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.
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.
It's not coordinated well enough between firms, so the computers could always break the economy. There's a few valves being turned, part of the model are wage surveys and government stats so in theory the market can bear the cost increase. My particular thing was retail self storage, so people renting storage lockers, usually because they got evicted or were in otherwise dire straits. A portion of the business came from things like pharma reps/drug dealers, like lawn care businesses and some other types that wanted to store things around and not have to drive further somewhere to get some equipment or whatever. So those could pass the cost on to someone, or just take lower profit margins themselves.
If existing customers couldn't afford it then they either moved their stuff out/threw it away, or called the store and the manager looked at the computer and decided based on how they were feeling that day and how racist/annoyed they were by the customer to give them a manual override on the price. Or stopped paying for the unit and then it went to collections, usually ended up auctioned off (sight-unseen by law) and hopefully that at least covered the back rent. Some people got checks because it covered more than the rent, but that was rare.
In the broader market, there will be people who (and businesses which) just run out of cash. They'll usually find some meager form of public assistance, or take on debt. Downsizing, reducing standard of living, theft to get by are also levers that consumers pull. The debts are held by banks, who get bailed out when things get really bad.
That sounds like a soul sucking job. Sorry you had to go through that.
I’m getting the sense that banks taking on the debt and then getting bailed out is a fundamental fucking aspect of this system, given how many people have mentioned it.