How are they affording wars?
Inflation soars to nearly 80% in Turkey as food prices double
11–20 of 24 posts
Re: Inflation soars to nearly 80% in Turkey as food prices double
#12Incase anyone's wondering why, it's because Turkey's money printer is stuck on the brrr setting.
Re: Inflation soars to nearly 80% in Turkey as food prices double
#13Incase anyone's wondering why, it's because Turkey's money printer is stuck on the brrr setting.
So the same as America's then. Great news.
Re: Inflation soars to nearly 80% in Turkey as food prices double
#14anyone has any theory on whether turkey is special case, or if its neighbors are going to follow the same path ?
Planet Money did a good episode on this:
https://www.npr.org/2022/04/06/1091287991/turkeys-runaway-in...
Basically, the president doesn’t trust interest rates because it means some people can’t pay back loans.
Re: Inflation soars to nearly 80% in Turkey as food prices double
#15Re: Inflation soars to nearly 80% in Turkey as food prices double
#16Incase anyone's wondering why, it's because Turkey's money printer is stuck on the brrr setting.
So the same as America's then. Great news.
Not at all.
I don’t understand how people can keep fear mothering about the US’s “money printers” with a straight face when the USD is stronger than its ever been and there is no indication in any of the currency markets, bond markets, etc that it’s about to change.
The Fed is still independent. And the people running it are a heckuva lot smarter than nearly everyone that Monday Morning QBs their decisions.
The Turkish “Fed” is not independent at all. Every time the finance minister in Turkey wanted to make the correct financial decision over the past couple of years (ie, raising rates), Erdogan fired them and hired someone else, until he reached the point that the only person who would take up that job was a family member with no economic training.
Re: Inflation soars to nearly 80% in Turkey as food prices double
#17Earlier quoted context omitted.
Why is this argument never in the other direction? There’s just not enough money to make people into millionaires and billionaires. It’s always trouncing on the lower classes. Am I going crazy or are we collectively witnessing the birth of a neo feudal class? I wasn’t around during the aftermath of WW2 but people believed in democracy and liberal values without stuffing the coffers of the rich right?
Well, it doesn't work in the other direction. If you have a million dollars you have enough to make one millionaire. But you don't have nearly enough to raise a million people's wages.
You’ve got it completely backwards. At least for the US.
The top 1% in the US has 32% of the wealth. The next 9% has 37% of the wealth.
So basically the top 10% have 70% of the wealth and the bottom 90% have 30% of the wealth.
You can literally double the bottom 90%’s wealth by simply redistributing half the top 10%’a wealth. And the top 10% would continue to remain among the wealthiest human beings in the history of human civilization.
But if you were to redistribute all of the bottom 90%’s wealth, you wouldn’t make even a dent in anyone’s situation. And that’s even before we consider the massively declining marginal value of the dollar for a billionaire vs someone in the bottom 90% of the US economic system.
Re: Inflation soars to nearly 80% in Turkey as food prices double
#18Not a big deal for Erdoghan, he just needs to choose a new victim to move people attention away. Kurds, Greeks, Armenians who is next?
Re: Inflation soars to nearly 80% in Turkey as food prices double
#19The world is built on the backs of low income workers. There's just not enough money in the world to pay everyone high wages - when you increase wages, you increases costs, and then those wages don't help: AKA inflation. Either we continue to subsidize the world with low income workers, or we massively increase automation. It's crazy - there were times we were predicting that people would not need to work, and we'd n…
Why is this argument never in the other direction? There’s just not enough money to make people into millionaires and billionaires. It’s always trouncing on the lower classes. Am I going crazy or are we collectively witnessing the birth of a neo feudal class? I wasn’t around during the aftermath of WW2 but people believed in democracy and liberal values without stuffing the coffers of the rich right?
You completely missed my point.
If you pay the lower income people more, then things cost more, and they have to pay more to get things.
Which makes their income increase worthless.
You've increased the number in their bank account, but have made zero change in their situation.
And, to answer your question, the reason it doesn't work the other way is that the wealthy don't make anything, so their income doesn't change the cost of goods. (At least not directly - they make money on capital, so their income essentially acts as interest.)
Re: Inflation soars to nearly 80% in Turkey as food prices double
#20Earlier quoted context omitted.
Well, it doesn't work in the other direction. If you have a million dollars you have enough to make one millionaire. But you don't have nearly enough to raise a million people's wages.
You’ve got it completely backwards. At least for the US. The top 1% in the US has 32% of the wealth. The next 9% has 37% of the wealth. So basically the top 10% have 70% of the wealth and the bottom 90% have 30% of the wealth. You can literally double the bottom 90%’s wealth by simply redistributing half the top 10%’a wealth. And the top 10% would continue to remain among the wealthiest human beings in the history of…
You misunderstood my point.
Imagine you did that, you doubled their money, and you made it permanent - all the bottom 90% get a huge wage increase.
What does this do to the cost of goods? It makes everything more expensive! So they are no better off that before.
That's basically what is happening today - wages are going up, and everything costs more.
"Wage Growth in the United States averaged 6.20 percent from 1960 until 2022, reaching an all time high of 15.31 percent in April of 2021"
"Wage growth for workers in lower-wage industries has slowed from 11.4% in August 2021 to 7.6% in January 2022."
The worst part is that inflation is growing faster than wages, presumably because there is more going on than just wage growth.