• 1 Post
  • 29 Comments
Joined 2 years ago
cake
Cake day: June 17th, 2023

help-circle


















  • Not really. Most money is actually just numbers on a spreadsheet. This is because loans actually create money in a virtual sense. If you want to reduce the money supply, a better approach is to up interest rates, which encourages people and companies to reduce how many loans they take and pay off the ones they have.

    And yes, this is what the Biden administration did to reduce inflation, and it worked. At the start of his term it was over 8%, and at the end it was under 4%.

    Unfortunately, people don’t understand that reduced inflation doesn’t mean reduced prices. It just means the prices don’t go up as fast. They also don’t understand that negative inflation, i.e. prices going down, is actually terrible for an economy since everyone is then encouraged to spend as little as possible, reducing cash flow


  • They’ll take any extra taxes gained and put it into the military budget

    Trump is actually trying to cut the military budget too. Which is actually problematic because we have a lot of equipment (particularly aircraft) that is aging out and we already can’t develop and/or manufacture replacements fast enough