It’s Called the PetroDollar For a Reason: Inflation sparks a global wave of protests for higher pay – The Wage Control Debate, presents problems in a DEFLATIONARY economy – June 25, 2022,
When I grew up, economics class was EXTREMELY boring, not because economics or even home economics is boring, but because of how economics was PRESENTED to students. To this very day, learning economics is mostly about memorizing the theories of people who came before you. The keyword is memorizing THEORIES, which is the real reason why economics is so boring.
a lot of FAILED economic theories are still being taught today, and they’re not being taught in a manner that dives into why these economic theories fail, they’re being taught in a manner that almost demands NATURAL human behavior change in order for their economic theories to work. a reminder that a very popular Socialist Richard D. Wolff is an American economist. Any honors degrees, diplomas, etc Richard D. Wolff earned I believe he received FAIRLY, yet Richard D. Wolff imagines that SOCIALISM is the only path forward and Capitalism shouldn’t even be CONSIDERED an option for the future.
Socialism, Communism, Progressivism, and oligopolies which I include as a Leftist ideal all require POWER to be concentrated in a few hands. Free Market capitalism is the opposite, there’s something called BANKRUPTCY in capitalism, which basically allows bad ideas to FAIL. In the board game monopoly, people tend to forget INNOVATION is not allowed within the confines of that game.
The rules in monopoly are set, and some people often confuse the game monopoly with capitalism. The Free market or free enterprise system, rewards INNOVATION, and what destroys the Free enterprise system is GOVERNMENT or you might call them the central planners or referees deciding who wins and who loses.
People tend to forget why Franklin D. Roosevelt (FDR) won his elections in a landslide. As an example, Franklin D. Roosevelt was for PRICE CONTROLS. FDR was for Social Security. These guarantees by the government were not CAPITALISTS, these were socialist ideals and they clearly didn’t work, because one of the things FDR had to do was change the convertibility of Gold and also make owning Gold in a manner the government decided ILLEGAL for Americans.
There was a DEMAND for the government to provide social security and minimum wage, and this is where economic debates need to happen because whether you’re a Keynesian or a believer in Austrian economics, we can’t ignore the DEMAND for big government. Where I am annoyed by all think tanks is this push to SILENCE the opposition.
Recently Roe V Wade was overturned by the U.S supreme court and some of the words used by the current President Joe Biden is that he felt America was going back, not forward. My problem with Progressives is that they imagine they have a MONOPOLY on the future. They brand themselves as Progressives, when in fact many of their ideas are REGRESSIVE
The current war on fossil fuels by Western governments has led to a war in Ukraine, and a spike in consumer price inflation, which obviously leads to wage earners wanting to be COMPENSATED for this green energy transition, that our Progressive governments are telling us is MANDATORY to end climate change? Now, I don’t know the future of these protests, I can’t look that far into the future but, I think it’s fair to say that we’re headed for ECONOMIC deflation because COSTS of doing business are going up, and let’s be honest here, people who like the INDEPENDENCE of driving have ZERO desire to take public transit.
Being that the governments have also inflated asset prices it’s very expensive in the modern world to LIVE NEARBY work. In Canada, where I live most of the jobs are in the big cities, but rents are at record highs because one of the ways our government pays for our existing welfare state is by keeping interest rates artificially low, which makes it EASIER for not only the Canadian government to deficit spend but also makes it cheaper for consumers and investors to go into debt.
Asset price inflation is a can that can be kicked down the road a lot longer than consumer price inflation. Because now, living in suburbs and driving to the city for work just got more expensive. Now, sure, the idea of transitioning to EVs sounds nice, but it will require reshaping the grid. Where I live, once the A/C units start turning on during the summer, we expect to get blackouts, this is before Electic Vehicles(EV) start finding new homes.
Central planners are often short-sighted and I think these demands for higher pay should be observed carefully because higher CONSUMER prices typically lead to economic DEFLATION. Asset price inflation could allow a person to borrow more money, but consumer price inflation restricts spending and as I’ve pointed out in prior posts, what governments don’t want is for the price of oil to CRASH, because existing regulations will make FEWER drillers want to participate in the recovery, which could lead to a SHORTAGE of oil.
Interesting times ahead!