Derivatives always were measured over infinitely small intervals. Basic calculus. And inflation always was the derivative of prices.
Prices are prices. If you want to complain about prices, then complain about prices. But we all know we aren’t going to do anything about prices. Furthermore: falling prices are utterly terrible for economies, so no one wants to force deflation.
Inflation followed by disinflation (ie: holding prices steady after a runup) is our best chance of keeping the economy moving forward. Seriously. Literally no one is asking for lower prices. Its too dangerous.
As opposed to you? Who has come into the topic to talk about CPI and Inflation while proudly displaying ignorance to simple monetary matters?
If you want to talk about health, you bring in doctors or other health specialists. If you want to talk about the economy and how to best build a country and a system of money, you need to bring in bankers and economists.
If you don’t care about money, then leave the topic. Don’t shit on people while being ignorant, at least take a step forward and learn the basics.
Heard it right here folks. Don’t think, don’t observe, don’t comment. Have blind faith in the economists, economists who continue and consistently lie to us about the situation because their banker friends are paying them to do it.
Not a science with zero predictive power.
Now off you go, write some article about how awesome student loans are and how universal healthcare is a a bad idea. Fortune or the Economist both will publish it.
You sound like a COVID19 denialist. Except instead of denying basic health science, you’re denying basic economics. I’m not sure if you really want that look for yourself.
But yeah, who cares about Fauci or whatever health care specialists think. They’re all paid off by the liberals. No wait, I’m on a liberal forum now. I’m supposed to hate bankers and economists now and deny basic economics.
But in all cases, proudly displaying ignorance is the best move. Amirite?
Come up with better insults banker. I been called much by much better.
Except instead of denying basic health science, you’re denying basic economics. I’m not sure if you really want that look for yourself.
Except instead of denying basic health science, you’re denying basic RICH PERSON’S YATCHTS. I’m not sure if you really want that look for yourself.
Ftfy
But yeah, who cares about Fauci or whatever health care specialists think. They’re all paid off by the liberals. No wait, I’m on a liberal forum now. I’
Now now let’s not compared medicine to your playtime rules.
Supposed to hate bankers and economists now and deny basic economics.
Supposed to hate bankers and economists now and deny basic RICH PERSON’S YATCHTS.
God that works so well.
But in all cases, proudly displaying ignorance is the best move. Amirite?
Well it is certainly working for your boys CATO and Heritage.
Cry more to AOC, who was part of this inflation problem crying about jobs and holding back Powell from raising the FFR to combat inflation.
Oh right, you’re a dumbass who don’t realize you’re shitting on your own side right now. AOC cried about everyone’s jobsss and unemployment that’s completely fucking non-existent right now. We undershot the employment rate, its clear we had to go higher and steeper with these interest rate hikes.
And you’re here sitting like an idiot, unable to comprehend basic history, fucking up your side of the discussion.
But sure, pretend that I’m the one who is a problem despite taking my time to talk about what’s going on. You’re welcome by the way, now please, sit down and think about your discussion points and where the politics have been laid out over the past couple of years.
Powell here was right and honestly… Powell was on the side that protected jobs too much. We all had to go higher on the FFR and push % even higher given what we know about the situation today.
Which is interpreted to be ‘We must avoid deflation’ by the Fed. Because these two statements are one and the same.
Between the choice of widespread unemployment vs fixing inflation, the policymakers came up with the current strategy. Lower inflation (aka: first derivative of price chances), which should hold jobs steadier than other options.
The Fed has a very blunt instrument for economic policy. It’s either lose jobs but fix inflation (aka higher rates), or more jobs but inflation gets out of hand (aka lower rates).
That’s just how the world works. Those are the only two choices the Fed has.
There’s two directions. You can raise rates, or you can lower them. Raising rates causes job losses but culls back inflation. Lowering rates increases the number of jobs but causes inflation to go up.
