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Financial anxiety: The alarming side effect of inflation

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Re: Financial anxiety: The alarming side effect of inflation

#11

Post by gjsman-1000 »

lesuorac wrote: post #8
gjsman-1000 wrote: post #6

Earlier quoted context omitted.

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 increas…

I also can't stand, when it comes to inflation, that the media talks about a low-inflation quarter as though it is "relief for consumers."

What about it is relieving? Prices haven't gone down, prices aren't going down, we're supposed to feel relieved that prices are still going up, just slower?

I honestly dare the bankers on the Federal Reserve, and frankly, all of Congress, to live on a 20th percentile income. They'd be all over inflation in seconds once reality set in.

Edit: I might mean 80th, I'm struggling to remember which end is lower (20th or 80th).

Re: Financial anxiety: The alarming side effect of inflation

#12

Post by datadrivenangel »

I visited Argentina earlier this year, and the psychological effects of years of inflation were very real. The exchange rate has gone from 5 pesos per USD, to 350 officially in the last 10 years. The unofficial rate is up to almost 900 pesos per USD. In March the unofficial rate was half of that, so the currency has lost 50% of its value in the last 6 months.

Everybody prefers to be paid in dollars, and if you're getting paid in cash, why pay taxes? I had an Argentinian tell me that I could pay ~25% of the list price if I paid in USD instead of credit card, because the unofficial exchange rate and not paying taxes on it would save that much. Money requires trust that you can exchange it for goods and services, which are provided by other members of society, so debasing the money supply like this is killing society in the lovely country of Argentina.

Re: Financial anxiety: The alarming side effect of inflation

#13

Post by 5350-uiop-1130 »

> "with uncertainty around the current economic climate, the widespread issue of financial anxiety isn't going away."

privatise profits and socialise losses.

the truth is that for anxiety to be relieved, we need higher wages, much more time off, good healthcare and less rising costs.

economic "uncertainty" and inflation are not natural disasters. they are the outcomes of rational and incentivised behaviour.

Re: Financial anxiety: The alarming side effect of inflation

#16

Post by wing-_-nuts »

I used to have a lot of financial anxiety when I was younger. These days I thought I was pretty well set but the increase in prices for everything has been kind of a wake up call, especially housing! Kind of shocking when SFH's in my southern suburb went from costing ~ 400k in 2017 to ~ 800k now. What blows me away is that it appears to have no bearing to what people can actually afford? I make multiples of the local median household income and even I'm starting to worry about affordability if I ever needed more space.

Re: Financial anxiety: The alarming side effect of inflation

#19

Post by hbossy »

datadrivenangel wrote: post #12

I visited Argentina earlier this year, and the psychological effects of years of inflation were very real. The exchange rate has gone from 5 pesos per USD, to 350 officially in the last 10 years. The unofficial rate is up to almost 900 pesos per USD. In March the unofficial rate was half of that, so the currency has lost 50% of its value in the last 6 months. Everybody prefers to be paid in dollars, and if you're get…

Is it harder to travel from abroad? I imagine that thousands of $1 bills might rise some eyebrows at customs.

Re: Financial anxiety: The alarming side effect of inflation

#20

Post by disgruntledphd2 »

gjsman-1000 wrote: post #11
lesuorac wrote: post #8

Earlier quoted context omitted.

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 increas…

I also can't stand, when it comes to inflation, that the media talks about a low-inflation quarter as though it is "relief for consumers." What about it is relieving? Prices haven't gone down, prices aren't going down, we're supposed to feel relieved that prices are still going up, just slower ? I honestly dare the bankers on the Federal Reserve, and frankly, all of Congress, to live on a 20th percentile income. They…

20th is lower than 80th. It goes from 0 (lowest) to 100 (highest).
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