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83% of Americans Are Belt Tightening Due to Inflation Pressures

forbes.com

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Re: 83% of Americans Are Belt Tightening Due to Inflation Pressures

#21

Post by lumost »

blacksqr wrote: post #8
trey-jones wrote: post #2

Wow. Who could have foreseen this? I suppose that's different from "Who could have stopped this?" Our economic problems are not easy ones to solve, but when trillions of dollars of are created out of thin air and distributed to the populace, you had to know this was coming.

The article reports that 72% of respondents said their income has not increased. So whatever trillions of dollars were created don't seem to have made it to the populace. Either the respondents are not a representative sample of consumers, in which case the article's conclusions are of little value; or something other than increased consumer spending, like supply chain issues, is causing the inflation.

It's surprisingly plausible that wages would not rise and inflation would speed up.

This can occur because companies lay off employees due to rising costs and lack of demand (while raising their own prices) or because the money is going to some alternate consumption.

Food prices could increase today simply because one or more of the beneficiaries of those trillions of dollars has allocated it to land acquisition. Retiring of productive capacity for other "economic" purposes will increase inflation.

Re: 83% of Americans Are Belt Tightening Due to Inflation Pressures

#22

Post by giantg2 »

ping_pong wrote: post #12

Economists like Bernanke have talked about dropping money from helicopters in the sky, in order to prevent deflation. What the government has done in the last year with its $10+ trillion in stimulus, is the exact definition of dropping money from helicopters and yet no one is pointing this out. Which means we must have narrowly averted a truly horrific situation as a country. The fact that everyone keeps talking abou…

"The fact that everyone keeps talking about more stimulus means that the government knows more than we do"

Like what?

Re: 83% of Americans Are Belt Tightening Due to Inflation Pressures

#23

Post by abfan1127 »

blacksqr wrote: post #13
halsom wrote: post #7

Earlier quoted context omitted.

Most of those trillions were delivered to the ruling/corporate class who has used it to secure assets instead of create value. That is the source of this inflation. For example: https://www.msn.com/en-us/news/us/koch-e2-80-99s-foundation-...

If so, the solution to the problem presented in the article is simple: tax the rich.

tax the rich? by whom? the same people have gave the rich the money? a bit incestuous, no? This is my point. stop giving these people the power to take from one group and give to another. It only works out for those connected. And guess what? in the history of the world, the poor have never been connected. Lower taxes (lower spending) and the poor get to keep their money and do as they wish with it.

Re: 83% of Americans Are Belt Tightening Due to Inflation Pressures

#24

Post by purple_ferret »

trey-jones wrote: post #2

Wow. Who could have foreseen this? I suppose that's different from "Who could have stopped this?" Our economic problems are not easy ones to solve, but when trillions of dollars of are created out of thin air and distributed to the populace, you had to know this was coming.

The idea that more cash has driven up the price of basic goods this quickly is almost certainly frivolous. The pressure simply isn't there, especially with wages still so low.

That's not to say prices haven't been suppressed over the years in various ways that combat normal inflation (6oz denim Jeans that are now 10% Spandex I'm looking at you) and there's a ton of money in the system that have mostly went into assets.

Re: 83% of Americans Are Belt Tightening Due to Inflation Pressures

#25

Post by lainga »

halsom wrote: post #7
trey-jones wrote: post #2

Wow. Who could have foreseen this? I suppose that's different from "Who could have stopped this?" Our economic problems are not easy ones to solve, but when trillions of dollars of are created out of thin air and distributed to the populace, you had to know this was coming.

Most of those trillions were delivered to the ruling/corporate class who has used it to secure assets instead of create value. That is the source of this inflation. For example: https://www.msn.com/en-us/news/us/koch-e2-80-99s-foundation-...

How does buying up assets lead to price increases in "groceries (96%), gas (93%), dining out (57%), and clothing (42%)"? Are the Koch Brothers hitting up Costco every day?

Re: 83% of Americans Are Belt Tightening Due to Inflation Pressures

#26

Post by lumost »

ping_pong wrote: post #12

Economists like Bernanke have talked about dropping money from helicopters in the sky, in order to prevent deflation. What the government has done in the last year with its $10+ trillion in stimulus, is the exact definition of dropping money from helicopters and yet no one is pointing this out. Which means we must have narrowly averted a truly horrific situation as a country. The fact that everyone keeps talking abou…

As a thought experiment.

In an economy where money fell in bags from helicopters from the sky, wouldn't you expect net makers and street sweeping trucks to experience drastic growth?

Re: 83% of Americans Are Belt Tightening Due to Inflation Pressures

#27

Post by s3r3nity »

newaccount2021 wrote: post #3

Inflation is here, it will get worse, the Fed will surprise you by over-reacting with an unscheduled rate hike. For some weird reason, HN threads on this topic are immediately flooded by comments trying to debunk inflation...I suppose even HN isn't shill-proof.

I tend to agree, though I wonder how much of a "surprise" it is now, versus how much of the expectation has been (or currently being) baked in.

When you look at a number of interviews with bankers / investors and the like recently, the general message is "inflation is here, and the Fed will have to raise rates soon - it's not a question of 'if' anymore but 'when.' "

Re: 83% of Americans Are Belt Tightening Due to Inflation Pressures

#29

Post by swiley »

zardo wrote: post #11
newaccount2021 wrote: post #3

Inflation is here, it will get worse, the Fed will surprise you by over-reacting with an unscheduled rate hike. For some weird reason, HN threads on this topic are immediately flooded by comments trying to debunk inflation...I suppose even HN isn't shill-proof.

I don't think anyone is going to argue that "supply-chain issues" don't cause price inflation. If less stuff is available the price of stuff goes up.

Many of the "supply-chain issues" are really just labor shortages because wages haven't kept up with the recent inflation.

Re: 83% of Americans Are Belt Tightening Due to Inflation Pressures

#30

Post by anotherman554 »

"6% indicated they experience price increases on everyday goods and services. Notably, they pointed to on groceries (96%), gas (93%), dining out (57%), and clothing (42%)"

This is a poorly conducted survey if it's trying to show inflation is a problem. This response would be accurate even if inflation was just 2%. The concern isn't inflation but the amount of inflation.

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