Keynes Was Right – On One Thing At Least

A contention of JM Keynes was that people hate, really just hate, their wages to go down. This also being subject to the money illusion. It’s that we hate nominal wages, that amount of £s or $s that we get, going down. Doesn’t matter if the prices of everything else more than halve we’ll be mighty pissed off at still being better off if our own nominal wages halve. This is of course silly but it’s very human.…

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