cross-posted from: https://thelemmy.club/post/12591808

  • Jared Bernstein, Joe Biden's Chief Economist, faced difficulties explaining money's workings in a documentary or Finding The Money,' despite his role.
  • He stumbled through concepts, highlighting the confusion around government money printing and borrowing
  • Bernstein, who is head of the US Council of Economic Advisers, is not formally trained in economics and appeared bewildered in the clip
  • ElGosso [he/him]
    ·
    2 months ago

    This is one reason for it, but there are other potential causes - for example, supply shocks in critical goods can lead to what's called a wage-price spiral where workers demand more pay in response to rising prices, which increases demand because they have more money to spend, causing sellers to raise prices in response.

    • Self_Sealing_Stem_Bolt [he/him, they/them]
      ·
      2 months ago

      There has never been a real world example of a wage price spiral tho. It's a boogeyman invented by bougie economists to keep the working class in line (accepting of low wages)

      https://thenextrecession.wordpress.com/2022/11/20/the-wage-price-spiral-refuted/

    • moujikman [none/use name]
      ·
      2 months ago

      100%, it can get even crazier too, if people think there is inflation then it causes inflation. Macro-economics isn't real and its 80% in peoples heads, 20% material conditions.