Joe Doakes from Como Park emails:
Liberals think 2% inflation is a good thing, it keeps the economy growing.
The definition of “money” is “a store of value.” The whole point of using a monetary system instead of a barter system is to maintain the
value of money. Inflation erodes the value of money.
If there’s 2% inflation and you get no cost-of-living adjustment in your wages, then at the end of the year you can buy 2% less stuff because the
money you earn isn’t enough to buy the same amount of stuff at the new, higher prices. Everybody knows this but they accept it because we’re
conditioned to accept it.
Suppose instead there was 0% inflation, but your employer cut your wages 2% each year. End result would be the same – the smaller amount money
you earn isn’t enough to buy the same amount of stuff. But would people shit a brick? Damned right. They’re working just as long, just as
hard, but they’re losing ground.
To me, it’s so obvious I want to scream. How can Liberals not see this?
“Liberal economist” is another word for “economic phrenologist”.