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"Tax increase" called cost-push inflation

 According to the principle of GDP three-sided equivalence (production = expenditure = income), when the production (* value-added production) price rises, the income also increases.   The problem is that if the goods and services we spend are imported from abroad, the "domestic income" will not increase. In fact, imports are a deduction for GDP (Gross Domestic Product). Imports increase the income of foreign producers. This means that even if the domestic inflation rate rises due to the influence of import prices, the "income of domestic producers" will not be affected. Of course, in ordinary countries, the income of domestic producers is also rising, so there is no problem even if import prices rise a little.   On the other hand, in Japan, instead of increasing income, it is "decreasing", and cost-push inflation, in which only "income of foreign producers" rises, has begun. According to the principle of GDP three-sided equivalence (production =

What will cost-push inflation bring to Japan?

 Once again, the principle of GDP three-sided equivalence is "production = expenditure (demand) = income". No one can deny this principle. In other words, if the price goes up due to demand pull, the income will definitely go up. And deflation is a situation where aggregate demand is insufficient for supply capacity. If supply capacity> aggregate demand continues, prices will fall. Furthermore, the sales (production) quantity will decrease during the deflationary period. as a result, "Prices go down, but income goes down even more." As a result, real wages will fall. And, as the poverty of the people continued, cost-push inflation started due to the shortage of supply capacity of foreign goods and services and the war between Russia and Ukraine triggered by the corona disaster.   Unlike demand-pull inflation, cost-push inflation does not increase national income. Or on the contrary, reduce it. Income increase due to "increased payments" in cost-push inf