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beefcat, to mildlyinteresting in the FDA is considering a ban on menthol cigarette sales
@beefcat@lemmy.world avatar

go ahead and look at the comment you were replying to

beefcat, to mildlyinteresting in the FDA is considering a ban on menthol cigarette sales
@beefcat@lemmy.world avatar

putting a tax on something is not the same as prohibiting it.

beefcat, to upliftingnews in U.S. inflation falls to 3%, lowest level in more than 2 years, as price pressures ease
@beefcat@lemmy.world avatar

Consumers wouldn’t, because they still need things like food and shelter, which they already spend most of their income on. But corporations and wealthy individuals absolutely would. In a deflationary environment, the value of money sitting still in a big savings account goes up while the value of goods and assets goes down. They shift their wealth into whatever vehicle they feel will provide reliable growth.

This was one of the problems we had during the Great Depression. Nobody was investing in new or expanding businesses, so no new jobs were being created.

beefcat, to upliftingnews in U.S. inflation falls to 3%, lowest level in more than 2 years, as price pressures ease
@beefcat@lemmy.world avatar

The idea is that a small predictable rate of inflation discourages people and financial entities from hoarding cash and instead invest it in places that make the economy move.

This has been the prevailing theory since the end of the Great Depression, and it’s generally worked out pretty well.

The caveat to this is that you need wage growth to remain in step with inflation, otherwise you are just screwing working class people over.

beefcat, to upliftingnews in U.S. inflation falls to 3%, lowest level in more than 2 years, as price pressures ease
@beefcat@lemmy.world avatar

Some prices have gone down, but you don’t want a deflationary economy.

Ideally what you want is a ~2% inflation rate, and wages that increase in tandem. The US job market has remained incredibly resiliant throughout all of this, so hopefully it is close to balancing out.

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