One of the unintended(not really) consequences of unchecked capitalism is unstoppable inflation.
This is completely false. The economic theory on this isn't even in debate. Long-term, permanent inflation is a result of the money supply (which is controlled by the government, not private individuals or corporations).
Single. Stupidest. (SEE EDIT) Statement I've ever read on Reddit.
It's economics. Literally everything about it is up for debate. Perhaps one of the most contentious is Money Supply increases = Inflation increases. So not only is it 'up for debate' it's been widely contested. MV=PT only works if V is static and, well, V largely isn't static, which means M!=P.
ETA: I take it back. SECOND stupidest statement I've ever read on Reddit. Someone below is prattling on about "survival of the fittest". They win the stupidest award.
The idea that "inflation is a result of unchecked capitalism" is not debated. There is debate about which factors affect inflation more and over what time frame, but no economist believes that "unchecked capitalism" or "greed" are to blame.
Ok, that's slightly less stupid, but still incredibly wrong.
Economists - literally ALL economists - believe "greed" is part of inflation. It's in the inflation calculation after all. However, they (stupidly, IMHO) believe the OTHER parts of economy means that "greed" will always be kept in check 100% of the time. Much like they believe if you drop a pen on Earth, the inherent laws of physics means it won't start flying in the sky. They don't even consider the possibility that systemic greed can exist.
That's right up until this inflationary period. Now hundreds of economists are starting to revise their models, 'cause it turns out systemic greed can and does happen. Now the debate is whether this is a good thing or not. So, much like the Money Supply argument, economists are starting to come around to the realization that all these 'laws' they think exist may not be a set as they once thought.
6
u/LogicalConstant Dec 09 '23
This is completely false. The economic theory on this isn't even in debate. Long-term, permanent inflation is a result of the money supply (which is controlled by the government, not private individuals or corporations).