2022-12-17 21:18 UTC
"Inflation hawks warn us of the wage price spiral, which is when inflation goes up and powerful workers bargain for higher wages, which drives up costs, and thus prices, and thus wages. This is the fairy-tale version of what happened in the 1970s and it's entirely true except for the fact that it was OPEC's embargo driving up oil prices that caused inflation, a fact that makes it entirely false, but oh well."
From @pluralistic:
https://pluralistic.net/2022/12/14/medieval-bloodletters/#its-the-stupid-economy
Replies (2)
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@theurv@mastodon.social 2022-12-17 23:01
@nottrobin@fosstodon.org @pluralistic@mamot.fr very similar to this moment where climate and Covid have stress tested brittle economic systems and a lack of supply on high cost items like housing and cars have lead to increasing rates to cut demand which instead just makes people miserable without addressing root causes
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@ChrisBoese@newsie.social 2022-12-17 23:25
@nottrobin@fosstodon.org @pluralistic@mamot.fr I’m curious, which is harder to un-do, an inflationary spiral or a recessionary spiral? Both present positive feedback loops. Press/pundits/economists obsess on inflation like boy with hammer, but 2008-9 taught me new things not remembered since Great Depression. I remain more sobered by risk of recessionary spiral.