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/biz/ - Business & Finance

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54050560 No.54050560 [Reply] [Original]

Whenever the purchasing power of a currency falls due to money printing, why don't wages rise by the same amount? If a currency loses half its value due to printing, wages should double, no?

Where does the missing value go?

>> No.54050584

>>54050560
immigrants

>> No.54050623

>>54050560
Inflation is called a sneaky tax for a reason.

>> No.54050757

>>54050584
this
demand for labor increases as new money comes into the system since businesses want to expand operations and hire more people, however the labor supply is increased in tandem in order to keep wages low

>> No.54051060
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54051060

>>54050560
>why don't wages rise by the same amount?
because the government is spending this new money they printed on resources,
they are basically stealing these resources from the economy, meaning there is less resources for workers to buy with their wages, so your wages aren't as valuable and the things you want to buy with your wages are higher prices.

tl;dr central banking is a scam and Libertarians were right

>> No.54051086

>>54051060
>>54050560
The simplest way to understand this is that there is less STUFF available.
It's supply and demand, when things are more scarce, the price goes up.

>> No.54051155

>>54051060
You know communists want to abolish money itself eventually right

also North Korea has no taxes

>> No.54052358

>>54051155
>You know communists want to abolish money itself eventually right
So? You seem to have missed the point.