This weekly roundup thread is intended for all culture war posts. 'Culture war' is vaguely defined, but it basically means controversial issues that fall along set tribal lines. Arguments over culture war issues generate a lot of heat and little light, and few deeply entrenched people ever change their minds. This thread is for voicing opinions and analyzing the state of the discussion while trying to optimize for light over heat.
Optimistically, we think that engaging with people you disagree with is worth your time, and so is being nice! Pessimistically, there are many dynamics that can lead discussions on Culture War topics to become unproductive. There's a human tendency to divide along tribal lines, praising your ingroup and vilifying your outgroup - and if you think you find it easy to criticize your ingroup, then it may be that your outgroup is not who you think it is. Extremists with opposing positions can feed off each other, highlighting each other's worst points to justify their own angry rhetoric, which becomes in turn a new example of bad behavior for the other side to highlight.
We would like to avoid these negative dynamics. Accordingly, we ask that you do not use this thread for waging the Culture War. Examples of waging the Culture War:
-
Shaming.
-
Attempting to 'build consensus' or enforce ideological conformity.
-
Making sweeping generalizations to vilify a group you dislike.
-
Recruiting for a cause.
-
Posting links that could be summarized as 'Boo outgroup!' Basically, if your content is 'Can you believe what Those People did this week?' then you should either refrain from posting, or do some very patient work to contextualize and/or steel-man the relevant viewpoint.
In general, you should argue to understand, not to win. This thread is not territory to be claimed by one group or another; indeed, the aim is to have many different viewpoints represented here. Thus, we also ask that you follow some guidelines:
-
Speak plainly. Avoid sarcasm and mockery. When disagreeing with someone, state your objections explicitly.
-
Be as precise and charitable as you can. Don't paraphrase unflatteringly.
-
Don't imply that someone said something they did not say, even if you think it follows from what they said.
-
Write like everyone is reading and you want them to be included in the discussion.
On an ad hoc basis, the mods will try to compile a list of the best posts/comments from the previous week, posted in Quality Contribution threads and archived at /r/TheThread. You may nominate a comment for this list by clicking on 'report' at the bottom of the post and typing 'Actually a quality contribution' as the report reason.
Jump in the discussion.
No email address required.
Notes -
I see this claim a lot, and it's based on a misunderstanding of what the Fed actually does. If the Fed tries to lower interest rates below the natural rate of interest and hold them there, we get inflation. Now, not after 14 years.
What the Fed actually does is help markets clear faster by targeting the natural rate of interest, i.e. the rate at which the amount of money people want to lend is equal to the amount other people want to borrow. This results in savings being efficiently channeled into investments. If the Fed sets rates too high, there are excess savings that don't get borrowed, causing a recession. If the Fed sets rates too low, it causes inflation.
The fact that inflation was unusually low in the 2010s tells us that the Fed was more or less correctly targeting the natural interest rate, or even a bit above it; the natural interest rate may have actually been negative in the early 2010s.
The huge spike in inflation in 2021 was not the chickens coming come to roost after 14 years of artificially low interest rates. It was the result of a sharp increase in the money supply that made the early rounds of QE look like anthills, combined with excessive stimulus, and pandemic savings burning holes in the pockets of middle-class consumers.
You say rates should be as low as possible without causing inflation. I say they should be as high as possible without causing unemployment. Who's right? The Fed has a lot of room to make decisions based on vibes, not just their dual mandate. Reminder me again why they lowered rates in 2019 into record low unemployment?
But yes, I was oversimplifying and lumping QE/QT in with interest rates.
As long as it is due to a high savings rate and not a low demand for capital, a low interest rate is good because it increases asset prices, making us richer, and makes more potential investments profitable, expanding the capital stock, which increases productivity and the demand for labour, raising incomes.
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link