| I agree. Here is the critical damage to American workers from money printing:
* Hourly pay rates are locked in when people are hired. Workers completely lose their negotiating power after being hired. "Sticky prices" in economic terms applies to workers salaries also. * In an ideal world, workers would job hop aggressively to move up their hourly pay rate. They don't for good reasons (for their company, for the economy, for other non-tangible reasons). * Having the M0 and M1 never grow is the ONE critical factor that MUST be there for workers to get their fair share of GDP growth. The economy growing and having a fixed M0 and M1 means workers get more buying power. Their negotiated locked in hourly rate when starting at the company can give them more buying power. In capitalism today, this is the ONLY way workers get their share of GDP growth. * When M0 and M1 grow, then workers (except the top 20% in demand) are robbed of getting their share part of GDP growth. * Workers are on a hamster wheel. Central Banks think they need to speed up/slow down inflation (compared to a frozen M0 and M1) causes the hamster wheel to speed up for workers to work harder for less and less. * 1801 to 1899. There was zero to -6% inflation across those ~99 years. Salaries doubled. This is how the working class gets their fair share of GDP growth. Today they are robbed by central banks. * Workers are robbed when banks get to "recapitalize" banks paid for by robbing workers (the bottom 80% of workers have nearly zero ability to demand their salary go up) |