Its a fucking number… Because its a number, there’s only two directions to go. Up or down. Or zero if you want to split into a 3rd option for some reason. But not much aside from “raise”, “hold” or “lower” rates.
Now comes the political debate. Should we have been raising rates last year? Or should we have been lowering rates last year? And survey says… Oh right, liberals were asking to lower rates (ie: making inflation worse). Ding ding ding!! It pays to be a dumbass, because its the only way you can keep your petty little brain straight, isn’t it? You don’t like facing reality of your side’s opinions, do you?
Its not just conservative dumbasses who are unable to foresee basic problems with their politics, but also far left liberals who demonstrate ignorance. Thank you for making an example of yourself.
I have a fuckton of Democrats and Liberals crying about the unemployment rate. Do you want me to start posting them or do you actually have a memory that lasts longer than 1 year?
Liberals are asking for all kinds of inflationary pressures. Student loan forgiveness, higher minimum wages, job protections. And most dramatically, AOC asking for lower rates when talking to Powell last year.
It’s actually rather difficult for me to think of a singular Democrat policy that’d have deflationary effects… Well… There’s always raising taxes which I’d strongly support. Especially right now when inflation is at the forefront of a lot of people’s minds. It’d cause a slowdown in spending and likely drop prices.
i’m sure some people deserve student loan forgiveness. but most people i know who got it didn’t. they were purposing not paying back their loan so they could spend money elsewhere on luxuries.
and interest rates shoudl stay high. lowering them again to 1% will further fuck the economy for the working class like it has been for the past 20+ years of low rates. poor people don’t borrow much money, rich people do. Hence why wall st is the one pushing super hard to lower rates again.
The prices of commodities fall all the time. What you’re saying about prices does hold true for eg durable goods, but food prices have always fluctuated up and down more than other goods. I’ll be perfectly fine with lower prices at the grocery
Your math is poor a.f. And your argumentation doesn’t hold. The inflation rate is the relative change over a defined time-period. It is not a derivate. And a 10% interest rate p.a. corresponds to a .026 % interest rate per day. But that is still not the derivate. If we look at hours we are at a rate of .00109 %. And that is still not a derivate.
So @originalucifer@moist.catsweat.com is absolutely right also for interest rates. If you look at arbitrarily small timeframes it will always become a very small number.
Time derivatives are a key concept in physics. For example, for a changing position x its time derivative dx/dt is its velocity, and its second derivative with respect to time, d2x/dt2 is its acceleration. Even higher derivatives are sometimes also used: the third derivative of position with respect to time is known as the jerk. See motion graphs and derivatives.
I know not everyone takes Calculus. But this is quite elementary if you’ve taken the subject. There should be no confusion here.
Inflation is the change of price over the change of time. Or alternatively, Inflation describes the first derivative of price. What people care about however is the overall price, which unfortunately policy-makers can’t really control that well. We only have controls over the change-of-prices (ie: the derivative), not the actual direct price controls.
The interest rate is commonly given p.a. so per year. So if you take a shorter time it becomes arbitrarily small. But to take acceleration as an example. If you have an acceleration of 1 m/s² it is a derivate. But if you take it as the acceleration over a year you get 31,536,000 m/year² which is also technically a derivate, but a completely nonsensical expression.
And that was the joke @originalucifer@moist.catsweat.com made. And you showed why mathematicians don’t like it if economists want to brag about their math knowledge. Because you think your basic calculus qualifies you to be overly pedantic without showing real understanding of the concepts behind it.
doesnt stop my can of sparkling water from doubling in price in the last few years just because you want to limit “inflation” changes to ‘12 months’
You’re going the wrong direction yo to his original words. I don’t even know what you’re complaining about anymore. The original poster was trying to stretch time out to multiple years. My joke was that shorter-time frames is what is more accurate because that’s what mathematics / calculus has traditionally done.
I’ve said my piece, and I stand by it. I’ll repeat it here.
Prices are prices. If you want to complain about prices, then complain about prices. But we all know we aren’t going to do anything about prices. Furthermore: falling prices are utterly terrible for economies, so no one wants to force deflation.
I’ve done many inflation topics over the last 5 years. I’m surprised at how utterly shit people around here on this topic are. I’d expected more of lemmy users to know the basics of this subject. But I do appreciate you trying to catch me on a technicality, however arbitrary it was… you’ve demonstrated that you’re at least at the Calculus level to me.
I’m talking about fucking Deflation. The gremlin that caused the Great Depression so no one wants to fuck with Deflation anymore.
The fuck are you in about randomly bringing up GDP when I’m talking about a completely different subject? Are you on some kind of derailment kick right now?
The stock market crash of 1929 where there was too much imaginary money floating around and it sudde ly vanished, combined with several years of freak weather(either too little or too much rain.)
Sure buddy. Its not like people had statistics in the 1929. Oh wait…
The deflationary period began in 1927. Long, long before Black Friday. Deflation then grew out-of-control over the next few years, leading to 30%+ unemployment numbers (because as we all know, deflation causes unemployment).
After the 1930s, this country pretty much swore off deflation ever again. We have done our best to avoid deflation, for good reasons as the graph above should make obvious.
Recipe For Economics: Strip out all the fun interesting parts of Astrology, add a suffocating amount of clueless bros, and dump a full bottle of “rationalizations for not caring about the consequences of our cruelty” on top.
Oh wow, I didn’t know that more efficient production methods were terrible for the economy. TIL.
Here’s an example. Lots of people say they would like to own a Battery Elective Vehicle (BEV). One of the most common reason not to is “the price is too high”. There is a segment of people that can afford the higher price but are waiting for prices to fall with the assumed more efficient production methods in place in the future. So these buyers are NOT spending yet. While that may be a good personal finance choice, that lack of spending is bad for the economy as there is less money for auto dealerships, auto transporters, factory workers, parts suppliers, raw materials producers.
If there was no assumption of future falling prices (deflation) those buyers would have already bought a BEV (as they were during the pandemic when prices weren’t likely to fall).
US government vets said to be ready to assist with culls, or ‘depopulation’ of pigs, chickens and cattle because of coronavirus meat plant closures
You’re a dumbass. Americans stopped eating on a mass-scale due to COVID19, leading to a historical culling of pigs and cows, leading to a boom/bust of our food supply culminating in today’s inflation.
I support the politicians (and yes, bankers) who did hard work to counteract this problem (especially as they acted swiftly, and across party lines). And I shit on people like you who wish to just shit on the hard work of our leaders on this subject. Especially because you’re clearly too stupid to figure out basic history on this subject.
What we did years ago is something to be proud of. But it has a cost, the calculations weren’t perfect and we’re dealing with more inflation than expected in the year 2022. And as the graph at the beginning of the topic points out, the inflation was almost entirely during 2022, and has been hampered by now.
We still need to get used to these newer, higher, prices. But its better than the alternative (Without decisive action back then, we’d have even even larger-scale closures of food supply across the country. Which would have led to an even worse bust-boom bullwhip effect in our country)
People say I’m going to fire all of these meatpackers because COVID-19 closed down the Hotel all this meat is going to and bam, -30% + deflation starts to kick in and our politicians start to panick, because those politicians are smarter than you and know where that was going.
Politicians overcorrected and caused inflation from overaddressing our COVID-19 issue. But I’d rather live with inflation than the massive job loss numbers that was facing us in 2020.
Now today, we have a bunch of dumbasses who can’t even remember the economic calamity we avoided just 4 years ago complaining about inflation that happened fucking years ago.
This shit just happened and people are like “Why the fuck did meat prices go up?”. How short-term are yall’s memory? And then we used economics to print a fuck-ton more money to encourage more people to eat meat (to minimize the boom/bust… borrowing from the future so that we’d eat more meat during the COVID19 era), and people wonder where the hell all this inflation came from.
No one says “I’m gonna fast this week cuz I think groceries will be cheaper next week”
They’d say instead “I’ll buy the cheap coffee instead of the good stuff and get the store brand blend of olive oil instead of the EVOO I usually like instead to hold me over until the prices fall next week. I’ll also hold off on getting steaks this week and instead get some cheap chicken thighs”.
The US policy is biased towards saving jobs, not really towards being the cheapest stuff. And IMO, I agree with this. In many senses, job preservation is far more important.
Dude, COVID19 dropped prices across the board. How cheap were Hotels? Meat? Do you remember the $2 gas prices?
That grey line? That was deflation happening for one month and then every politician in the country stepping on the “inflation button” at the same time. It didn’t matter if you were Republican or Democrat, literally everyone got together in a couple of days and said “Yeah, lets print $1.5 Trillion bucks”.
THIS is what caused the inflation. M2 (aka: the amount of money in the USA).
And every politician hit the “Make more M2 / Make more money button” because holy shit COVID19 is fucking our economy, we’re about to fall into deflationary spiral somebody please save us mode.
Job losses caused inflation, because politicians got together and did something about it. And they did it so quickly that most people seem to have forgotten it despite it only being 4 years ago and you’re fucking up the order of history. COVID19 shut things down, and then came the inflationary stimulus / law changes
The food industry ran into supply chain constraints that legitimately increased prices at a rate higher than inflation. Greed set in and they turned those high prices into margin once they stabilized the supply chains.
But isn’t that just explaining the reason behind the inflation? Prices went up, at that time merely called a “spike”, due to supply chain constraints. Followed by not merely statically keeping those prices but increasing them further still, aka greedflation. But together they fulfill the standard definition:
In economics, inflation is a general increase in the prices of goods and services in an economy.
So I would not agree with the word “never”, and therefore am not sure what you are trying to say.
That’s true. It’s still inflation by definition. Typically when people refer to economic inflation, it’s the expected increase in the cost of goods and services year over year. The standard inflation rate in the US is typically between two and three percent. Referring to this as inflation can imply to some that it’s tied to the standard increase. I’ll edit to include the word standard for clarity.
“if you measure in a temporally small enough frame, inflation doesnt exist!”
doesnt stop my can of sparkling water from doubling in price in the last few years just because you want to limit “inflation” changes to ‘12 months’
Derivatives always were measured over infinitely small intervals. Basic calculus. And inflation always was the derivative of prices.
Prices are prices. If you want to complain about prices, then complain about prices. But we all know we aren’t going to do anything about prices. Furthermore: falling prices are utterly terrible for economies, so no one wants to force deflation.
Inflation followed by disinflation (ie: holding prices steady after a runup) is our best chance of keeping the economy moving forward. Seriously. Literally no one is asking for lower prices. Its too dangerous.
You sound like an economist
As opposed to you? Who has come into the topic to talk about CPI and Inflation while proudly displaying ignorance to simple monetary matters?
If you want to talk about health, you bring in doctors or other health specialists. If you want to talk about the economy and how to best build a country and a system of money, you need to bring in bankers and economists.
If you don’t care about money, then leave the topic. Don’t shit on people while being ignorant, at least take a step forward and learn the basics.
Heard it right here folks. Don’t think, don’t observe, don’t comment. Have blind faith in the economists, economists who continue and consistently lie to us about the situation because their banker friends are paying them to do it.
Not a science with zero predictive power.
Now off you go, write some article about how awesome student loans are and how universal healthcare is a a bad idea. Fortune or the Economist both will publish it.
You sound like a COVID19 denialist. Except instead of denying basic health science, you’re denying basic economics. I’m not sure if you really want that look for yourself.
But yeah, who cares about Fauci or whatever health care specialists think. They’re all paid off by the liberals. No wait, I’m on a liberal forum now. I’m supposed to hate bankers and economists now and deny basic economics.
