This theory argues that high inflation causes firms to downsize products. Consumers are unlikely to notice subtle changes to packaging or product sizes. This strategy has the potential to drive customer complaints and lawsuits. The tactic is not new, but it grows in popularity during shortages and inflation. Let's look at some of its implications. How might it affect our economy? The answer may surprise you.

• Big Mac hit with a shrink ray?
• Same size, less product
• Gatorade is now 28 oz instead of 32oz! They put it in a taller bottle to trick everyone, though!

  

Big Mac hit with a shrink ray?

Demand-pull inflation

The Neo-Keynesian theory of economics distinguished between cost-push and demand-pull inflation. On the other hand, demand-pull inflation is caused by shifts in the aggregate supply curve. Cost-push inflation can be caused by external factors such as government policies but is generally not as severe as demand-pull inflation. However, some countries experience both types of inflation. Here is a discussion of both types of inflation and their respective effects on a country's economy.

  

Gatorade is now 28 oz instead of 32oz! They put it in a taller bottle to trick everyone, though!

During the "late capitalism" period, the US middle class had begun to reshape itself. So, it had been when the American middle class was thriving, and Europe was healing from its long-term economic decline. Richard Yeselson, a contributor to Dissent, has studied the labor movement and its effects. He believes that late capitalism will continue to impact the world's economic and social conditions profoundly.

  

Same size, less product

The Vietnam-era boom in employment brought an increased wage gap between workers and capital. This wage gap increased as wages in one sector of society soared, resulting in an upward spiral in wages. As a result, in the 1970s, the global economy suffered from stagflation, a condition of high inflation coupled with slow economic growth. This period has become known as "the era of stagflation" and will be remembered for its impact on the global economy.

After the collapse of the Communist regimes, the problem of inflation was brought into the open. After the collapse of the Communist bloc, post-Communist governments controlled the expansion of bank credit and the accumulation of foreign exchange through trade surpluses. The goal was to reduce wages by reducing productivity so that workers produced more than they could consume. As a result, after the collapse of the Soviet Union, the problem of inflation was addressed, and it became less prevalent.

Structured unemployment

Structured unemployment is a consequence of late-stage capitalism, where the labor market cannot supply enough jobs for everyone, and there is a mismatch between the skills of unemployed individuals and the available jobs. It is harder to eradicate than frictional unemployment, and no amount of demand-side stimulus will do so. This article will describe some of the critical features of structural unemployment and discuss how they can affect the economy and how to mitigate it.

High levels of unemployment can lead to civil unrest, revolution, and totalitarianism. In Germany, it led to the fall of the Weimar Republic, which ushered Adolf Hitler to power. In addition, the country's poor economic condition contributed to the outbreak of World War II, which ultimately led to the destruction of much of Europe's physical capital and caused a high unemployment rate of over 20%.

In the United States, unemployment rates are measured by sample surveys of employed and unemployed workers. In many Western countries, such as Canada, Mexico, Australia, and Japan, unemployment is calculated using a census-like sample of people. However, this method is flawed because it fails to count the total number of employed and unemployed people in a society. Moreover, unlike census data, sample surveys cannot measure the total number of employed people in the economy.

In theory, the economy's potential output is limited by the amount of capital in circulation, but it is also subject to policy changes. For example, the government of a nation can alter NAIRU by implementing strict fiscal policies or by restricting the availability of money. This allows governments to make monetary policy decisions more flexible and encourage more investment and loans. It also avoids the inefficiencies of deflation.

The poor stay poor and the rich get richer?

 Read "Late Stage Capitalism" JTFMax