Adam Smith was actually far more progressive than the neoliberal/capitalist propaganda like to portray him as. They basically cherry-pick his work and present it out of context to support arguments that are actually contrary to many of the points he was making…
When I said “classical economic theory” I meant more like “conventional economic theory,” so encompassing the absurdities you mentioned here.
Like, they’ll say “Economies naturally cycle through periods of growth and degrowth” to justify periods of inflation, but then when those periods of inflation are artificially extended to further enrich the shareholders (and artificially inflated, even!), they’ll conveniently ignore the whole “periods of degrowth” side of the coin, and if anything even remotely has a chance of causing deflation, it’s denounced as an anathema because “it would cause a recession!”
Corporations benefit from economies that harm consumers. Corporations should never be given control over economic policies. However, neoliberal economic policies are basically designed to help the corporations while hurting consumers. And it’s all founded upon conventional economic theories.
That’s how you end up with a Federal Reserve that says things like “Unemployment is a good thing, because if everyone has too much money to spend on things, it could cause inflation,” yet never addresses the standard business practice of increasing prices while cutting costs all to make “number go up” so that the shareholder value increases each quarter and the C-suite can get bigger bonuses…
They say things like “We have to raise prices to keep up with inflation,” but no, that’s literally just contributing to artificial inflation, which is apparent when you look at their profit margins and how they’ve increased since 2020 when everyone started freaking out about inflation…
Adam Smith was actually far more progressive than the neoliberal/capitalist propaganda like to portray him as. They basically cherry-pick his work and present it out of context to support arguments that are actually contrary to many of the points he was making…
When I said “classical economic theory” I meant more like “conventional economic theory,” so encompassing the absurdities you mentioned here.
Like, they’ll say “Economies naturally cycle through periods of growth and degrowth” to justify periods of inflation, but then when those periods of inflation are artificially extended to further enrich the shareholders (and artificially inflated, even!), they’ll conveniently ignore the whole “periods of degrowth” side of the coin, and if anything even remotely has a chance of causing deflation, it’s denounced as an anathema because “it would cause a recession!”
Corporations benefit from economies that harm consumers. Corporations should never be given control over economic policies. However, neoliberal economic policies are basically designed to help the corporations while hurting consumers. And it’s all founded upon conventional economic theories.
That’s how you end up with a Federal Reserve that says things like “Unemployment is a good thing, because if everyone has too much money to spend on things, it could cause inflation,” yet never addresses the standard business practice of increasing prices while cutting costs all to make “number go up” so that the shareholder value increases each quarter and the C-suite can get bigger bonuses…
They say things like “We have to raise prices to keep up with inflation,” but no, that’s literally just contributing to artificial inflation, which is apparent when you look at their profit margins and how they’ve increased since 2020 when everyone started freaking out about inflation…