payer or the government. of course, the government doesnt have the money, and government spends more tax money than they take in so of course this will lead to inflation.

    if millions of jobs are made in non government jobs, and ideally productive jobs, then inflation will play no roll in this especially if the workers are making goods to export.

  • Sustainability and exponential productivity are already colliding heavily. This discussion is outdated, as economy needs to be reformulated with primary goal to make life better while being sustainable. Currently, we are making it worse and "experts" are still reading from same books.

  • this professor does not understand the whole picture.

    ok, according to him 4% inflation is healthy but if you have 1% interest rate then no one is going to save money.. actually old people depending on fix income will suffer the most.

  • Hey Robert Pollin, get a clue.

  • Inflation is caused by too much Fiat money. The Fed/Government uses the Fiat money first when it has value, when the money reaches you and me, it's worth much less. ( It gets watered down) The public mostly doesn't know this because the Fed controls most of the information people get from tv and papers and mainline sources. END THE FED ~~hey, real news, GET A CLUE!

  • When Dubya was president the unemployment rate was between 5-7 percent always! Now that its at 9.75% republican want to whine about the high rate of unemployment. Yes, all unemployment or underemployment is bad, but it has been my opinion that republicans want unemployment to remain high so workers will always be struggling to find work. This will keep wages low and productive high due to fear of unemployment. This is proven true by republicans not supporting a jobs bill.

  • just so we're clear, "production" in economics doesn't literally mean "how hard workers work", it refers to GDP/worker. keeping employment high doesn't help that. it would be crazy to keep unemployment high from a political standpoint...if unemployment had been higher, bush wouldn't have been reelected, right?

  • random63x

    Productivity is what I meant to say, is how hard employees work/ the rate at which goods or services are produced especially output. GDP is a basic measure of a country's overall economic output. Your statementit would be crazy to keep unemployment high from a political standpoint. Then explain to me why republicans vote against jobs bills? Dubya didnt win reelection, he cheated in Ohio in order to win.

  • Whatever you think of Dubya's method of winning, all I meant is that high unemployment is a fast way to lose voters (you can only cheat so much). Republicans vote against jobs bills for many reasons (stalling Dem agenda, bc they may occasionally realize "jobs bills" usually aren't geared towards actual working ppl, bc their voters are sick of high gov spending), but "keeping unemployment high" sounds like a conspiracy theory to me.

  • @random63x as Adam Smith once said "Every time two capitalists meet, they engage in a conspiracy against the public."

    Keeping unemployment high is useful for the wealthy, since it lowers the bargaining power of unions and even individuals, makes workers instantly replaceable, and more willing to suffer horrible work conditions and/or compensation.

  • If there is a conspiracy to keep unemployment high by a small group of the ultrawealthy, they would have to enlist the politicians, who can't get elected in a climate of unemployment. So we have tension between those two groups. Historically, unemployment has been lowering for decades, so it would seem the public's desire to be employed is winning. Whether unemployment would be lower still without corporatism, I don't know.

  • Of course, politicians often say one thing, and do another. Even while politicians do one thing, they can make it appear to be the opposite. For example, Reagan ran on small government an lower taxes, but he raised taxes, and caused the largest deficit in history amid historic expansion of the federal budget. People thought they voted for smaller government, they might have even felt like they had a smaller government at the end of 1988, but they were fooled.

  • A policy of unemployment isn't something a "small group of the ultrawealthy" conspire to carry out, its the will of the ruling class in general, which are made up of the rich and the politicians (those two groups mostly overlap). Also, nobody runs on a platform of increasing unemployment, its just the predictable effect of legislation they pass. For example, it was widely predicted that NAFTA would increase unemloyment, and it did. Bush also "increased trade with China," which meant we lost jobs

  • Why is 4% inflation the magic number? It sounds to me as if there shouldn't be any inflation at all. That's what taxes are for, right? It's like a double-tax.

    I don't see how you equate inflation with higher wages kmarinas86? I think that's the whole point of this man's argument as well --- for the last four decades in the United States wages remained static at best while production doubled while who knows how much profits skyrocketed.

  • the fed causes infaltion..

    money out of thin air !

  • FANTASTIC! I see so many people commenting here who actually get it! They see past the economic ludisistic philosophies being promulgated these days and accept the real truth that we, as American workers have been getting the shaft for 2 generations now.

    There is not a damn thing wrong with wanting to share in the results of our hard work and dedication, there is nothing damaging to our nation in doing so, as a matter of fact, it is actually beneficial to do so. Unless you do NOT (cont)

  • feel that stability is good for a nation. All the yammering about "Fiat" currency, trickle down economics, foreign competition, and lower taxes equaling reinvestment and prosperity has proven out to be just so much noise and diversionary tactics.

    take back your country folks, the time for doing so is running out and the consequences will be beyond dire if you don't. Drop the Xian programming, be PROUD of yourself and your labor and DEMAND to be paid what you are worth.

  • "A 4% inflation rate is healthy"? Healthy for the government.

    It doesn't feel healthy loosing 4% of my spending power every year to the inflation tax.

  • This guy knows his stuff, hes atleast able to distinquish between the different kinds of inflation. Modern economists just lump them together with only a marginal distinquishment.

