Free Market theorist - eviltoast

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  • 100_percent_a_bot@lemmy.world
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    11 months ago

    One additional factor is that there is only a slight delay for prices to catch up with inflation but a major delay for wages to rebound. In a roundabout way inflation allows companies to cut wages without it feeling as shitty to the workers. This is why the central banks throw on the money printer when they fear an incoming recession.

    This might seem unfair to the workers but is usually the preferred solution over tons of people losing their jobs.