It has long been a rule of thumb to have $1 million saved for a comfortable retirement; but, thanks to inflation, the youngest generation of workers likely will need three times as much. According to...
A transaction for stock is the same as any other transaction. It terminates once money is exchanged. You do not extrapolate what happens after. When I pay my check at a restaurant does the cook run out the door to spend my money or does it go in the register?
I saw your other posts and wanted to point out a few key points.
fiat money has no intrinsic value. Doubling or tripling the supply doesn’t change it’s value. Halving it doesn’t make it suddenly more valuable.
commodity based currency, like a gold standard, does have intrinsic value. Finding new supplies of gold will reduce the intrinsic value of all gold, so it would see a change from the money supply changing all else equal.
you mention it several times in other posts - it is the circulation of money that can (not necessarily) cause inflation. Imagine I sell $10 of goods at market and go home, vs selling $10 of goods then buying $10 of groceries. Money supply is irrelevant to the inflationary effects, so long as there is sufficient currency to account for all goods that are currently traded.
post housing crisis, the US money supply increased tremendously during QE, yet inflation was low. Monetarists shrug, but the simple reason is money supply doesn’t cause inflation.
Have you read Capital? It goes through money and velocity pretty thoroughly early on and I think addresses some pretty big assumptions econ classes tend to present.
fiat money has no intrinsic value. Doubling or tripling the supply doesn’t change it’s value. Halving it doesn’t make it suddenly more valuable.
If you double the currency, and each dollar has the same value, then you’ve doubled the total value available to each person
Of course that’s nonsense, money printing doesn’t create value.
So the only way to actually make it make sense is that the total value stays the same, and doubling the currency means each unit has half the value it did before.
How do you think each dollar can have the same value if there’s twice as much? That would mean there’s more value just from money printing, which again, is nonsense.
Have you read Capital? It goes through money and velocity pretty thoroughly early on and I think addresses some pretty big assumptions econ classes tend to present.
I’ve read volume 1, and Marx doesn’t imply you can print more money and keep the purchasing power the same after.
A transaction for stock is the same as any other transaction. It terminates once money is exchanged. You do not extrapolate what happens after. When I pay my check at a restaurant does the cook run out the door to spend my money or does it go in the register?
I saw your other posts and wanted to point out a few key points.
Have you read Capital? It goes through money and velocity pretty thoroughly early on and I think addresses some pretty big assumptions econ classes tend to present.
If you double the currency, and each dollar has the same value, then you’ve doubled the total value available to each person
Of course that’s nonsense, money printing doesn’t create value.
So the only way to actually make it make sense is that the total value stays the same, and doubling the currency means each unit has half the value it did before.
How do you think each dollar can have the same value if there’s twice as much? That would mean there’s more value just from money printing, which again, is nonsense.
I’ve read volume 1, and Marx doesn’t imply you can print more money and keep the purchasing power the same after.