But in all cases, proudly displaying ignorance is the best move. Amirite?
Come up with better insults banker. I been called much by much better.
Except instead of denying basic health science, you’re denying basic RICH PERSON’S YATCHTS. I’m not sure if you really want that look for yourself.
Ftfy
Now now let’s not compared medicine to your playtime rules.
Supposed to hate bankers and economists now and deny basic RICH PERSON’S YATCHTS.
God that works so well.
Well it is certainly working for your boys CATO and Heritage.
https://www.youtube.com/watch?v=RcFGzz839ZU
Cry more to AOC, who was part of this inflation problem crying about jobs and holding back Powell from raising the FFR to combat inflation.
Oh right, you’re a dumbass who don’t realize you’re shitting on your own side right now. AOC cried about everyone’s jobsss and unemployment that’s completely fucking non-existent right now. We undershot the employment rate, its clear we had to go higher and steeper with these interest rate hikes.
And you’re here sitting like an idiot, unable to comprehend basic history, fucking up your side of the discussion.
But sure, pretend that I’m the one who is a problem despite taking my time to talk about what’s going on. You’re welcome by the way, now please, sit down and think about your discussion points and where the politics have been laid out over the past couple of years.
Powell here was right and honestly… Powell was on the side that protected jobs too much. We all had to go higher on the FFR and push % even higher given what we know about the situation today.
i know, right! thats exactly what all the single moms in the poor neighborhood around the corner were sayin
Soccer moms say ‘I want to keep my job’.
Which is interpreted to be ‘We must avoid deflation’ by the Fed. Because these two statements are one and the same.
Between the choice of widespread unemployment vs fixing inflation, the policymakers came up with the current strategy. Lower inflation (aka: first derivative of price chances), which should hold jobs steadier than other options.
The Fed has a very blunt instrument for economic policy. It’s either lose jobs but fix inflation (aka higher rates), or more jobs but inflation gets out of hand (aka lower rates).
That’s just how the world works. Those are the only two choices the Fed has.
The only 2 options hahaha. Kk.
Do you not know how the Federal Funds Rate works?
I do
https://youtu.be/wz-PtEJEaqY?si=pK60f5dXtzyf-Ik4
Lovely.
There’s two directions. You can raise rates, or you can lower them. Raising rates causes job losses but culls back inflation. Lowering rates increases the number of jobs but causes inflation to go up.
Its a fucking number… Because its a number, there’s only two directions to go. Up or down. Or zero if you want to split into a 3rd option for some reason. But not much aside from “raise”, “hold” or “lower” rates.
Now comes the political debate. Should we have been raising rates last year? Or should we have been lowering rates last year? And survey says… Oh right, liberals were asking to lower rates (ie: making inflation worse). Ding ding ding!! It pays to be a dumbass, because its the only way you can keep your petty little brain straight, isn’t it? You don’t like facing reality of your side’s opinions, do you?
Its not just conservative dumbasses who are unable to foresee basic problems with their politics, but also far left liberals who demonstrate ignorance. Thank you for making an example of yourself.
Are you kidding?
Replace each instance of the word “economy” with “rich people’s yachts” and this comment makes a LOT more sense.
I have a fuckton of Democrats and Liberals crying about the unemployment rate. Do you want me to start posting them or do you actually have a memory that lasts longer than 1 year?
(fast comment male voice) This proceeding comment was paid message brought to you by Goldman Sachs.
(Women’s voice read slowly) Goldman Sachs, because fuck Detroit and fuck your pension.
We’re all asking for lower prices fuckstick
Liberals are asking for all kinds of inflationary pressures. Student loan forgiveness, higher minimum wages, job protections. And most dramatically, AOC asking for lower rates when talking to Powell last year.
