You can't help soften the blow of inflation by giving people more money! That will just cause more inflation and make everything worse!

We've all heard it a thousand times, giving normal working class people, especially poor people, more money will only make everything worse by causing more inflation. Somehow this will leave the majority worse off than if nothing had been done.

This is considered common sense among liberal-conservatives but as leftists we instinctively know that it is bullshit. Maybe higher wages and benefits would increase inflation but the net total is that the working class would be better off than before.

Instinct is not a very convincing argument though so how do you argue the case against the wage inflation spiral to liberal-conservatives?

  • Llituro [he/him, they/them]
    ·
    2 years ago

    the wage-inflation spiral hypothesis is bunk because it assumes that any increase in wages will necessarily result in an immediate reduction in real wages to maintain or increase profit. this does not hold up to any amount of study.

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

      Libertarians in shambles when they realize econ 101 theory doesn't actually offer a perfect model the real world.

      Not recognizing that a real world business makes profit, and therefore has the option to make less profit, is a classic libertarian misunderstanding.