7/17/2008

Myth 185 - Causes of inflation

As I type this post my fingers are trembling with joy. It is such a profound idea that I have come across since an apple fell on Newton's head. Even in the darkest hour of the night, the thought of it could make me see light everywhere. I could even feel the surge of orgasmic pleasure rising in my veins. We have heard about imported inflation. And this could be managed somewhat by maintaining a strong currency. The raising of fees and prices of goods and services will not cause any inflation. This is true. You just pay more that's all. What then causes inflation? It is the workers' salary. The workers form the bulk of any population. Controlling their spending power is the key to inflation and controlling inflation. And the easiest way is to make sure they don't get any pay rise. Freeze their wages and you will freeze inflation. If the wages of workers is frozen for 10 years, we will have inflation controlled, or no inflation, for 10 years. The simplicity and enormity of this powerful idea is stunning.

3 comments:

Mockingbird said...

But if the gahmen freezes the people's wages, wouldn't the people revolt against the gahmen. If our wages are freezed, it might even mean we can't afford exotic holidays anymore. Or even if we fly to those faraway place, we might not be able to splure as much.

Anonymous said...

Peasants do not need to understand what the rulers are saying, just take it as the tooth. After all, many tooths have been trotted out (sorry for repeating) eg GST is to help the poor or ERP is to help husiness etc. The tooth, the simple tooth, and nothing but the tooth.

redbean said...

everything depends. political theories and formula are also very flexible. in some conditions it works, in some it won't.