I know these discussions always end up in worker vs owner debates, but what I'm talking here is about the nation.
Factories will need to adjust their prices, now you take that as you will, and if one is naive one can think it means executives will take a pay cut while workers do not, but in the end it mean less wealth for everyone, less money for taxes, less money for shareholders, less money for executives, and of course less money for workers. That is less wealth for the nation.
So yes, owners will take smaller profits, along with everyone else.
> How does this harm a working class American that derives all of their income from working wages as opposed to assets?
Their wage-dollars will now buy less stuff.
> Cite and example where a country did not default/print money for their debt payments and inflation went to 30%
The US has the world reserve fiat currency, so there are no examples because a fiat reserve currency has never existed before, but we know hyperinflation is a likely outcome. Now, from the experience we do have, ~30% inflation like in the 70s is the best we can hope for. A zombie economy like japan's would frankly be fantastic given the conditions.
>How does this harm a working class American that derives all of their income from working wages as opposed to assets?
Their wage-dollars will now buy less stuff.
> Lastly, address how any of the above prevents an increase in manufacturing jobs, which was the intent of the measures originally listed.
Don't worry, americans will have plenty of $1/hour manufacturing jobs like asians do now (or the nominal equivalente to $1 in a hyper-inflationary world). The US doesn't have the technical capacity or workforce to compete in high paying manufacturing any more and will take decades of pain to build.
Banning foreign investment will force them to dump dollars and treasury bonds and will accelerate the development of an alternative to it for international trade.
But I guess since what you want is inflation that is one way to get it, tho it will not be 6% but closer to 30%.
Yield curve control has not worked for anyone, it is a death spiral that results in zombie economies, at best.
The reason foreign real estate investment is so high is because the dollar is the reserve currency of the world, and since those countries produce so much they have a huge excess of dollars but the US produces so little they have nothing to buy with those dollars. The only thing the US can realistically offer is land, if you ban it it will only accelerate the collapse.
Which is exactly the problem: wealth inequality can't be solved by fixing wages.
Asian or "factory" countries (not necessarily from Asia but for illustration) have an "artificially" held minimum wage, which indirectly subsidizes the US minimum wage. This is happening to all wages not just minimum wages mind you, so the market needs rebalancing. Wages need rebalancing, taxes need rebalancing, but most wages, including the minimum wage need to come down (in real terms not necessarily in fiat terms).
Wages in the US are artificially high because of the dollar's position, but the US needs to either a) match the wages of the countries producing similar stuff or b) increase productivity and value to the levels of countries like Germany.
Since b) requires decades in factories, supply chains, trade agreements and most importantly training in actually producing things which means science and engineering, exactly the occupations an increasingly large portion of the US population has been taught to abhor, it is very unlikely to happen. The US has spent the last decades destroying all those things, so the only real option is to sadly let wages fall to levels markets are willing to pay for. It will bring a lot of suffering but is the consequence of decades of mismanagement and complacency, and it is unavoidable so it will either happen by will or by force. And we know it won't happen by will.
Of course there is always c) keep forcing the rest of the world to pay for the US standard of living while they themselves live beneath their means, but that is the actual problem now so how much longer can it last?
Now that he's not there other willing people will have the chance to apply to those subsidies aware of the new regulations and the change in direction the state is taking.
Because the government will not always be on your side, as 2020 demonstrated so well what many peoples outside the US have know from experience for decades.
10 years of debatable so-called-crimes with crypto VS at least 5000 years of wars, crimes and corruption with gold and government money...which side are we supposed to be on?
The end of the gold standard in the 70s meant the US could "afford" to fight infinite wars by just printing dollars and passing the real cost to the rest of the world, that is why the US is now the world's biggest borrower nation when it used to be the world's biggest creditor nation. The current state of endless military interventions is only possible because of the huge deficits in the US that are not possible with hard money.
People, and state economists, have confused inflation and deflation so much for their propaganda that right now is almost imposible to have a discussion around it primarily because different people don't mean the same things when they use those words.
