11–20 of 88 posts
I mean it's not just prices. If my income and benefits had tracked with inflation and promotions I wouldn't mind. But I got promoted and lost 20% of my purchasing power in real terms.
That's the point though, the Fed main lever to lower inflation is causing pain in the market. When they say soft landing they really just mean they believe they can break things just enough to cool down the economy and get back to the magic number of 2-3% inflation.
That people do not understand very basic concepts is scary. > The root of what’s going on here can feel obvious: blame inflation, which picked up in mid-2021 and throughout 2022. But that isn’t really the issue anymore, at least not at the current rate, because inflation is coming down. The actual problem here is prices. Inflation going from 10% to 5% is "inflation is coming down" - but it means that prices are risin…
In a well functioning capitalist economy prices should constantly decrease. The workaround is to get so large, that only the government could possibly compete with you, then you control prices.
I mean it's not just prices. If my income and benefits had tracked with inflation and promotions I wouldn't mind. But I got promoted and lost 20% of my purchasing power in real terms.
That's the point though, the Fed main lever to lower inflation is causing pain in the market. When they say soft landing they really just mean they believe they can break things just enough to cool down the economy and get back to the magic number of 2-3% inflation.
That people do not understand very basic concepts is scary. > The root of what’s going on here can feel obvious: blame inflation, which picked up in mid-2021 and throughout 2022. But that isn’t really the issue anymore, at least not at the current rate, because inflation is coming down. The actual problem here is prices. Inflation going from 10% to 5% is "inflation is coming down" - but it means that prices are risin…
It’s really disheartening to see the percentage of people that don’t understand this (and feel perfectly comfortable having an argument about it). People posting comparisons of receipts from 8 years ago and saying that prices are “really still up 30%” and “they’re lying to us”.
I'm way more disheartened by people talking about inflation like it's the end all be all of prices. We know what price gouging looks like.
However price increases are inflation, and inflation in one area of the economy can occur simultaneously to deflation in another area. The net result will be the official inflation rate.
In the US, the Fed and the Treasury both do things that can impact inflation/deflation in broad AND targeted ways. However these policy instruments sometimes have effects that were not strictly intended, and sometimes non-policy-related economic factors create inflation/deflation.
That people do not understand very basic concepts is scary. > The root of what’s going on here can feel obvious: blame inflation, which picked up in mid-2021 and throughout 2022. But that isn’t really the issue anymore, at least not at the current rate, because inflation is coming down. The actual problem here is prices. Inflation going from 10% to 5% is "inflation is coming down" - but it means that prices are risin…
It’s really disheartening to see the percentage of people that don’t understand this (and feel perfectly comfortable having an argument about it). People posting comparisons of receipts from 8 years ago and saying that prices are “really still up 30%” and “they’re lying to us”.
Earlier quoted context omitted.
It’s really disheartening to see the percentage of people that don’t understand this (and feel perfectly comfortable having an argument about it). People posting comparisons of receipts from 8 years ago and saying that prices are “really still up 30%” and “they’re lying to us”.
They are lying to us though. Inflation is and was higher than what they're saying it is.
That people do not understand very basic concepts is scary. > The root of what’s going on here can feel obvious: blame inflation, which picked up in mid-2021 and throughout 2022. But that isn’t really the issue anymore, at least not at the current rate, because inflation is coming down. The actual problem here is prices. Inflation going from 10% to 5% is "inflation is coming down" - but it means that prices are risin…
It’s really disheartening to see the percentage of people that don’t understand this (and feel perfectly comfortable having an argument about it). People posting comparisons of receipts from 8 years ago and saying that prices are “really still up 30%” and “they’re lying to us”.
That people do not understand very basic concepts is scary. > The root of what’s going on here can feel obvious: blame inflation, which picked up in mid-2021 and throughout 2022. But that isn’t really the issue anymore, at least not at the current rate, because inflation is coming down. The actual problem here is prices. Inflation going from 10% to 5% is "inflation is coming down" - but it means that prices are risin…
Deflationary spirals are scary, at least for a debt and consumption driven economy like ours. In theory supply and demand should force prices back down over time, but ongoing consolidation/monopolies/backdoor price fixing (RealPage, Amazon Marketplace) kinda broke the efficient market stuff. Trust bust before the economy busts?
One way this could happen is if salaries increased to match the new prices over time. The issue is that we are not seeing that happening, prices are increasing much faster than salaries, while corporate profits break records.
The money is flowing upwards, at some point people will get very fed up with that...