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If you don’t see that our deflationary world is becoming an inflationary world, you’re just not paying attention.
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Student loan debt is crushing millions of families. That’s why I’m calling for something truly transformational: Universal free college and the cancellation of debt for more than 95% of Americans with student loan debt. Read all about it here: medium.com/@teamwarren/im
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I don’t get how handouts to the 1% don’t fuel inflation but handouts to the bottom half do. Genuine question. Is there a structural trick used? Does QE fueling stock buybacks leading to wealth appreciation for stock owning class work differently than forgiving student debt?
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Yes, financial asset price inflation for rich and experiential non-asset price inflation for poor. The former is privileged (persistent, fungible, inheritable), while the latter is none of those things. The latter is “counted” as inflation, while the former is not.
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Correct. Financial asset inflation has no (direct) impact on wages/prices as there’s no consumption change. It’s sterilized (mostly) in market-world. Experiential non-asset inflation leads to dramatic consumption increase in real-world. See healthcare as example.
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If houses and stocks go up in price, people and politicians clap 👏🏽 and economists argue there’s a wealth effect, a pass-through of wealth into the economy. If the price of bread goes up because people fight to get some bread to their stomachs and other basic goods... fucked
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