My Roommate Thinks Earning More Money Will Fight Inflation
Lmao.
I was discussing price increase with my roommate yesterday when she dropped the following bomb.
“We get our salary indexed (understand: increased) every month because of inflation.”
I thought she was trolling, so I laughed.
- That doesn’t make any sense, I said.
- Yes of course, prices increase, so we earn more money.
- Prices increase because the volume of money is superior to the availability of goods and services you can buy with it. Inflation is a consequence of too much consumption due to money printing, so the only way to decrease it is to get people to consume less, not more.
- No, inflation is there due to the war in Ukraine.
She was so certain of what she said that I didn’t pursue it further.
Truth is, she taught me a very important lesson.
The More You Know, the More You Realize You Don’t Know
When I was 20, I thought I knew everything.
Literally.
You could hardly teach me anything because I knew.
