TottsHow does, "Earning a salary have an impact on #inflation" ???
This is what #Aitkins said today on #BBCLaurak
Gabriel Pettier@Geri naive understanding of supply/demand, if people have (more) they have more buying power, so they buy things they would do without otherwise, that increase demands, so unless supplies grows, prices grows, because supply side can increase price to match newly available money.
This is interesting. I don't fully understand it myself
https://coppolacomment.substack.com/p/corporate-profits-dont-cause-inflation
@Geri the point about aggregate demand being sustained is interresting, indeed it means than "one way or another" people have enough money to keep buying stuff, instead of cutting back. But this doesn't dig more on how much of that is provided by government help, i don't know how it is in the UK, but if the government helps people paying rent, then it's contributing indirectly to the profit of landlords, and if these ones are driving inflation, then taking these profits might help.
@Geri and we must also think about debt, if demand is inelastic (people *have* to keep buying, like energy, food, rent…) then people might be taking on debt to sustain their lifestyle, and again allowing profits to persist, even if people cannot afford the current prices.
in short, while the point is interesting, i think it's a bit fast and lose about deducing that "most people have enough money", that might need further checking.
@tshirtman you raise some useful and interesting points about the recirculation of money, some of which, such as food and rent, are necessities.
I agree throughout. Xxx