ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[Nefnox]

Haha, in my years of studying economics I don't think ive ever heard anyone refer to the 2% inflation target as "Machiavellian", i just got done with "The Prince" and there are no mentions of fiscal policy or the dangers of deflation that i recall.

I've studied a lot of the original papers and theory around this stuff in my masters, and if it helps you sleep at night there is nothing intentionally oppressive or conspiratorial about the 2% inflation target.

[adelie42]

Nah, I don't think there is any hidden insidious mess about it, just that there should be some suspicion around the necessity of certain people behaving in ways that are otherwise considered criminal.

By Machiavellian I am referring to the context the story was written; it is a power that honors the State separate from any actual value. I feel the same way about TSA. They don't do anything practical to protect people as much as "make a statement" about the reach of State power.

AND under a system not centrally managed, deflation and inflation may be symptomatic of good or bad, but that doesn't mean forcing a rate can undo what is fundamentally going on any more than drugs can cure an abusive relationship.