prices go up?

Why.

Help.

Why is government printing more money and giving it to me a bad thing. I need it to live.

I’d like both the econ101 (fake, lib, propaganda) and the marxist (real, truth, based) answer pls.

  • PosadistInevitablity [he/him]
    ·
    2 years ago

    The basic idea is that dollars are a good that can be manufactured for almost no cost through a variety of ways.

    If the amount of dollars increases faster than the amount of other goods that exist, each non dollar good will be worth more dollars over time to compensate.

    • stinky [any]
      ·
      2 years ago

      Why would the price of other goods increase? I don’t understand that. Would it just mean some dollars go unspent, until there are more products to spend them on?

      • PosadistInevitablity [he/him]
        ·
        2 years ago

        People tend to spend their dollars.

        Think of prices as an informal “auction”.

        If the audience has more money but the same number of goods to buy, the result will end up being a higher final sale price as the audience competes.

        • stinky [any]
          ·
          2 years ago

          Ok that makes sense. Like two people want bread but there’s only one bread. The person with more money gets the bread and the other person starved.

          But it doesn’t have to be that way. Like, can’t there be some law that says in that situation you can’t increase the price. You have to instead split the bread in two to make sure no one starves?

          If you can do that, then…prices don’t have to go up all. It’s a choice.

          • PosadistInevitablity [he/him]
            ·
            2 years ago

            You’re right, it doesn’t have to be that way. The system is unjust, and quite dysfunctional. Especially when the government constantly devalues worker dollars by giving free money to the finance industry

            All capitalists countries actually suspend this system by resorting to rationing during serious crisis.

            • stinky [any]
              ·
              2 years ago

              Especially when the government constantly devalues worker dollars by giving free money to the finance industry

              This part especially is so fucked. Banks get free money to buy stuff that cost actual labor and time. Like…that’s just pure fuckery.

          • Dimmer06 [he/him,comrade/them]
            ·
            2 years ago

            Price controls are generally regarded as bad by economists because capital tends to rebound and go to far in the other direction and cut production.

            Any rational person would see the problem in that scenario being the capitalist but for some reason we don't talk about that.

            • stinky [any]
              ·
              2 years ago

              Yeah, that’s what I’m realising via the comments lol. People assume it’s like a law of nature when it’s at most just general human behaviour. And a strong govt. can put a stop to it whenever it wishes.