Is the inflation you talk about consumer price inflation? is it assets price inflation? or is it money supply inflation? is the deflation caused by increases in productivity or is it caused by decrease in demand? Is inflation a product of regulations? of corruption? or was it caused by central banks and politicians' stupidity?
Those are all very different situations that require very different approaches, but because the "inflation-good deflation-bad" mantra has been repeated for so long (without any actual proof!) idiots now can't see past it, and think it's fine because they call themselves economists.
> Bernie Madoff doesn't get to print his own currency, you see why that's different right? You know who does though? Tether.
As I said, you don’t understand money. Currency is not wealth. Purchasing power cannot be printed, despite what MMT claims real wealth has to be produced using real resources. You can print all the dollars you want, in fact, that is exactly what the monopoly board game creators do.
> Paying. Lending implies that it has to be returned, it does not.
As I said, again, you don’t understand what money is. Under the current system all money is debt. And governments have no purchasing power to give but what they confiscate from citizens via taxes in the present, or take via inflation from the future. Either way, canadians are paying those $2000 back.
> Inflation has been in a tightly controlled 1-2% range in the US since the 1970s. They are. So forgive me for not giving a bunch of un-elected, un-accountable randos with commit privileges and a narcotics trafficker the steering wheel lol.
Which is why the FED came out saying they are gonna increase the rate of inflation that has actually been lower than reported all these past years right? The inflation metrics do not represent real inflation and even the FED admitted it, nor do they capture the wealth inequality even if they did. The riots on the streets, the uncertainty, most americans living paycheck to paycheck, miles of lines at food banks, most americans not having even $400 in savings, all signs of how the experts are such experts at managing the economy right? Not even 1 week of trouble could handle this wonderful economy when covid started they had to print trillions to bail out mega corporations. Such a well managed economy right?
> Who is "our" and why does one have anything to do with the other?
You, the one that claims having a printing press and growing gdp faster than inflation means governments will outrun debts. Don’t shill magic beans.
No, you repeated propaganda that told you to think you did, but as with the rest of your “points”, too many lols very little substance.
> that’s what happens when technology increases productivity.
Not when, technology ALWAYS increases productivity, that is the point of technology. Deflation is inevitable because productivity increases are inevitable.
And the poor have benefitted immensely from deflation, despite central banks doing everything they can to rob you of its benefits. More people than ever can now afford to eat meat, or drink single malt scotch, or whatever. More people eat lobster now than in any other time in history, that is the power and benefit of deflation.
> If economic growth outpaces debt growth then it does not ever have to be paid back.
Bernie Maddoff said the same thing. He also tried to create a perpetual motion machine.
> Canada has been paying everyone $2000/month this whole time)
Canada has been lending everyone $2000/month this whole time.
> Bitcoin cannot and will not change the wealth gap when it’s overwhelmingly spoken for already.
Again, you don't understand what bitcoin is, nor money apparently. People don't stash money away, not all of it anyways, and specially not when its inflation rate is limited (as in there is not a lot of excess to stash like right now), they use it to buy stuff, to pay for stuff, to invest in stuff, they enjoy it, that is why you want money in the first place! Money is, was and always will be exchanged, which means it changes hands. Odd concept, I know.
> backed on an inflation schedule created and managed not by economists or experts but a narcotics smuggler and a bunch of random GitHub contributors.
Yes, the "experts" managing the "economy" right now are doing such a great job.
> just taking your ball to the BVI isn’t a solution.
At some point, sooner rather than later by the looks of it, it will be the only solution.
> If you really want to change society for the better, run for office, don’t shill magic beans.
Weird advice from someone convinced we'll never have to pay back our debts.
> Those things got cheaper because of advances in supply chains and technology.
That is why things get cheaper all the time, yes.
> Why in the world would I ever loan to a small business if I could see gains just by holding the money?
