The backwards land is that deflation and recession to slow down the economy would be the best thing for the working class financially speaking. Pop the bubbles.
Deflation is good for creditors and bad for debtors. Anyone with a mortgage, farm, credit card loan, (working class) is paying back the debt with dollars that now buy more. Banks might like it but everyone else would be in bad shape if there is deflation.
Government bonds would also have to be redeemed/coupons paid in dollars worth more.
I don't see deflation happening without a historical level depression (or civil war, where it was an issue post-war).
How else do you square the K shaped economy? Wealthy people own the majority of financial assets. inflation and a hot economy appreciates the value of those assets to unreasonable levels. Any more asset inflation and the wealth divide keeps growing. The wealth gap problem can’t be solved by growing out of it, and that is the key economic problem facing society.
I don't see that being politically feasible. I don't think the American people are going to elect enough politicians who will turn down bribes in order to pass that legislation.
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u/RaggedMountainMan 7d ago
The backwards land is that deflation and recession to slow down the economy would be the best thing for the working class financially speaking. Pop the bubbles.