The 'Too Much Money Chasing Too Few Goods' meme is replacing the "The Government Is Broke" meme. Both are nonsense (except in some special cases that don't apply generally) when they are viewed through the MMT lens.
New Wayland
The 'Too Much Money Chasing Too Few Goods' Myth
NeilW
12 comments:
“ A student of economics should not know that because it is wrong.”
LOL but they think it’s correct.... that’s the way it works...
There is inflation coming through though. It's due to the supply distruptions and not too much money chasing too few goods.
"There is inflation coming through though."
That's not inflation. That's a lack of sufficient competition, which the price signal will resolve as it is supposed to. Competition is what force prices to come down from their monopoly price (the price you can demand before the buyer goes 'no way' and does without).
Remember that in MMT there is 'true inflation' which is excess demand that feeds through to a wage/price spiral. That's the one everybody gets excited about.
And then there is 'semi-inflation' which is a consequence of some supply-side tightness. If business knew that 'price rises' would immediately trigger competition and anti-trust action from the authorities, they may be less likely to try it on.
Mainstream uses their usual rhetoric tricks to try and conflate semi-inflation with true inflation - and then use that to justify more free money for them and their mates.
“ Mainstream uses their usual rhetoric tricks”
No they only look for data that supports their thesis... it’s not a “trick” or a “myth”..
Remember Neil the liberal arts methodology starts with the thesis FIRST, then looks for data that supports their thesis...
So they start with their inflation thesis then just look for prices to increase and then point to that as empirical evidence that their thesis is correct or true..
So if Mike is correct and the current commodity prices have topped and prices now reduce, they won’t say anything about it...
But this will keep them in the trade as longs and they may lose all of their munnie...
https://en.wikipedia.org/wiki/Myth
Myth is a folklore genre consisting of narratives that play a fundamental role in a society, such as foundational tales or origin myths. The main characters in myths are usually not humans like gods, demigods, and supernatural figures.[1][2][3][4] However, others also include humans, animals, or combinations in their classificiation of myth.[5]
If anyone wants the context of the first quote in NeilW’s above article, it seems to come from this Telegraph article.
https://www.telegraph.co.uk/business/2021/05/11/big-spending-boris-needs-rediscover-inner-thatcher/
Re the author of the Telegraph article’s complaint that the Bank of England did not mention the increase in the money supply over the last year or two, that seems fair enough. The fact is that the better off section of the population have accumulated a large pile of saved up money during the Covid period, the consensus is that that MAY cause of surge in demand and hence excess inflation. But anyone who thinks they can predict with certainty what will happen is sticking their neck out.
Actually, myth is correctly used with a variety of meanings according to the dictionary.
Merriam-Webster
Definition of myth
1a: a usually traditional story of ostensibly historical events that serves to unfold part of the world view of a people or explain a practice, belief, or natural phenomenon
creation myths
b: PARABLE, ALLEGORY
Moral responsibility is the motif of Plato's myths.
2a: a popular belief or tradition that has grown up around something or someone
especially : one embodying the ideals and institutions of a society or segment of society
seduced by the American myth of individualism
— Orde Coombs
the utopian myth of a perfect society
b: an unfounded or false notion
the myth of racial superiority
3: a person or thing having only an imaginary or unverifiable existence
the Superman myth
The unicorn is a myth.
4: the whole body of myths
a student of Greek myth
Inflation qualifies as a saga.
Include the orchestral version of Ride of the Valkyries, and you're good to go.
Those other definitions are figurative forms Tom..
You can’t correct somebody making a technical error by using figurative language... you have to use proper technical terminology in that event...
Those other definitions are figurative forms Tom..
You can’t correct somebody making a technical error by using figurative language... you have to use proper technical terminology in that event...
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