  • Its the elite who control society here, those top 1% who own like, 80% of the wealth in the country. They own your senators and congressmen, they run the system. Do you really think they are going to make it better for the average guy, or are they going to continue acting by their greed?

  • I agree a massive public's work project is exactly what this country needs in order to stimulate the economy as well as a massive industrialization involving the private sector. We can't afford to buy from China when the end result is having to pay these unemployed people unemployment checks ad invenatum. There's a massive hole in the economic cycle when we keep buying from the Chinese. That wont help this country in the long run. Wal Mart is owned by China.

  • Printing money out of thin air (what the Federal Reserve does) causes inflation!

  • You people are silly... The Fed printing money is inflationary. Wages have not kept up with Government spending in 30 years.

  • Printing of fiat crap backed by nothing causes inflation you morons.

    GET A CLUE!!!!!!!!!!!!!!!!

  • This is like staring at a moving conveyor belt. If you stare at it long enough you might start feeling you are moving even though you know you are stationary. The value of the dollar is really losing its value but what we see is prices rising.

    watch?v=S4UVGhD2u8U

  • Higher wages results in higher demand. As demand rises inflation may rear its head if industrial capacity is running at its limit. But since industrial utilisation is currently low inflation from higher wages wont result. Also there is a lack of investment so even when industrial capacity usage is maxed then industrial capcaity itself will be increased through market forces.

  • If he is trying to play devil's advocate and offer an Austrian school critique of public work projects, he did a horrible job. He obviously doesn't understand the critique.

  • nooooooooo inflation is the fed increasing the money supply

  • Higher wages don't cause inflation. The Fed causes inflation, which in turn generates higher wages and higher profits. But this is only nominal values. Government policies currently favor profits over wages. The result is that the value of the worker has fallen, and the value of the corporation has increased. The value of the individuals, who create new competition through entrepreneurship, has fallen. The value of the established corporations, which don't create new competition, increase.

  • Let the free market resolve the issue of job losses. Not all jobs are going to pay the same, it is unnatural. IF you are worth more, you get payed more,but if you are worth less, you get less.Minimal wage, destroys jobs,because it over values labor, and makes it more difficult for employers to have reasons to higher more,because there less ways to profit off labor. These statist ideologies are fallacious, and dangerous. This is the most dangerous religion out there.

  • @KevZen2000

    I love how you talk about statism as a religion while you simultaneously so blatantly worship the invisible hand of the free market.

    On top of that, while we are stuck in the worst financial crisis since the great depression, caused by uncontrolled market forces, you talk about the danger and fallacies of statism!?!

    I am not a statist myself, but you desperately need to start to critically reflect on your own religion before going jihad on the rest of us.

  • The Private Federal Reserve is the cause of inflation by putting worthless fiat dollar ponzi I.O.U. 's in digital circulation. The end of the dollar will be the end of Inflation. Only Gold & Silver is real money everything else is a lie!

  • @Rizky06

    gold and silver is real money? How many people like the Rothschilds have gold laying around in their basement

  • Comment removed

  • Higher wages are caused by inflation or the supply and demand factor of economics..When you overpay people with government jobs, you increase the inflation,because you go against the natural order of supply and demand, and more jobs are lost,becausse employers can not profit,because labor cost more then its worth due to the social program created to over value labor.If there is more demand then supply, you will get payed less, unless you use fantasy ideas of "socialized salary control."

  • "more demand then supply", i meant to say

    "more supply then demand"

  • @KevZen2000 hmm no, since by paying people in the public sector you actually get demand up.....and so you create jobs....there are no social programs exist to over value labor....name one. - if you get more demands than supply, prices go up - companies make more profits, you can up productivity, or pay your employees higher salaries?

    Weird how I disagree about everything you just said.

  • I am so glad this guy is actually intelligent enough to hold this conversation. I was starting to think I was the only sane person left and thats crazy. I'll start to buy The Nation again...sorry I ever stopped.

  • an increase in wages does not cause inflation. This is pure moronic idiocy. The arguement/fallacy and logic backing anything that suggests otherwise is just plain small minded and/or propagandistic.

  • If you want to understand real inflation - the rise in the money supply it will be much clearer. Price inflation is only the consequence of this. Inflation is not things getting more expensive, it's the paper you buy things with losing value.

  • I did a research project for a polisci stat class from 1914-current, a state by state comparison and found no correlation, between the two.

  • Do people really believe inflation is caused by raising wages? I understand that capitalist bosses choose to raise the prices of their products so they can make more money once their workers start demanding higher wages, but I don't understand how it would cause inflation per se.

  • Yes they do. Anytime someone talks about higher wages the first copout is that" higher wages lead to higher prices" but that's a lie the establishment tells you to keep you working for pennies a day.

  • Wages should go up with productivity. Going by this measure, wages are massively depressed.

  • Precisely why this is no recession

    Its elementary Watson

  • there is a difference between real wages and nominal wages. increased productivity within a particular business will result in higher wages until competition catches up but in the economy in general nominal wages can only increase if the money supply increases but the only thing this changes is prices and wages, nobody is particularly better off.

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