My simple solution to fight inflation is to increase the importation of Chinese cars.
With the Wuling Mini EV costing $5k and the average new car price in the US being $48k, boom, that’s $43k back into the pockets of ordinary Americans.
And guess who owns SAIC-GM-Wuling? That’s right, GM. So it’s win-win.
The US exported inflation to China with its economic strategy.
Xi just can’t be trusted to any great extent anymore given his behavior.
Ergo, non-China supply lines are now more expensive and China is getting hit with tariffs to avoid dumping.
Inflation in the US is not going away anytime soon.
I think they should dump away. The average American isn’t gonna care about Xi what’s his face when they see $15k SUVs at the dealership.
I couldn’t find a candidate who would let me buy a cheap Chinese EV. Clearly none of these guys realize how much of a climate emergency we have.
IFYP
Inflation isn’t really the problem. The ratio of wages to prices is what bothers people.
I don’t think your solution closes the price-wage gap.
But . . but . . . you’re saving 43 grand!
Imagine all the things I can choose not to buy with that kind of money!!
Inflation is too much demand for not enough goods so we need to eliminate demand. I say we eliminate every nonproductive body over 75 and intern twenty percent of workers in camps where we can control what they demand. Managing inflation from the top down is easy peasy.
Might help with housing too
The over 75 crowd will take care of itself in the near term.
If you REALLY want to curb demand you need to get rid of the non-productive humanities studies population. Imagine how much could be saved in University costs and the increased productivity from not having DEI trainings.
I would also say getting rid of most lawyers would be terrific. No more greenmail civil suits, a lot less expense on CYA signage and trainings. But they’ve been in place for a lot longer than DEI. Diging them out would take some real work.
My solution is 50% off cheeseburgers at McDonalds.
Sorry, that is not how inflation works.
Take an Econ course and get back to us.
And even with the Trump Tariffs it’s only $10K.
no, inflation is the expansion of the money supply leading to devaluation of each dollar. the idea of supply/demand shifts leading to inflation is a delusion that economists have force-fed the naive public. my solution for inflation is for all the stupid people to get neutered so they don’t continue to perpetuate this nonsense.
I think most economists know Page 1 of any Economics Textbook.
(Awaiting a correction about the page number in 5, 4, 3,…)
How does that shrink the money supply?
Don’t get me wrong, I think it is a great solution, just not for inflation.
Ooooh coool. Then it easy we just take all the money from the 10 richest people convert it to cash then burn the cash. If that’s not enough we just keep working down the list until we get it under control.
most economists aren’t practical, they’re theoretical. They’re Keynesians, and therefore believe that government should regulate a money supply, and that there is some “optimal” tax rate that maximizes a country’s GDP, and all that other bullshit.
Read David Stockman’s book The Triumph of Politics for a clear example of how inflating the money supply doesn’t change the relative value of the goods being exchanged, it only changes the value of the medium of transfer used to exchange them. The example is when the American army went into Afghanistan in the 80s, they took $100 bills with them to bribe the tribal leaders. Immediately having a couple of Benjamins was very valuable - you could buy a whole bunch of shit with one. Pretty quickly, though, as more and more $100 bills got into the local markets (i.e. “inflated money supply”), the dollars themselves became overabundant and therefore each one was worth less. Eventually a bill would only buy a cup of tea, the price of which in local currency hadn’t changed over the last two years.
This for me has been the shining example of the true cause of price increases - it’s not prices themselves that are inflated for no reason. It’s that the dollars chasing the same goods that were produced before are actually each less valuable, requiring more of each to exchange the same amount of value as previously.
So every time I hear “Prices are going up - again!” and the Fed wrings hands and pretends to actually do something, I just remember that prices are the downstream signal of the actual problem. That way I can chill out, watch everyone else lose their shit, and reflect that eventually we all die and this is perfectly meaningless.
I just want there to be fewer stupid people around.