Originally Posted by
wibblefox
An average person <> The average person
If you base your argument around assuming people will act a certain way, you should be able to show that the behaviour is at least on average correct.
Do you do this on purpose? If I were a less agreeable person this entire post would just be me quoting myself to you.
You said it wasn't realistic that this average joe invested in stocks. I told you it was and that I knew average joes with the same behavior. The entire example was a cherry on top of my argument that inflation drives investment, anyway, so again: This is irrelevant.
Originally Posted by
wibblefox
For many companies that means going out of business or outsourcing, as we have seen many times in the past.
As so is how the cookie crumbles. That's the free market for you. I'm all for supporting businesses all we can, but throwing the people under the bus because companies are supposed to be some sort of protected class is idiotic.
Originally Posted by
wibblefox
Again such behaviour is not realistic. Even people that do save will not save indefinitely.
Though I think that inflation is inherent in the situation not resultant of specific spending habits...
Any behaviour that devalues currency steals from savings. I should think you know enough to answer your own question.
mv=pq
Total money supply * average number of times a dollar is used = average price of consumer good (sold) * total number of consumer goods sold
If M increases and V decreases, P, price, stays the same. Inflation doesn't happen. If M increases and Q increases, P, price, stays the same. Inflation doesn't happen. Ergo, if M increases then inflation happens as a result of the spending preferences of the country. Doubly so, since fractional reserve increases the effective money supply as people want to spend & go into debt more.
Very very basic macroeconomics, trying to troll here just makes you look silly.
Originally Posted by
wibblefox
Thanks for the irrelevant comment
Only as irrelevant as your moral argument against my argument that inflation drives investment.
It also goes to show that since debt can be taken on and that you can retrospectively 'save' at the same time you reap the benefits of past investment, this is all kinda meaningless.
Originally Posted by
wibblefox
Of course profit margins don't have to remain static, but you should realise that what you are doing is objectively bad for businesses. Profit made by the company will be put to use, it's not just sitting there. What's more you again fail to realise that not all factories can just eat loss like that.
Originally Posted by
wibblefox
Of course they don't work, which is why I'm telling you that it is wrong to say that factories can infinitely increase productivity or infinitely decrease spending.
It is unprofitable at best, and the company will move elsewhere or dissolve.
I'm sick of telling you that I agree and that this argument has no bearing on absolutely anything I've argued, so I'll just stop replying to stuff like this.
Originally Posted by
wibblefox
You based your scenario of a sale of 20 loaves off a town of 10,000?
rofl, no I based the first scenario off the scale of a town of 10,000. As in the very first one, as in person A.
Originally Posted by
wibblefox
Sure, if you assume that business will pick up then it all works out..........
...what are you even arguing against?
first there was demand for 20 loaves, and then there was demand for 50 loaves. He could always have made 50 loaves if he wanted to, but they would have went to waste and he would have lost money. Productivity increased because the demand for product rose. Ta-da.
Originally Posted by
wibblefox
where exactly is the link between unions demanding higher wages and increase in business? There is none, that's just fantasy....................................
......................................
I'm sorry but it's way too late for me to bite (almost 4 am!!!), ask again tomorrow
Originally Posted by
wibblefox
I don't buy that the baker could have been selling 50 loaves all the time but just couldn't be bothered lol.
He couldn't have pig, nobody would come in the doors because meanies like you were shittalking his business
meanie