I understand how inflation devalues savings. The video makes a larger claim that people are getting payed less for their labor. How does that happen?
🇯🇵How Japan Became the Poorest Country in The World 🇯🇵
In this video, nostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z and James Lavish help me understand why a country's debt burden can have devastating effects on people's lives and how #bitcoin fixes this.
Full Video Here: https://youtu.be/C_-to3VCh9c https://v.nostr.build/OvlY.mp4
Discussion
As the supply of currency inflates, without a matching wage increase the workers are making proportionally less. Cost of living going up and peoples slice of the pie is getting smaller
I don’t understand why nominal wage wouldn’t rise like everything else. Actually, I think I got it: Cantilian effect takes away purchasing power from most people by shifting it to those closest to the money printer.
À coût de centimes ça ne sait strictement à rien.. L'exemple de la France que la plupart des étrangers ne comprennent pas ces 10 dernieres avec les partenaires est plus criant
Then the malinvestments happen as companies try to meet the temporary fake demand increase. The economy gets a little tilted each time.
Most prices haven't really risen in Japan for a long time. Housing is cheap, food is cheap. So there isn't really any incentive for companies to increase salaries. That will change when inflation starts to pick up as people will be more inclined to find better paying jobs.
People work longer for less. In Japan there is a culture of sa-bisu zangyou. People especially in small business / "black" companies, subsidiaries of larger companies are put under pressure to reduce cost and meet aggressive deadlines which leads to a culture of people staying late in the office and not getting paid for it. Bonuses are promised but often not delivered and people are just expected to suck it up and take one for the team.
