• discountsocialism [none/use name]
    ·
    edit-2
    2 years ago

    There is no direct link between interest rates and wages, which is the only lever he can pull. In the 2008 recession, we saw a drop in wages when interest rates went up, which is probably what hes going off of. But there is something called the lucas critique which says that you can't predict the effects of a change in economic policy based on past conditions so it's anyones guess what will actually happen. He does want to make us poorer though to curb demand for labor.

    • Frank [he/him, he/him]
      ·
      3 years ago

      the lucas critique which says that you can’t predict the effects of a change in economic policy based on past conditions

      You mean economics is junk science and economists are little more than charlatan wizards prognosticating in the entrails of a goat?

      • Quimby [any, any]
        ·
        3 years ago

        yes. but actually. fuck economics. all my homies hate economics. Marx solved economics in the 19th century. everything else is wrong. 😤

      • fox [comrade/them]
        ·
        2 years ago

        Yeah but also the laissez faire system they've built has only one dial to control it labelled "$1 = $1 + X interest", and its so inherently chaotic that nobody on Earth can predict it.

        • invalidusernamelol [he/him]
          ·
          2 years ago

          1 labor hour pay = 1 labor hour work + 1 surplus labor hour work

          This is why it's so unpredictable, the current system violates conservation laws

    • TreadOnMe [none/use name]
      ·
      3 years ago

      What demand? Orders literally aren't coming into factories atm. This idiot is working off of last or two quarters ago numbers. This isn't reflective at all of any economic reality I live in.

      • discountsocialism [none/use name]
        ·
        2 years ago

        He's talking specifically about labor demand not meeting labor supply which has the effect of raising wages. He also thinks that wages will continue to increase until it hits the equilibrium point which he thinks will cause more inflation because buying power will be higher. I don't know what reality he's living in. (i edited by comment above to make it more clear that hes talking about labor demand)

    • LeninWeave [none/use name]
      ·
      2 years ago

      there is something called the lucas critique which says that you can’t predict the effects of a change in economic policy based on past conditions

      A whole field of people that admit they're useless bastards lmao. :maduro-katana-1::stalin-gun-2: