153. inflation and wealth and unemployment

July 8, 2009 § Leave a comment

Financial institutions create wealth that has claims on real world goods. But we are producing fewer. Then why not inflation, too much money  chasing too few goods? because the unemployment and lowering wages keep purchasing power of the poor in balance with that of the rich so it is a zero sum game and we don’t get inflation.

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You are currently reading 153. inflation and wealth and unemployment at Reflections on GardenWorld Politics Douglass Carmichael.

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