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I have the feeling that the whole trade war starts from a pile of nonsense.
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apis:

--- Quote from: CatalinaWOW on June 02, 2019, 05:29:23 pm ---But it has some similarities to a zero sum game since total wealth changes slowly, and large short term gains by one group mean taking it away from another.  The real problem is that it is really, really complex.  And our understanding of economics might be compared to Faraday's understanding of electromagnetic theory.  We have some strong empirical relationships, but no theory of everything.

--- End quote ---
I was thinking more that if you suddenly double everyone's salaries (every household) the change will be eaten up by inflation, but maybe it doesn't apply in this case.

The factories become more productive as technology improves, but the extra profit doesn't affect the salaries of those who work there. So more wealth is produced, but the households might not get richer.
Simon:

--- Quote from: bd139 on June 02, 2019, 06:05:00 pm ---Our genetic makeup equips us with a lot of drones. What else are you doing to do with them?

That's how we self-organised as a species. This isn't some massive conspiracy of power.

--- End quote ---

that made no sense other than an amount of the population will be thick. Sure, but why scape goat them and why promote their multiplication beyond the useful amount? when having kids is seen as a way to make money and when people are not expected to be clever we just go backwards. It's not like the elite are that clever either these days, they were just born rich.
Simon:

--- Quote from: apis on June 02, 2019, 06:10:09 pm ---
--- Quote from: CatalinaWOW on June 02, 2019, 05:29:23 pm ---But it has some similarities to a zero sum game since total wealth changes slowly, and large short term gains by one group mean taking it away from another.  The real problem is that it is really, really complex.  And our understanding of economics might be compared to Faraday's understanding of electromagnetic theory.  We have some strong empirical relationships, but no theory of everything.

--- End quote ---
I was thinking more that if you suddenly double everyone's salaries (every household) the change will be eaten up by inflation, but maybe it doesn't apply in this case.

--- End quote ---

You don't even need to double it. everyone has housing costs and food costs and other basic needs. Once you cover those you have disposable income left. I realized that something was not right with my finances so i sat down and made a spreadsheet. i worked out that what I make every month minus my basic needs (including stuff i should save for like my next car or boiler for my house) i am left with £150. So if my employer gives me the equivalent of another £150 per month my prospects are much better, i can enjoy myself more, I can save more i can invest in education or whatever the hec I like. They have not doubled my wages.
RoGeorge:

--- Quote from: apis on June 02, 2019, 04:59:36 pm ---...an inflation goal of 2%, i.e. the cost of bread go up 2% every year...

--- End quote ---

Take this as a side question, like a poll (unrelated with "inflation", or "economical growth" or whatever, only from a pure mathematical standpoint.

Let's say we have a constant growth of "something"at about 2% every year (or whatever x% every year, relative to the previous year, x doesn't matter).  The name "constant" growth makes people think this is a linear function, with constant growth, like a straight line, or is it?

Q: What kind of function is an year over year (YOY) constant growth?
A: An YOY constant growth is NOT a constant growing type of function, it is an EXPONENTIAL growing type.

For all the uncertainties in the world, a thing is certain, exponential growth is UNSUSTAINABLE in a finite world.  Yet, we plan for it!  YOY revenue growth, YOY inflation growth, YOY whatever.

*Anything* with an exponential growth is guaranteed to fail in the long term, from cancer, to exploding stars, to economic growth or inflation.

IDK, the world seems crazy.  :-//
 ^-^
apis:
Imagine a mini world that only have bread as a commodity. There workers get paid a certain amount which lets them buy enough bread that they stay healthy. Now double the salary of everyone and people will be able to buy twice as much bread, but the amount of bread produced is the same so what happens is that the bread prices double. (What happened to the money??)

If instead only one of the people get doubled salary, that person can buy double the amount of bread, but that is a very small change to the total, so the average doesn't change much and the bread prices only go up a tiny amount, but everyone else can buy a little bit less bread.
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