The Fed

[Martin Hash]

America has lots of slack. Retirement, or worse, a UBI, are the most dangerous things.

Can you expand on this? Are you for or against UBI?

Anything that reduces production while increasing consumption is dangerous, like UBI.

Huge retirement payouts have the added negative attribute of redistributing from the poor to the rich.

[GloryofGreece]

America has lots of slack. Retirement, or worse, a UBI, are the most dangerous things.

Why is retirement so bad in your view?

[Martin Hash]

Because money can be saved and money is often exchanged for productivity, people make the natural assumption that productivity can be saved, but it can’t. Every retiree could have $10 million in the bank, and they’re going to want to exchange that money for production in the future but if there’s only one worker per retiree, and the worker produces $2K/month and the retiree wants $10K/month in products, how’s that going to work out?

Another problem: the federal government can simply print money to satisfy its retirement obligations but State governments only have the $2K/month person to tax more.

[Speaker to Animals]

Because money can be saved and money is often exchanged for productivity, people make the natural assumption that productivity can be saved, but it can’t. Every retiree could have $10 million in the bank, and they’re going to want to exchange that money for production in the future but if there’s only one worker per retiree, and the worker produces $2K/month and the retiree wants $10K/month in products, how’s that going to work out?

Another problem: the federal government can simply print money to satisfy its obligations but State governments only have the $2K/month person to tax more.

The demand for the products and services will increase, the supply decreases as we move into the demographic winter, which means the prices for those goods and services will rise.

[Martin Hash]

Yes, because of rich retirees. Where’s that leave the $2K/month guy?

[Martin Hash]

The one great cause of inflation is when consumption exceeds production. When you have a world with 1000 times more money than there are assets, and the money is 90% concentrated in The 1% aristocratic Class, wow, that’s going to be a cold, cold winter.

[Speaker to Animals]

Yes, because of rich retirees. Where’s that leave the $2K/month guy?

He's more like the 10k/mo guy. This is the consequence of supply and demand.

Of course, the reality is that the government will tax most of that to give it to the retirees, because they will have the numbers and that's basically what "democracy" means.

[Martin Hash]

Yeah, retirees will have control of State Violence for the foreseeable future, barring revolution.

[Fife]

[Martin Hash]

Dude, I’ve answered this many times before, we COULD just print money. Taxes are to redistribute wealth.

I rarely find anyone who understands this but there’s no excuse for ignorance when I’m right here.