Quack Economics

13 10 2008

via Web’s Random Ideas.

Money from nothing just doesn’t solve things.

Even this scenario is better than the “bailout” that has been announced for US Wall St.

Everyone in Ducktown gets rich, so $500 bus fairs are only a problem in terms of increasing back pain (chiropracters rejoice).

But artificially inflating only the already wealthy, you create the same inflation, but not everyone gets caught up to the new price scheme. Prices will rise (or stay the same), but wages will not rise (or more likely fall, at least on an average thanks to growing unemployment). Less insanely wealthy people is a good thing, as prices will have to fall to what people can afford. As long as enough people are still willing and able to pay high prices, prices will remain high.




One response

20 10 2008

Thanks for the mention! I hope you enjoyed the video.

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