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Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

theguardian.com

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Re: Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

#11

Post by finexplained »

Grakel wrote: post #7
gruez wrote: post #4

Earlier quoted context omitted.

>Anyone who didn't get a 20% raise this year lost money. but inflation (as measured by CPI) isn't anywhere close to 20%?

20% of dollars in circulation were printed in 2020 and the inflation is filtering down. Also inflation statistics are intentionally blurred. Look at housing prices or other individual metrics.

Inflation isn't directly (that is one-to-one) tied to the amount of money printed. That's a simplistic view of a complicated phenomena. What matters is demand aggregated among many individuals. You can print any sum of money and if the person you give it to decides not to spend it, it doesn't affect demand and thus doesn't cause inflation. Meanwhile you can stop printing money, and if demand increases inflation can still occur.

Re: Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

#12

Post by Grakel »

finexplained wrote: post #5
Grakel wrote: post #3

Anyone who didn't get a 20% raise this year lost money. As the fed pumped cash, the stock market gains kept the rich from feeling the inflation that is being handed to everybody else with a bow on it. For months everyone has naysayed the idea that money printing would have a negative effect, now just Google "inflation" news articles.

> Anyone who didn't get a 20% raise this year lost money Inflation numbers that just came out measure year-over-year inflation at 5.4%. And last July we had artificially depressed demand during the pandemic.

Inflation statistics are lies. Look at individual metrics in housing and food.

Re: Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

#13

Post by Retric »

hamburgerwah wrote: post #9
gruez wrote: post #4

Earlier quoted context omitted.

>Anyone who didn't get a 20% raise this year lost money. but inflation (as measured by CPI) isn't anywhere close to 20%?

Housing prices across the board have jumped 40% on average -- in the past year. In the insane prop 13 fueled market that is california bay area increases are closer to 65% in the past year.

No they haven’t.

“According to Zillow, the typical value of U.S. homes is $269,039 as of January 2021, a 9.1% increase from January 2020. Between 1999 and 2021, the median price has more than doubled from $111,000 to $269,039.”

Re: Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

#14

Post by Grakel »

anigbrowl wrote: post #8
gruez wrote: post #4

Earlier quoted context omitted.

>Anyone who didn't get a 20% raise this year lost money. but inflation (as measured by CPI) isn't anywhere close to 20%?

Who needs facts when they have feelings?

What I feel is prices on everything in every store and online going up, while packaging shrinks. Who's doing your shopping? There's a big difference between facts and government published statistics.

Re: Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

#16

Post by frankbreetz »

Grakel wrote: post #12
finexplained wrote: post #5

Earlier quoted context omitted.

> Anyone who didn't get a 20% raise this year lost money Inflation numbers that just came out measure year-over-year inflation at 5.4%. And last July we had artificially depressed demand during the pandemic.

Inflation statistics are lies. Look at individual metrics in housing and food.

Read: cherry pick whichever values are highest to keep the inflation narrative going.

Re: Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

#17

Post by Grakel »

Retric wrote: post #13
hamburgerwah wrote: post #9

Earlier quoted context omitted.

Housing prices across the board have jumped 40% on average -- in the past year. In the insane prop 13 fueled market that is california bay area increases are closer to 65% in the past year.

No they haven’t. “According to Zillow, the typical value of U.S. homes is $269,039 as of January 2021, a 9.1% increase from January 2020. Between 1999 and 2021, the median price has more than doubled from $111,000 to $269,039.”

What about only including data from places people want to live? You can buy a house in South Dakota for 25,000, but that not useful information when looking at national housing inflation.

Re: Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

#18

Post by NationalPark »

Grakel wrote: post #12
finexplained wrote: post #5

Earlier quoted context omitted.

> Anyone who didn't get a 20% raise this year lost money Inflation numbers that just came out measure year-over-year inflation at 5.4%. And last July we had artificially depressed demand during the pandemic.

Inflation statistics are lies. Look at individual metrics in housing and food.

All food CPI is up 2.1% this year, housing of course is much more but that's what the article is about so where's the lie?

Re: Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

#19

Post by Retric »

Grakel wrote: post #17
Retric wrote: post #13

Earlier quoted context omitted.

No they haven’t. “According to Zillow, the typical value of U.S. homes is $269,039 as of January 2021, a 9.1% increase from January 2020. Between 1999 and 2021, the median price has more than doubled from $111,000 to $269,039.”

What about only including data from places people want to live? You can buy a house in South Dakota for 25,000, but that not useful information when looking at national housing inflation.

Median cuts things in half, it’s effectively the middle of housing desirability. You might want to live in NYC or SF, but most of the US doesn’t.

Re: Nearly half of American workers don’t earn enough to afford a one-bedroom (cont)

#20

Post by mindslight »

Grakel wrote: post #3

Anyone who didn't get a 20% raise this year lost money. As the fed pumped cash, the stock market gains kept the rich from feeling the inflation that is being handed to everybody else with a bow on it. For months everyone has naysayed the idea that money printing would have a negative effect, now just Google "inflation" news articles.

The problem is that worries about inflation are only ever trotted out when relief for individuals is being considered. Money printing to juice the markets happens without concern or debate.

The bailout that caused all the current asset inflation happened reflexively after a single day drop in the stock market at the start of Covid. Executives had looted companies by loading them up with debt that relied on optimistic cashflow, gave themselves bonuses for that "optimization", and then got bailed out when the cashflow slowed. These companies should have been restructured in bankruptcy, with the executives going to jail for violation of fiduciary duty. Instead, they were rewarded.

The direct price inflation we're seeing lately is actually a good thing in that it will force the Fed to use the brakes. When they only give money to the financial industry, it takes a while for price inflation to occur. But by giving the new money directly to consumers instead, price inflation occurs much quicker and thus precludes asset inflation.

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