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?

      • Mardoniush [she/her]
        ·
        2 years ago

        I'd like to point out that the result of this command economy was that in 1945 they had more productive capacity, not less. And a bunch of war surplus stuff too. So many goods deflated in price.

        So cheap in fact that the US had to make the core of what would become the Military industrial complex from the surplus production capacity.

    • spectre [he/him]
      ·
      2 years ago

      Workers with high wages don’t need to take out as much mortgages and loans and are thus unprofitable to the financial capitalists.

      I see where you went with this in the next sentence, and agree with your overall point there, however I wanted to point out that high wage workers generally just end up qualifying for and taking out larger mortgages which drives property values sky-high. I think that what I'm saying is sort of irrelevant to your point though, cause under a more equitable economy then yeah people would be operating on credit less.

    • usernamesaredifficul [he/him]
      ·
      2 years ago

      but to force them into perpetual debt as the banks make profit from interest payments. Workers with high wages don’t need to take out as much mortgages and loans and are thus unprofitable to the financial capitalists. Production

      consumers who cannot pay their debts are however not profitable to moneylenders if they grow to a majority as we notably saw in 2008. The trouble with extracting from the working classes is that eventually they run out of money

        • usernamesaredifficul [he/him]
          ·
          2 years ago

          yes but that itself is unsustainable too as even the state cannot endlessly throw money into a hole. Obviously it can for a very very long time but US military spending is getting to the point of being an actual issue for it

      • learntocod [they/them]
        ·
        2 years ago

        The trouble with extracting from the working classes is that eventually they run out of money

        Lol :anti-thatcher-action: