- Joined
- Jan 23, 2022
- Messages
- 1,750
- Points
- 83
Trump's economic plans could cause inflation: IMF chief economist
Source:-https://www.channelnewsasia.com/world/trump-economic-plans-cause-inflation-imf-chief-economist-4870351Firstly, may ALL know that IMF is NOT a charity organization. It is said that IMF is the lender of the last resort, funded by many of the rich. They are NOT doing charity when they lend money. Lent money NEEDS to be REPAID - in cash with interest or in kind.... Remember how Indonesia had to seek for help from IMF with a cap in hand?
Secondly, Inflation is BETTER than deflation/economic stagnation, as $$$ would be circulated- a key Keynesian principle.
a) USA is a fortunate nation like Australia. It has all the resources it needs for manufacturing, industrialization & services, with a highly intelligent & innovation labor work force, along with its 200+ years of Rule of Law & its democratic institutions.
b) It follows Free Market principles. As companies prospered thru internal made in USA products & services consumption, industries will be able to pay higher wages to its labor force. Should any producer, manufacturer or even a worker demand unrealistic wages & costs, the Free Market will come into play, as Americans are innovative to gain market share that high flaunting price fools presume Americans are morons.
Furthermore, with its Anti - Monopoly policies, such manufacturers or service providers will fail.
c) PrezTrump & his economic team had long realized such, & thus the need for tariffs to keep its economy sustainable, with jobs & tax revenues, than for Americans to chase after foreign cheap, seemingly awesome goods at 1st glance, but are of low quality standards compared to DETAILED American or German products for local & exports.
d) Deflation/Stagnation would mean that one's nation's products and services would find no buyers, regardless if local or imported made, as the reality is that with low or little wages earned, they would not be able to afford even a packet of Ramen noodles, let alone build a family, the building blocks of civilization.
Where did International Monetary Fund (IMF) Chief Economist Pierre-Olivier Gourinchas earned his degree? Uptron University???