Hacker News new | past | comments | ask | show | jobs | submit login

Taking money from people who aren't spending it and giving it all to people who will spend it all immediately doesn't fix poverty. It just causes hyperinflation.



No it doesn’t. The Nordics don’t suffer from hyperinflation, in spite of their much larger welfare states.

Redistribution increases demand in the short term, but in the longer term production shifts accordingly to match. Which really is the whole point: Changing the economy to produce more of what ordinary people need.


> in the longer term production shifts accordingly to match

Isn't the long-run aggregate supply curve basically completely price inelastic?


I’m saying that production shifts to produce more of what poor people want (food etc) and less of what that rich people want (Lamborghinis etc).




Consider applying for YC's Spring batch! Applications are open till Feb 11.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: