A 10-minute short film produced by the MGM studio to be played in movie theaters across the country. Pete Smith explains (with graphs!) how FDR’s inflationary policies are going to help the economy. Found via FinanceProfessor.com and BusinessInsider.com. Here is the related IMDB article Inflation (1933)
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This film should be titled, Inflation is our Friend. Loved it!
Inflation supporting propoganda fed to you with your own tax dollars. The hole in this story is that wages are not as dynamic as prices, i.e., Wages do not rise and fall at the same pace as prices. Prices fall, wages fall. Prices rise wages stagnate. Example, current corporate employers do force/employment reductions then rehire at wages 20%-30% lower, or contract out the work. An employee will get locked in at a lower wage, not wanting to look for other employment for security reasons, and the employee struggles to get a 2.5% pay increase. Meanwhile, inflation kicks in and next thing you know your wage is equivalent to a high school student working as a part time host at the local restaurant.