@GhostOnTheHalfShell @ChrisMayLA6 Inflationary pressures arise when there's too many currency units chasing too few goods and services. That's when businesses start raising prices by a few pence here and there, because it profits them. The net effect is inflation. It's a response to increased aggregate demand (more people buying more stuff). You can't add to aggregate demand by making the rich richer, because they couldn't spend all their money *before* they got richer. Nothing changes.

@ApostateEnglishman @ChrisMayLA6

That is the mainstream theory, but its assumptions are so short of reality, that it is fallacy of omission.

Inflation comes from those who can raise prices. Austerity comes from those who cannot.

Which is to say that if a large company decides to raise prices, the consequences cascade throughout the economy, and those that can raise prices will, and those who can’t inflict austerity by cutting back somewhere else.

https://economicsfromthetopdown.com/2022/12/15/inflation-everywhere-and-always-differential/

@GhostOnTheHalfShell @ChrisMayLA6 Okay, we don't disagree. So it's a question of who has the deficits, and that's a political question (read the alt-text). 👇

ALT