Essential Milton Friedman: Inflation: Expected VS. Unexpected

Milton Friedman was keenly interested in how price changes-or inflation-affected the economy. One of his key insights, which defied conventional economic theory at the time, was that using inflation to control unemployment was not sustainable. This finding revolutionized central bank policy around the world. Watch this video to learn more.

[@naj8785]

Just watched the Nov 2022 FOMC Meeting. If only JPow thought critically about his policies!

[@anubis1416]

I wish this went into the alcoholism analogy that he provided in Capitalism and Freedom. It explains how insidious inflation is.

[@joemahony4198]

I thoughts Phillips was an electrical engineer?

[@The1peagle]

He was both

[@iobject1421]

To bad The Fed has the duel mandate. It's making a mess of our monetary system.

[@Kriegerdammerung]

Yes, but Friedman never realised - or he avoided saying it on purpose - that unemployment guarantees low wages. So that example of Anna "negotiating" her salary was unrealistic and a fantasy: Anna is not in a position to negotiate a salary, she needs to take what's offered, otherwise there is a line of 50 women outside wanting that job.

[@Kriegerdammerung]

@@i0li0il0i I believe you, you are an exception. Can you tell me that ANYONE can negotiate their salary? this is not a matter of mentality, this is a materialistic problem: for one citizen employed there are more than one unemployed. Maybe a programmer who just quitted IBM can apply to many job offers, a top class worker, the 18-year-old person who just ended highschool, not bloody likely "I negotiated in McDonalds my salary" FANTASY!

[@Kriegerdammerung]

@@i0li0il0i "Play the game to win" since when working to live, have projects and pay the bills is a game?. "I believe this is a common mentality among those who feel like their victims. I felt sorry for them" so, an 18-year old who impregnated a teenager with twins and has to work his arse off has got a victim mentality? he is a victim of capitalism, of course, you are kind for feeling sorry. Capitalism is designed so not all have got the same level of opportunities. "is not a fantasy to negotiate a McDonald’s wage" there you err, IT IS. McDonalds doesn't want elite workers, they want weak teenagers who can be exploited to the limits for a shitty paycheque. They do sell rubish food, their policy must be a reflection of their product. And this extends to ALL branches of production, the goal is "more revenue" not "more quality for the customer". "you can set yourself up for 3-6 months or whatever down the line" you clearly don't know the concept of outsourcing. In my country, there are thousands of employees in the railway, energy, State, and many important jobs that are ten years in the "three month test period" and keep working like that, doing tasks that are not supposed to do. See the thread? more production, less costs. "So I negotiated a deal - that I worked for free as long as they trained me" so you did negotiate something against your favour, what kind of negotiation is that? the other option was the street? it wasn't more money than offered, certainly. "For you to suggest that the little people in a free society to have no power and that are just victims is an insult to them" a free society? one is free when they don't die waiting in a hospital, you are free when you can save money and go to Harvard with a part time job, not when you have to prove yourself worthy in an unfair contest for survival. Also, capitalism insults these people by putting them in that situation of misery. "We are not born having earned nor own anything other than what others have given us" the problem is the working class born has got WAY LESS than Donald Trump, who had 63M dollars as a gift, the Prince of Wales had all his problems solved since conception. There is a big problem called inequality that capitalism promised to solve like 200 years ago :/ "how to create wealth and prosperity" exactly my point. "Those up top could attempt to “fight poverty” by throwing money at the problem" they NEVER do, they ALWAYS take money from the people in the bottom of the social scale, they even give MILLIONS in subsidies to rich people. "First it starts by believing in yourself instead of adopting a victimhood mentality." the lowborn peasant of Feudalism that had to kill twenty militia - or a knight - to be himself knighted by his liege lord might have know this. It ended up being useless knowledge when his entrails were outside his body, by the swing of the enemy knight's blade, you know? it would have been better if there was a rule "all squires must be commoners" so said peasant would have had an easier time escalating the social ladder. The problem is - and always was - to climb the social ladder is VERY HARD, because the rulling classes wants it to be hard, they enjoy being the 1% at the point of the pyramid and don't like at all when someone from the low upjumps... because in time it can be the 2%... then the 3%... so they on purpose make it THE HARDEST. Your mental state (being it of a victim of an alpha male) means little against the material odds of this unfair world, mate. Have you seen the 2019 film Parasite? it beat Joker the Oscar, there is an army of unemployed people depicted there in the capitalist Korea. That lesson hits home: the army of unemployed and outcasts guarantees the lowest salaries possible. You might have negotiated your salary, and that may be a reality in your country, but you are a privileged and an exception, as any unemployed person could confirm.

[@ch3m1t4cr4ck]

@@i0li0il0i What a well-written text. I have enjoyed reading your arguments.

[@iobject1421]

Then she needs to prove WHY she is worth more, or she is not worth more than those other 50 at the job.

[@Kriegerdammerung]

@@iobject1421 Worth? if all the employees in a business work double, the CEO will not give them 100% extra salary, rather he will fire 50% of the workforce. People need to start knowing all about capitalism.

[@mivedi]

Wow,