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Financial anxiety: The alarming side effect of inflation

bbc.com

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Re: Financial anxiety: The alarming side effect of inflation

#4

Post by michaelteter »

Financial anxiety: Media - the primary instigator

It's one thing to feel financially tight. It's another thing to have endless news articles and publications and posts warning of how bad the global economy is and how inflation is running out of control.

Not only does this constant negative message directly cause stress on the viewers, but it can cause fear in business which can lead to "precautionary" retractions... which can exacerbate the actual market problems.

Decision-makers in companies will make harsh short term decisions either to look responsible to shareholders or to cover their asses from upper management, and these decisions can have negative long term consequences to the company, employees (especially those laid off), and the market in general.

How often do we see news of mass layoffs, and a month or two later we see a big hiring round from the same companies? This is grossly inefficient for the companies, and it's obviously very harmful to those let go.

If the media didn't jump on every potential disaster with such fervor, we would all be better off. But promoting fear gets attention, and attention is potential revenue... or votes.

Re: Financial anxiety: The alarming side effect of inflation

#6

Post by gjsman-1000 »

michaelteter wrote: post #4

Financial anxiety: Media - the primary instigator It's one thing to feel financially tight. It's another thing to have endless news articles and publications and posts warning of how bad the global economy is and how inflation is running out of control. Not only does this constant negative message directly cause stress on the viewers, but it can cause fear in business which can lead to "precautionary" retractions...…

Don't shoot the messenger. If anything, inflation and shrinkflation's effects on the average American are, in my opinion, understated; and Thomas Jefferson (if you've ever read his comments about inflation) would've been calling for hangings.

Also, worth remembering, the median American income is $40,480 /yr., while median household is $74,580 /yr. Half of Americans make less than that per year. 20th percentile income, by median, says that 1/5th of American households make less than $28,000/yr (no law of averages with high earners skewing the result here). One glance at the housing market, or inflation, and I think they have every right to feel angry.

Edit: Or is it 80th percentile?

Re: Financial anxiety: The alarming side effect of inflation

#7

Post by loeg »

gjsman-1000 wrote: post #6
michaelteter wrote: post #4

Financial anxiety: Media - the primary instigator It's one thing to feel financially tight. It's another thing to have endless news articles and publications and posts warning of how bad the global economy is and how inflation is running out of control. Not only does this constant negative message directly cause stress on the viewers, but it can cause fear in business which can lead to "precautionary" retractions...…

Don't shoot the messenger. If anything, inflation and shrinkflation's effects on the average American are, in my opinion, understated; and Thomas Jefferson (if you've ever read his comments about inflation) would've been calling for hangings. Also, worth remembering, the median American income is $40,480 /yr., while median household is $74,580 /yr. Half of Americans make less than that per year. 20th percentile incom…

Your median figure for individual income includes children, part-time workers, and retirees.

Re: Financial anxiety: The alarming side effect of inflation

#8

Post by lesuorac »

gjsman-1000 wrote: post #6
michaelteter wrote: post #4

Financial anxiety: Media - the primary instigator It's one thing to feel financially tight. It's another thing to have endless news articles and publications and posts warning of how bad the global economy is and how inflation is running out of control. Not only does this constant negative message directly cause stress on the viewers, but it can cause fear in business which can lead to "precautionary" retractions...…

Don't shoot the messenger. If anything, inflation and shrinkflation's effects on the average American are, in my opinion, understated; and Thomas Jefferson (if you've ever read his comments about inflation) would've been calling for hangings. Also, worth remembering, the median American income is $40,480 /yr., while median household is $74,580 /yr. Half of Americans make less than that per year. 20th percentile incom…

Perhaps more importantly and that during inflation/shrinkflation the median income has _decreased_ so not only do you get less for your money you also have less money!

I will say though on inflation we should shoot the messenger. Inflation is a disease; it describes a symptom (increased prices). The word inflation does not describe at all why prices increased. Did oil get more expensive so the cost of revenue increased? Did a company realize they were charging below market rate? The news can be do a tiny bit of investigation before reporting on it for hours on end.

https://www.census.gov/library/publications/2023/demo/p60-27...

Re: Financial anxiety: The alarming side effect of inflation

#9

Post by coffeebeqn »

gjsman-1000 wrote: post #6
michaelteter wrote: post #4

Financial anxiety: Media - the primary instigator It's one thing to feel financially tight. It's another thing to have endless news articles and publications and posts warning of how bad the global economy is and how inflation is running out of control. Not only does this constant negative message directly cause stress on the viewers, but it can cause fear in business which can lead to "precautionary" retractions...…

Don't shoot the messenger. If anything, inflation and shrinkflation's effects on the average American are, in my opinion, understated; and Thomas Jefferson (if you've ever read his comments about inflation) would've been calling for hangings. Also, worth remembering, the median American income is $40,480 /yr., while median household is $74,580 /yr. Half of Americans make less than that per year. 20th percentile incom…

This is hardly just the news talking too much about the thing. Cumulative inflation over the last 4 years has been insane and most people haven’t gotten double digit raises (just to tread water in the best case). People feel the pinch because it’s an actual fact in their day to day life
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