It’s actually rather difficult for me to think of a singular Democrat policy that’d have deflationary effects… Well… There’s always raising taxes which I’d strongly support. Especially right now when inflation is at the forefront of a lot of people’s minds. It’d cause a slowdown in spending and likely drop prices.
pretty much.
i’m sure some people deserve student loan forgiveness. but most people i know who got it didn’t. they were purposing not paying back their loan so they could spend money elsewhere on luxuries.
and interest rates shoudl stay high. lowering them again to 1% will further fuck the economy for the working class like it has been for the past 20+ years of low rates. poor people don’t borrow much money, rich people do. Hence why wall st is the one pushing super hard to lower rates again.
The prices of commodities fall all the time. What you’re saying about prices does hold true for eg durable goods, but food prices have always fluctuated up and down more than other goods. I’ll be perfectly fine with lower prices at the grocery
Your math is poor a.f. And your argumentation doesn’t hold. The inflation rate is the relative change over a defined time-period. It is not a derivate. And a 10% interest rate p.a. corresponds to a .026 % interest rate per day. But that is still not the derivate. If we look at hours we are at a rate of .00109 %. And that is still not a derivate.
So @originalucifer@moist.catsweat.com is absolutely right also for interest rates. If you look at arbitrarily small timeframes it will always become a very small number.
Have you taken Calculus? This is one of the most basic of Calculus subjects. https://en.wikipedia.org/wiki/Time_derivative
I know not everyone takes Calculus. But this is quite elementary if you’ve taken the subject. There should be no confusion here.
Inflation is the change of price over the change of time. Or alternatively, Inflation describes the first derivative of price. What people care about however is the overall price, which unfortunately policy-makers can’t really control that well. We only have controls over the change-of-prices (ie: the derivative), not the actual direct price controls.
EDIT: My note about “infinitely small intervals” is the basic limit definition of the Derivative. https://tutorial.math.lamar.edu/classes/calci/defnofderivative.aspx
The interest rate is commonly given p.a. so per year. So if you take a shorter time it becomes arbitrarily small. But to take acceleration as an example. If you have an acceleration of 1 m/s² it is a derivate. But if you take it as the acceleration over a year you get 31,536,000 m/year² which is also technically a derivate, but a completely nonsensical expression.
And that was the joke @originalucifer@moist.catsweat.com made. And you showed why mathematicians don’t like it if economists want to brag about their math knowledge. Because you think your basic calculus qualifies you to be overly pedantic without showing real understanding of the concepts behind it.
You’re going the wrong direction yo to his original words. I don’t even know what you’re complaining about anymore. The original poster was trying to stretch time out to multiple years. My joke was that shorter-time frames is what is more accurate because that’s what mathematics / calculus has traditionally done.
I’ve said my piece, and I stand by it. I’ll repeat it here.
I’ve done many inflation topics over the last 5 years. I’m surprised at how utterly shit people around here on this topic are. I’d expected more of lemmy users to know the basics of this subject. But I do appreciate you trying to catch me on a technicality, however arbitrary it was… you’ve demonstrated that you’re at least at the Calculus level to me.
Oh wow, I didn’t know that more efficient production methods were terrible for the economy. TIL.
They need to add that prices falling is terrible for how we measure economic success
I’m not talking about GDP.
I’m talking about fucking Deflation. The gremlin that caused the Great Depression so no one wants to fuck with Deflation anymore.
The fuck are you in about randomly bringing up GDP when I’m talking about a completely different subject? Are you on some kind of derailment kick right now?
Deflation didnt cause the great depression.
The stock market crash of 1929 where there was too much imaginary money floating around and it sudde ly vanished, combined with several years of freak weather(either too little or too much rain.)
https://www.bls.gov/opub/mlr/2014/article/one-hundred-years-of-price-change-the-consumer-price-index-and-the-american-inflation-experience.htm
Sure buddy. Its not like people had statistics in the 1929. Oh wait…
The deflationary period began in 1927. Long, long before Black Friday. Deflation then grew out-of-control over the next few years, leading to 30%+ unemployment numbers (because as we all know, deflation causes unemployment).
