The problem isn't water, it's drowning.
The problem isn't obesity, it's calories.
The problem isn't expenses, it's income.
Inflation is literally defined as prices rises in response to increase in currency....
The problem isn't inflation. It's prices. What goes up may not come down
21–30 of 88 posts
Re: The problem isn't inflation. It's prices. What goes up may not come down
#22In 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.
wait, so there's no profit in capitalism?
In a perfectly competitive market, yes, profits go to zero.
https://www.investopedia.com/ask/answers/031815/why-are-ther...
But there's no such thing as a perfectly competitive market.
Re: The problem isn't inflation. It's prices. What goes up may not come down
#23Earlier 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”.
I see lots of people saying something different, which is the current state of prices doesn't match the rate of inflation we had the past few years. 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.
We've had about 20% total inflation since 2021. In some sectors it is higher and some lower. Even Amazon's recent history of price gouging is only going to add up to peanuts on their yearly gross. I think it's more people just don't understand compounding rates and if you inject more dollars into the economy than there are goods and services, you'll have more dollars chasing those same goods and services.
Re: The problem isn't inflation. It's prices. What goes up may not come down
#24In 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.
> well functioning capitalist economy prices should constantly decrease
Most things an average American would buy in 1923 are cheaper now in real terms. We just have more categories of things we purchase.
Re: The problem isn't inflation. It's prices. What goes up may not come down
#25Earlier 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”.
Is this just young people? Those of us that lived through the 70s and 80s remember very well how this stuff worked.
Let me assure you that people not understanding extremely basic economics come from all walks of life.
In fact, I was just listening to a random, she must’ve been 60 year old woman and her mother in a waiting room rant about “how is prices going up with inflation going down”.
I’ve been working for 20 odd years now and still have coworkers who started the day I did rant “these fucking forced union wage increases! Don’t they know that I’ll hit a new tax bracket and then take home less money than before!”
These people are 40+ years old. They should know better.
Re: The problem isn't inflation. It's prices. What goes up may not come down
#26That 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…
There is a reason corporate price gouging takes place when you see inflation narrative in the media. This is the only opportunity where people accept an increase in prices that sticks around. You raise the prices of eggs on a normal day, people will stop buying your eggs. You raise the prices of eggs when everyone is talking about inflation, people will accept it and focus on everything else.
Completely disagree. Eggs are a largely demand inelastic good. Prices go up when supply goes down, that's it. Commodity markets are very competitive, but when prices increase most people just get angry and pay anyway, it has nothing to do with media narratives.
Re: The problem isn't inflation. It's prices. What goes up may not come down
#27That 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…
There is a reason corporate price gouging takes place when you see inflation narrative in the media. This is the only opportunity where people accept an increase in prices that sticks around. You raise the prices of eggs on a normal day, people will stop buying your eggs. You raise the prices of eggs when everyone is talking about inflation, people will accept it and focus on everything else.
Auto workers seem to have used the "narrative" to good effect.
Re: The problem isn't inflation. It's prices. What goes up may not come down
#28Basic macroeconomics:
Inflation decreases, retailers begin lower prices to increase sales. There's a delay between all of this. This process happens over 1-2 years, much slower than prices going up.
This does not happen in a market with monopolies however, which is why it is vital to lower the barrier of entry into markets (decreasing stupid regulations that get "exceptions" in the real world), or use FTC or other state agencies to break up suppliers.
Or event bet, reduce our tax code / and or change it so that vertical integration stops being a thing.
Oh, and it'd help if the federal reserve stopped wholesale printing worthless money to try to keep up with absolutely reckless spending by the federal government.
Re: The problem isn't inflation. It's prices. What goes up may not come down
#29Re: The problem isn't inflation. It's prices. What goes up may not come down
#30Earlier quoted context omitted.
There is a reason corporate price gouging takes place when you see inflation narrative in the media. This is the only opportunity where people accept an increase in prices that sticks around. You raise the prices of eggs on a normal day, people will stop buying your eggs. You raise the prices of eggs when everyone is talking about inflation, people will accept it and focus on everything else.
Completely disagree. Eggs are a largely demand inelastic good. Prices go up when supply goes down, that's it. Commodity markets are very competitive, but when prices increase most people just get angry and pay anyway, it has nothing to do with media narratives.
I don't think the GP comment meant eggs specifically. They just chose a random specific consumer good as an example.