Sunday, January 26, 2020

Whats wrong with the economy in 25 words or so

I googled the cost of finance and cost-push inflation

Google turned up this, from investopedia:
Cost-push inflation occurs when overall prices increase (inflation) due to increases in the cost of wages and raw materials. Cost-push inflation can occur when higher costs of production decrease the aggregate supply (the amount of total production) in the economy.

Cost-push is "due to increases in the cost of wages and raw materials". Finance, apparently, has no part in it.

That kind of thinking prevents us from solving the cost problem that is killing growth.

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