I really thought many people wouldn't realize the correlation between
production, money supply and inflation, but I would have expected any
college graduate to understand it when it was discussed.

I guess I was wrong.

"P Fritz" wrote in message
...

"Starbuck" wrote in message
...
Doug,
The marketplace responds fairly quickly to inflationary pressure, just
ask
Germans who lived during the 40's how quickly the marketplace reacts to
an
increase in money supply without an increase in productivity.

Are you suggesting it is ok to create rampant inflation in an effort to
try
to give the appearance of helping the less fortunate? After all, the old
on
fixed income have lived a good life, it is more important that we give
the
appearance of helping the poor.

What is scary is that there are people like him who think that prices
would
stay the safe when wages increase.



"DSK" wrote in message
...
Starbuck wrote:

Doug,

If we raised everyone salary 25%, the net income gain in spending
power
would be 0%.

???

You should try and grasp the concept of "marginal rates of change."

If everybody's salary was raised 25% in an instant, and prices remained
constant *at that same instant* then there would very very definitely
an
increase in "spending power." It would taper off as prices rose, but
probably would take a while to reach 0.0 if indeed it really did
(increased spending tends to increase investment in production which
tends
to increase technology etc etc).

It's not quite the Red Queen's Race, but it's close.

I can see you're another economist wanna-be... did you get your
tremendous
expertise from the same "Everything You Need To Know About Economics In
One Easy Lesson" website as that last joker?

DSK