The same reason you do now, which is the only reason you ever lend money: by lending it (to someone more productive than yourself of course) you gain more.
> You take your fiat and you invest it and nothing you say below the first paragraph matters.
If only.
The problematic part of a fiat system is not that is fiat, but that is in the hands of the government who knows not how to exercise constraint and inflates it at will to "pay" for things, more realistically, to promise to pay for things that if it had to actually pay for it will never be able to afford.
> The issue is that people don’t have money, and they don’t have wealth. This is strictly a social problem.
What do you think money is? Money is how societies choose to interact with each other; in a sense, money IS society, at the very least money is the first brick on which to build one. The government printing money and using it to pay for political favors (via military or natural resources contracts, monopoly markets, etc.) is at the core of the wealth gap.
> Replacing one inflationary currency with a worse distribution than a banana republic, with a different deflationary currency with a worse distribution than a banana republic changes nothing.
You don't understand what bitcoin is. Bitcoin's advantage is that the inflation rate is not controlled by the government, ie. they can't print money to buy stuff they can't afford, With bitcoin, governments can't print the wealth gap.
> why spend something now when you can spend less for the same thing later
That is nonsense. Sadly by repeating it enough people have started to actually believe it, and repeat it without looking at the evidence of the real world.
A cheap pair of jeans, adjusted for inflation was ~$150 in 1980. Now you can get one for $10. Did no one wore jeans for 40 years? Meat, it has never been so cheap IN HISTORY to buy meat, and if the trend continues, next year you could buy even more meat with the same money! (adjusting for inflation of course) Are you not gonna eat for a year?
That is not even talking about tech, were a cheap laptop 20 years ago adjusted for inflation was over $1000 and now is $300.
People prefer things now not later, that is why if you offer them $50 today instead of $100 in 10 $10 monthly payments most people pick the $50. The same thing happens when buying stuff. Sadly evidence is not as marketable as propaganda.
> An inflationary currency incentivises you to invest it, otherwise you lose real purchasing power. With a deflationary currency, you can just stuff it anywhere and see gains. You steal from tomorrow. As the material wealth of the world increases, our money supply should increase to match.
You don't understand the WHY of those gains.
A deflationary environment is the only real environment, that is why central banks are set up to fight deflation, because deflation is the natural order of things.
And in that real environment, gains in productivity are only possible because of savings, people invest not because of fear, the investments takes place because people truly believe the business proposals will produce VALUE, and hence REAL GAINS, which necessitates that people be not drowning in debt. That is why an inflationary system is a bubble system, it cannot be sustained on its own. It is a perpetual motion machine, or tries to be anyways.
Society has made a lot of progress, but the price has been an unprecedented amount of debt. In essence, we've mortgage the future, and at some point those bills will be paid either by will of by force.
Bitcoin is perhaps the most important project we'll see in our lifetimes.
The liberation of the most important asset in a capitalist society, money, from the tragedy that has been the current fiat system can not be over emphasized.
Money touches everything and is about time the market takes control of it, takes it away from the crony-states destroying the value of our savings, hence destroying our productivity, undermining the law at every turn in defense of a faux-egalitarianism when in reality that power has only been used to inflict (unwillingly or not) more pain to the marginalized sectors propping up a financialized economy that only exacerbates the wealth gap and radicalizes society to a dangerous level that sadly we all know where it ends up.
Bitcoin may not end up succeeding, but its fight is worthwhile, and necessary, and in the end inevitable, and because of that if the price now is 7 nuclear power plants we should pay it, as god knows we waste enough resources in lobbying, war and corruption already, because the cost to society of not doing it will be even greater in the future, and most probably, bloodier too.
Factories will need to adjust their prices, now you take that as you will, and if one is naive one can think it means executives will take a pay cut while workers do not, but in the end it mean less wealth for everyone, less money for taxes, less money for shareholders, less money for executives, and of course less money for workers. That is less wealth for the nation.
So yes, owners will take smaller profits, along with everyone else.