This is a great explanation for a commonly noticed frustration. A friend of mine asked me the other day what I think would happen if everyone defaulted on their student loans and if I think the government would implement mass debt forgiveness. My response was that it would be very unlikely because the government would rather distribute new wealth at the top, not just because of upholding insider interests (which is probably the biggest part of it, if we’re going to be honest), but because it has an immediate (but semi-artificial) impact in boosting the economy in times of crisis. Inflation works in a similar way. This is an argument for increasing the minimum wage, since in most cases the minimum wage has not kept up with inflation. But as you said, evenly redistributed wealth means rising prices. It’s the big Catch-22 of poverty and even of the middle classes now. Poor people always get the most screwed over.
RE: Cantillion Effects
You are viewing a single comment's thread from:
Cantillion Effects
Increasing the minimum wage wouldn't help the poor because there will be a ripple effect that results in the increase of prices and future unemployment. In order to actually help the poor, new money would have to given to the poor with no strings attached. Just as the Cantillion effects gives the government and the elite new money with no strings attached, the same can be done for the middle class as well as the poor.
But the government wouldn't do that because of greed. Money is just a mechanism for the government to seize real assets from the people.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Awesome comment @snoreball
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Awesome comment @malloryblythe
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit