Ch. 9

6.
The passage that I found most interesting was the one where nominal GDP rose 10 percent but the inflation also rose 10 percent. This happening would mean that we sold the same amount of things at a higher price. This will look nice on paper. Seeing that our GDP rose 10 percent. When you really look at it nothing beneficial came out of it. We made no progress. The example used with the bills provides a good concept of the idea. 10 $1 bills looks a lot better than 1 $10 bill, but they are exactly the same. If the minimum wage is to go up it will only look like the 10 $1 bills. It will be nothing special. It will only look a potentially feel good. The people will feel like they are richer because they have more money, but then the price of everything will go. This is because businesses won't be able to afford their employees so they jack up all their prices. Soon a latte will be $8. Nobody really wants that to happen. The real goal is to keep inflation down and have the GDP rise otherwise it will only look good from the outside. Then no progress will be made.