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Originally Posted by The Soup Nazi

 

Seriously though, you mention drinking water - are you referring to bottled water or all water you consume, as in "straight fom the tap"? If you're including the latter, what's the sitch over there - do they cut the utility right away if you don't pay the bill on time? I've read that my country is the only one in the world which enshrines the privatization of such a resource in its Constitution, thank you Chicago Boys and the Martian whore that shat you out.

no man, all water that is processed for consumption through labor and machinery and delivered via infrastructure or bottles is part of the national output, it doesn't matter if the government or some private concern purified and piped it. that is not the point. the point is understanding what is economic output. we drink puridied water, not money. we eat food, not money. public or private utilities, private or government farms, private or public heart surgeries, output is output.

in the case of a dildo, say it was a dildo made in china, the service of obtaining and delivering you a dildo domestically is part of the national output, even if the dildo itself was part of china's output. the retail service transportation etc is the local economic output. without that service, the dildo stays in china, out of reach and unable to satisfy. so, services are output too.

again, output, the production of goods & services, is what takes primacy over the medium of exchange/the unit of accounting. we need & consume OUTPUT. ultimately it can be bought, borrowed, or stolen, who cares, we need output to live. so, sticking quarters or crumpled up bills into whatever hole is not the same as sticking a dildo. which is why dildos are produced. there is demand for them, so there is a supply of them.

what we currently have is a mismatch between circulating money and available economic output. globally.

that is what causes inflation. the money is not matching the output. there are more dollars than dildos, and no way to further increase dildo production to match the demand, so the extra dollars are bidding up the price instead of increasing dildo supply. more dollars might command the production of more dildos up to a point, but past a certain point the factories just can't keep up, can' find workers, can't find more silicone, can't find more containers to ship their goods. which drives up the price of dildos for everyone, rich or poor. and the poor suffer more.

now there are other ways to take money out of the economy and lower inflation than adjusting the interest rates. taxes can do that too. like, rich people could be taXed so they stop snapping up houses and turning them into airbnbs, and bidding up the price of housing, for example. so houses would not go up in price so much.

and there are ways to reduce inequality through fiscal means, so as to shift the burden of inflation, like, say, offering economic incentives for the production of low income housing (increasing output thus satisfying demand).

but it's not in the central bank's power to levy taxes or drive fiscal policy

that's up to congress.