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Infrastructure is wealth.

It's indirect wealth - it doesn't live in warehouses, and people can't buy it directly.

But if breeds wealth in the same way that lack of infrastructure - including lack of banking infrastructure - destroys it.

If you're losing spending power, it doesn't matter if you're losing it to inflation or because items are piling up in the docks because no one can offer a credit line for it.

There's also the subtext that 'inflation' is often really just code for 'worker power.' But that's for another diary.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Oct 13th, 2008 at 05:42:45 AM EST
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... when there are members of the Federal Open Market Committee who talk about wages increasing at half the rate of productivity growth as an "inflationary threat" that may have to be tamped down with a rise in the cash rate ... while asset-price inflation is always for the best ... its clear that the obligation to pursue a full employment economy is primarily honored in the breach.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Mon Oct 13th, 2008 at 05:28:50 PM EST
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