http://www.visualizingeconomics.com/2009/07/30/inflation-in-1933-explained-by-mgm-studio/ Making the "Invisible Hand" Visible Fri, 05 Mar 2010 00:29:30 -0500 http://wordpress.org/?v=2.9.2 hourly 1 http://www.visualizingeconomics.com/2009/07/30/inflation-in-1933-explained-by-mgm-studio/comment-page-1/#comment-41601 The Blog of Record » Blog Archive » Great Depression Era Propaganda Film: Selling Inflation to the People in 1933 Tue, 11 Aug 2009 05:42:33 +0000 http://www.visualizingeconomics.com/?p=472#comment-41601 [...] (Via Visualizing Economics.) [...] [...] (Via Visualizing Economics.) [...]

]]> http://www.visualizingeconomics.com/2009/07/30/inflation-in-1933-explained-by-mgm-studio/comment-page-1/#comment-41577 sweep Fri, 31 Jul 2009 14:09:43 +0000 http://www.visualizingeconomics.com/?p=472#comment-41577 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. 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.

]]> http://www.visualizingeconomics.com/2009/07/30/inflation-in-1933-explained-by-mgm-studio/comment-page-1/#comment-41576 Sharon Fri, 31 Jul 2009 13:11:04 +0000 http://www.visualizingeconomics.com/?p=472#comment-41576 This film should be titled, Inflation is our Friend. Loved it! This film should be titled, Inflation is our Friend. Loved it!

]]>