Ok, so lets say everyone worked just as hard as each other and got better paid jobs. Then what?
Where are the cashiers? Where are the nurses? Where are the postmen? Where are the bus drivers? etc etc.
Mortgage Rate Rises
- Thread starter glenimp617
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Ok, so lets say everyone worked just as hard as each other and got better paid jobs. Then what?
Where are the cashiers? Where are the nurses? Where are the postmen? Where are the bus drivers? etc etc.
I assumed he meant personally beat the effect it's having on you
No, you are not thinking it through. He said that, as though it was possible for everyone to do that if they put their mind to it.
Quite obviously an economy could not operate if that were to happen (see my post above).
But the economy would not function if everyone did that (or i should say; if it were possible for everyone to do that).
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Soldato
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You need to split out individual from all
If you individually get a good pay rise that beats inflation it will have an undetectable impact on inflation, but you are now fine.
If everyone achieves what you did its inflationary to the economy.
Which is precisely why it's a dumb, simplistic take.
You are still missing the point.
It is impossible for everyone to do what he said to do, even if they had an equal work ethic and will to do so.
Where are the jobs for everyone to do what he suggested?
Then, in the fantasy world of this happening (infinite higher paid jobs), who then does the lower paid jobs that barely pay people enough to keep a roof over their head?
As someone said above, you cannot just leave the lower paid jobs behind to be more and more lower paid (relatively speaking).
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Of course. But not everyone will. really, because we are all looking out for number one, it is the only thing you can really control to "beat" it.
If you live completely idealistically you'll always be disappointed
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Associate
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Sadly it is not possible to please all the people all of the time.
I'm not the one who is doing that. The guy i was responding to is the one doing that.
"Just get a better job" - oh gee why didn't everyone think of that!
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Soldato
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I know exactly how it works no need to think it through.
Inflation is a self feeding circle. To kill it all you need to do is stop feeding it.
If you allow it to be fed then how much it is fed dictates how much it will in effect self generate.
If everyone received a 10% payrise because inflation was 10% it would feed inflation. But not at that exact ratio. It would depend exactly how much was passed on. BUt it can cause a spiral.
If I have a 10% higher wage bill and pass some on to my customers they may have 10% from staff and and extra 1% from me.
He was right though you have to look after yourself.
Caporegime
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Yours is the mindset that will always keep standing on society than raising it up
No he wasn't right in the slightest.
Explain how, if everyone did what he suggested, the economy would function/everyone would beat inflation?
You should have got a tracker you monster, think of the poor banksThey can suck it!
Next they'll say I shouldn't have taken a fix mortgage at a low rate.. Because we are all in it together.
Caporegime
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At a simple level
If inflation was 2%, would it be okay giving everyone between 2%-3% payrise?
Soldato
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Sorry but I am not going to give you a full economics lesson on here.
I suggest if you have never studied any economics you go and buy and read economics for dummies. Thats not meant as an insult by the way, its actually really good!
What I can see being argued here is that it's the only way to handle it on an individual basis.
That's not to say that more, or at least something else, can be done at policy level to address the effects or mitigate pinch points for those at the lower levels of earning. As you say, we need those lower paid roles for society to function!
As i thought. You cannot explain it, because the idea is a load of rubbish.
You should have got a tracker you monster, think of the poor banks
Should have taken out a huge debt too at 7pc. Get my money out of the economy and into the lenders hands. So selfish of me.
Soldato
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It depends what you mean, but when inflation is very low than the impact from the spiral or multiplier is so low its not a significant factor.
There is no right level. Its set around that as a target because deflation is actually even more damaging than inflation.