Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

US Wholesale Inflation Rises by Most in 3 Years

bloomberg.com

Post reply on HN
Print view View original

181–190 of 412 posts

Re: US Wholesale Inflation Rises by Most in 3 Years

#181

Post by monkeyelite »

andsoitis wrote: post #16
mark_l_watson wrote: post #13

Over the years I have read a few articles or blogs that make the argument that if government inflation figures in the US were calculated as they do in Europe, then our reported US inflation figures would be much higher. Can anyone here verify this? Our main problems involve under the table unreported to the public military expenditures. If you look at a map of our military bases, we have many bordering China. I think…

> Over the years I have read a few articles or blogs that make the argument that if government inflation figures in the US were calculated as they do in Europe, then our reported US inflation figures would be much higher. Can anyone here verify this? Your question at the end suggests those blogs and articles didn’t include compelling evidence for the case they were making. If true, then it is worth reconsidering whet…

That’s because consumer inflation is subjective. You can choose which goods and data point represent personal experience.

As you well know the government uses “hedonic adjustment” which is when they say a car in 2025 is so much better that a car in 1980 that higher prices should be reduced to reflect that better good.

A different model is that you need A car to participate in society so even if it’s better we just raised to the cost to exist.

Re: US Wholesale Inflation Rises by Most in 3 Years

#182

Post by monkeyelite »

SV_BubbleTime wrote: post #159

I’m always shocked at how many economics experts there are on a tech forum!

This one isn’t surprising at all though. It’s a technical subject with everyday relevance and lots of material to learn about it.

Unless you’re implying special credentials should be required to comment.

Re: US Wholesale Inflation Rises by Most in 3 Years

#183

Post by mark_l_watson »

jack_h wrote: post #124
mark_l_watson wrote: post #47

Earlier quoted context omitted.

Good point. How do you gather information? I split my time about half each reading US news and news from other countries. There are a few people I find believable like Dr. Jeffrey Sachs and retired congressman Ron Paul (these two guys are quite different politically) and I will listen to each of them once or twice a month, just to occasionally get non-mainstream news viewpoints.

If you're truly curious I would say the best way to start is to get a basic understanding of economics and how our current system actually operates. It's also important to look up the data as it actually exists rather than consuming conclusions from commentators without investigating further. For instance your initial post seems to imply that we aren't balancing our defense vs social spending and are spending way too…

Just my opinion (but I did work in the defense industry from 1974 to 1998), but I just don’t believe the published ~ 800 billion defense spending numbers. A few presidents ago, the chairman of the joint chiefs publicly said that 7 trillion in military spending is unaccounted for.

Also, I admit to getting much of my information from professor Dr. Jeffrey Sachs, an economist.

I took an online economics class from Wharton business school, specifically on the economics of globalization. Fascinating stuff.

Anecdotal, but as a hobby for the last 20 years, I enjoy comparing the coverage of major news and economics stories in USA vs. other countries.

Re: US Wholesale Inflation Rises by Most in 3 Years

#184

Post by abtinf »

infecto wrote: post #150
vancroft wrote: post #134

Earlier quoted context omitted.

Al Jazeera reports around 750 US military bases, across the world but concentrated in Europe, Japan and South Korea, and the Middle East. Not quite bordering China. https://www.aljazeera.com/news/2021/9/10/infographic-us-mili...

This is not wrong but the term base is click baity but probably an accepted definition from the pentagon. It’s include all facilities no matter or large or small and even those that are part of another base but not on the main campus. It’s almost like a count of buildings.

I haven’t checked, but I would guess this number even includes things like NSA outposts (since NSA is part of DoD) and embassies (which are protected by Marines).

Re: US Wholesale Inflation Rises by Most in 3 Years

#185

Post by lukas099 »

abtinf wrote: post #129
mbfg wrote: post #106

Earlier quoted context omitted.

I believe less than a quarter of the defense budget is for salaries and compensations.

All spending everywhere is essentially “salaries and compensation”. It’s not like you get to the end of the supply chain and suddenly are paying God. Money always goes to people.

I don't agree. If I dig a hole in my yard and find a huge chunk of gold, when I sell it very little of what I charge will be for my labor.

Also, even if you're right, the "salaries and compensation" of anyone outside the U.S. are effectively NOT that, since the thing in question is whether defense spending is mostly a jobs program.

Re: US Wholesale Inflation Rises by Most in 3 Years

#186

Post by ffsm8 »

abtinf wrote: post #164
frankbreetz wrote: post #153

Earlier quoted context omitted.

Profit would fall into an entirely different category then "salaries and compensation"

Certainly. So would materials expenses and theft and insurance and so forth. But the confusion is that somehow, money not spent on “salaries and compensation” doesn’t go to people. All of it goes to people. Defense spending isn’t buying “defense”, it’s buying time and effort for people to focus on and produce defense related things. This is the root of the original post that defense spending is a jobs program.

> All of it goes to people

That's just straight up false.

It goes to legal entities, some of which are people.

Companies aren't people mate, and neither are investment funds.

The money might still be managed by people, but that cannot be called salary, even if you're stretching the definition.

Re: US Wholesale Inflation Rises by Most in 3 Years

#187

Post by lukas099 »

estearum wrote: post #166
abtinf wrote: post #129

Earlier quoted context omitted.

All spending everywhere is essentially “salaries and compensation”. It’s not like you get to the end of the supply chain and suddenly are paying God. Money always goes to people.

Well, really at rock bottom all payments go into land rent.

Sounds interesting but I'm having a hard time wrapping my mind around that. Would you care to elaborate?

Re: US Wholesale Inflation Rises by Most in 3 Years

#188

Post by 9rx »

mark_l_watson wrote: post #56
Thorrez wrote: post #44

Earlier quoted context omitted.

If the US dollar was being devalued faster than reported, and the Euro wasn't, wouldn't that be visible in the exchange rate?

I think Europe has worse financial problems than we do.

That might be an explanation for as to why the inflation figures are what they are, but the math described above wouldn't change. If one currency is quickly being devalued while another isn't, it is going to be obvious when you try to exchange those currencies.

Re: US Wholesale Inflation Rises by Most in 3 Years

#190

Post by whimsicalism »

mark_l_watson wrote: post #13

Over the years I have read a few articles or blogs that make the argument that if government inflation figures in the US were calculated as they do in Europe, then our reported US inflation figures would be much higher. Can anyone here verify this? Our main problems involve under the table unreported to the public military expenditures. If you look at a map of our military bases, we have many bordering China. I think…

Secret defense spending would not and should not impact inflation numbers except in so far as it impacts the already measured consumer basket, the US does not have 900 military bases near China, etc. etc.

Just not a very good comment in my view.

Post reply on HN