Re:Have we been thinking about inflation all wrong?
by TameAntelope on Thursday February 10, 2022 @04:11PM
(#30292599)
The whole point is that $10 added daily food cost results in the food producer being able to hire more employees, which means the person who makes $0/day can make $300/day now.
Also these numbers are super weird. It's probably more like $10 total daily food cost going up to like $10.30, and going from making $30/day (part time minimum wage) to $50 (near full-time minimum wage).
Re:Have we been thinking about inflation all wrong?
by oonerspism on Friday February 11, 2022 @03:15AM
(#30298579)
The numbers were symbolic to illustrate proportional effect.
I'm not seeing a great deal of causation in your theory. The same amount of food is being produced, thus the same amount of work is done - so extra employees are not required. If anything, in your closed system theory, the food producer is going to laugh and pocket extra profits.
Re:Have we been thinking about inflation all wrong?
by TameAntelope on Friday February 11, 2022 @12:10PM
(#30303924)
The same amount of food is not produced, more food is produced because it's the only way the food company can keep up with inflation.
Re:Have we been thinking about inflation all wrong?
by oonerspism on Friday February 11, 2022 @04:47PM
(#30307402)
Who is buying and eating the extra food? Did human stomach volume increase proportional to inflation?
https://www.nzherald.co.nz/business/the-conversation-inflati...
Show me which countries have wage growth for lower socioeconomic demographics currently matching or outpacing CPI? It is not happening.
We don't need to get terribly cerebral to note the basic mechanism of proportion, whereby $10 added to the daily food cost of a person who makes $50/day is vastly more impactful than the same $10 added to the daily food cost of a person who makes $500/day.