Spyke

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We won’t fix inflation while economists stay in denial about its causes

We are generally taught that there's a balancing act going on between inflation and interest rates, but that's not really true. There's a balancing act going on between inflation and unemployment - and interest rates are the way to control unemployment. When the government says that inflation is too high what they're saying is that too many people have money and the way to fix it is to get a few tens or hundreds of thousands of them fired.

cars

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What driving concept you feel that most drivers don't understand?

Tailgating doesn't get you there faster. Most highway accidents would be avoided if people would just leave some space, and then we wouldn't get stuck in accident traffic jams for hours.

Somewhat counterintuitively, traffic will flow better and you'll get places faster if you just leave some space (and you'll be safer and use less fuel as you won't be always on the accelerator and brakes)

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We won’t fix inflation while economists stay in denial about its causes

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https://www.abc.net.au/news/2023-06-25/the-rba-wants-more-unemployment-lets-applaud-it/102506500

It's well known that interest rates cause the unemployment level to rise, the RBA governor even covered it in a speech recently (https://www.theguardian.com/business/2023/jun/22/rba-reserve-bank-australia-unemployment-inflation) and they have a page explaining it (https://www.rba.gov.au/education/resources/explainers/nairu.html).

Even though it's been suggested and documented that our current inflation issues are driven by corporate price rises and lingering pandemic supply issues, the government outsources the responsibility for interest rates to the RBA - but the only tool they have is monetary policy.

Related: it's shown that full employment benefits everyone, but it benefits the least advantaged most https://grattan.edu.au/news/when-unemployment-falls-disadvantaged-workers-benefit-most/ so there really is a dichotomy between corporate profits and social wellbeing.

aww

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Just look at them!

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Yeah, the house I grew up in had so many frogs that you couldn't watch TV or make a phone call at night, it was like having the worst tinnitus every night. Frogs are cute, but that was too much!