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Current Inflation Has Different Effects on Different Age Groups

macroaffairs.com

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Re: Current Inflation Has Different Effects on Different Age Groups

#21

Post by aphextron »

joefourier wrote: post #12
aphextron wrote: post #2

I feel like technology has led to such an efficient form of capitalism over the past 20 years, that there's no room left for any possibility of social mobility. It's this system where there is just enough room for you to live and get by, but never get ahead. Prices for everything are so efficiently optimized at this point that there is no more "wiggle room" for a working person to build wealth. The basic necessities…

Where do you live, and what on earth are you spending your money on? Housing may be absurdly costly in many cities but $5.5k a month after tax (assuming you're American) is enough to do much better than "barely ok" almost anywhere. Are you significantly in debt or living above your means?

>Where do you live, and what on earth are you spending your money on?

Bay area

~$5,000 net monthly

$2500 Rent/PGE

$1000 Car/Insurance/Gas/Parking/Phone/Internet

$500 Food/Clothing

$500 IRA

That leaves ~$500 monthly discretionary income, which I usually try to save as much as possible but inevitably gets eaten up by all the stupid little things in life that cost too much nowadays. I can't even imagine supporting a family on this income and it is far higher than most people will ever see.

Re: Current Inflation Has Different Effects on Different Age Groups

#22

Post by smallnamespace »

j-c-hewitt wrote: post #18

This is a great example of how you can make up anything by aggregating unrelated statistical measures and then mislead people with a new definition on top of another woozy commonly used definition.

We can certainly argue the technical merits of how they created their 'generation-weighted price index', but differential impacts of inflation seems plausible on the face of it.

If you are looking for work in a big city, and big city real estate prices are growing much faster than nationwide, that is a real effect.

Re: Current Inflation Has Different Effects on Different Age Groups

#23

Post by moorhosj »

mobilefriendly wrote: post #6
aphextron wrote: post #2

I feel like technology has led to such an efficient form of capitalism over the past 20 years, that there's no room left for any possibility of social mobility. It's this system where there is just enough room for you to live and get by, but never get ahead. Prices for everything are so efficiently optimized at this point that there is no more "wiggle room" for a working person to build wealth. The basic necessities…

High marginal income tax rates are designed to keep you from building wealth-- the capital-holding classes don't want the competition for assets.

Income tax rates are not the problem, stagnating wages are the problem.

Re: Current Inflation Has Different Effects on Different Age Groups

#24

Post by pkaye »

organsnyder wrote: post #11
pkaye wrote: post #8

Earlier quoted context omitted.

Not all prescriptions are for expensive medicines. I'd say many of them are generic drugs which cost pennies per day.

In many cases, drug companies come up with ways to keep prices high. For instance, asthma drugs are reconfigured with different delivery mechanisms that allow them to get new patents for what are essentially long-ago-discovered drugs. For instance, the CFC ban in 2008 caused generic albuterol to go off the market: https://www.scientificamerican.com/article/unlikely-victims-...

Other than the CFC ban, in most of those cases, the old medicine is still fine to use.

Re: Current Inflation Has Different Effects on Different Age Groups

#25

Post by jakelarkin »

drcode wrote: post #13
3pt14159 wrote: post #10

Earlier quoted context omitted.

Housing is largely a problem to do with interest rates and mortgages inflating the land. The actual construction materials themselves (at least here in Canada) aren't too bad. I keep wondering why someone doesn't kickstarter a town. It has all the right incentives. Make guidelines that enforce density in the core and do common sense things from day 1, like wire fibre to every domicile.

Don't forget about zoning issues hampering supply and the rising cost of construction labor.

construction labor is seemingly entering a vicious cycle where workers can't afford to live near where the most new homes are needed.

Re: Current Inflation Has Different Effects on Different Age Groups

#26

Post by pavel_lishin »

3pt14159 wrote: post #10
taurath wrote: post #3

I wonder how much higher it would be if medical costs were taken out. Housing is the biggest problem for my generation, but it gets almost no traction nor solution.

Housing is largely a problem to do with interest rates and mortgages inflating the land. The actual construction materials themselves (at least here in Canada) aren't too bad. I keep wondering why someone doesn't kickstarter a town. It has all the right incentives. Make guidelines that enforce density in the core and do common sense things from day 1, like wire fibre to every domicile.

Like Galt's Gulch?

Re: Current Inflation Has Different Effects on Different Age Groups

#27

Post by drunken-serval »

organsnyder wrote: post #11
pkaye wrote: post #8

Earlier quoted context omitted.

Not all prescriptions are for expensive medicines. I'd say many of them are generic drugs which cost pennies per day.

In many cases, drug companies come up with ways to keep prices high. For instance, asthma drugs are reconfigured with different delivery mechanisms that allow them to get new patents for what are essentially long-ago-discovered drugs. For instance, the CFC ban in 2008 caused generic albuterol to go off the market: https://www.scientificamerican.com/article/unlikely-victims-...

I can't use albuterol due to side-effects. The CFC ban caused the medication I used to disappear completely. The alternative is half as effective.

Re: Current Inflation Has Different Effects on Different Age Groups

#28

Post by IncRnd »

j-c-hewitt wrote: post #18

This is a great example of how you can make up anything by aggregating unrelated statistical measures and then mislead people with a new definition on top of another woozy commonly used definition.

It's also a great example of using statistics to create a conclusion that fits a narrative, based upon statistically insignificant behavior.

This article is entitled, "Over the Past 5 Years, Inflation for Millennials was 14% Higher than for Baby Boomers". Yet, we find out in the last paragraph, indeed in the final sentence, that there is virtually no difference between groups over a longer, more significant period of 18 years.

There are three kinds of lies: lies, damned lies, and statistics.

Re: Current Inflation Has Different Effects on Different Age Groups

#29

Post by WalterBright »

aphextron wrote: post #21
joefourier wrote: post #12

Earlier quoted context omitted.

Where do you live, and what on earth are you spending your money on? Housing may be absurdly costly in many cities but $5.5k a month after tax (assuming you're American) is enough to do much better than "barely ok" almost anywhere. Are you significantly in debt or living above your means?

>Where do you live, and what on earth are you spending your money on? Bay area ~$5,000 net monthly $2500 Rent/PGE $1000 Car/Insurance/Gas/Parking/Phone/Internet $500 Food/Clothing $500 IRA That leaves ~$500 monthly discretionary income, which I usually try to save as much as possible but inevitably gets eaten up by all the stupid little things in life that cost too much nowadays. I can't even imagine supporting a fam…

I don't think the bay area housing situation is at all representative of capitalism.

Re: Current Inflation Has Different Effects on Different Age Groups

#30

Post by aphextron »

mobilefriendly wrote: post #6
aphextron wrote: post #2

I feel like technology has led to such an efficient form of capitalism over the past 20 years, that there's no room left for any possibility of social mobility. It's this system where there is just enough room for you to live and get by, but never get ahead. Prices for everything are so efficiently optimized at this point that there is no more "wiggle room" for a working person to build wealth. The basic necessities…

High marginal income tax rates are designed to keep you from building wealth-- the capital-holding classes don't want the competition for assets.

>High marginal income tax rates are designed to keep you from building wealth-- the capital-holding classes don't want the competition for assets.

This was my first thought as well when looking at the new Republican tax brackets. They're throwing peanuts at the poor in the form of a minuscule tax break, while simultaneously cutting off their ability to ever actually build wealth by raising the middle rates.

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