After the 1930s, this country pretty much swore off deflation ever again. We have done our best to avoid deflation, for good reasons as the graph above should make obvious.
Recipe For Economics: Strip out all the fun interesting parts of Astrology, add a suffocating amount of clueless bros, and dump a full bottle of “rationalizations for not caring about the consequences of our cruelty” on top.
Here’s an example. Lots of people say they would like to own a Battery Elective Vehicle (BEV). One of the most common reason not to is “the price is too high”. There is a segment of people that can afford the higher price but are waiting for prices to fall with the assumed more efficient production methods in place in the future. So these buyers are NOT spending yet. While that may be a good personal finance choice, that lack of spending is bad for the economy as there is less money for auto dealerships, auto transporters, factory workers, parts suppliers, raw materials producers.
If there was no assumption of future falling prices (deflation) those buyers would have already bought a BEV (as they were during the pandemic when prices weren’t likely to fall).
And here I am buying food every week like a fool. I should just not eat until the prices go down.
https://www.theguardian.com/environment/2020/apr/29/millions-of-farm-animals-culled-as-us-food-supply-chain-chokes-up-coronavirus
You’re a dumbass. Americans stopped eating on a mass-scale due to COVID19, leading to a historical culling of pigs and cows, leading to a boom/bust of our food supply culminating in today’s inflation.
I support the politicians (and yes, bankers) who did hard work to counteract this problem (especially as they acted swiftly, and across party lines). And I shit on people like you who wish to just shit on the hard work of our leaders on this subject. Especially because you’re clearly too stupid to figure out basic history on this subject.
What we did years ago is something to be proud of. But it has a cost, the calculations weren’t perfect and we’re dealing with more inflation than expected in the year 2022. And as the graph at the beginning of the topic points out, the inflation was almost entirely during 2022, and has been hampered by now.
We still need to get used to these newer, higher, prices. But its better than the alternative (Without decisive action back then, we’d have even even larger-scale closures of food supply across the country. Which would have led to an even worse bust-boom bullwhip effect in our country)
Yeah, but we’re talking about groceries. No one says “I’m gonna fast this week cuz I think groceries will be cheaper next week”
No.
People say I’m going to fire all of these meatpackers because COVID-19 closed down the Hotel all this meat is going to and bam, -30% + deflation starts to kick in and our politicians start to panick, because those politicians are smarter than you and know where that was going.
Politicians overcorrected and caused inflation from overaddressing our COVID-19 issue. But I’d rather live with inflation than the massive job loss numbers that was facing us in 2020.
Now today, we have a bunch of dumbasses who can’t even remember the economic calamity we avoided just 4 years ago complaining about inflation that happened fucking years ago.
https://www.vox.com/2020/5/4/21243636/meat-packing-plant-supply-chain-animals-killed
https://www.theguardian.com/environment/2020/may/19/millions-of-us-farm-animals-to-be-culled-by-suffocation-drowning-and-shooting-coronavirus
This shit just happened and people are like “Why the fuck did meat prices go up?”. How short-term are yall’s memory? And then we used economics to print a fuck-ton more money to encourage more people to eat meat (to minimize the boom/bust… borrowing from the future so that we’d eat more meat during the COVID19 era), and people wonder where the hell all this inflation came from.
Its pretty fucking straightforward yo.
They’d say instead “I’ll buy the cheap coffee instead of the good stuff and get the store brand blend of olive oil instead of the EVOO I usually like instead to hold me over until the prices fall next week. I’ll also hold off on getting steaks this week and instead get some cheap chicken thighs”.
Deflation always leads to job loss.
The US policy is biased towards saving jobs, not really towards being the cheapest stuff. And IMO, I agree with this. In many senses, job preservation is far more important.
https://www.bls.gov/charts/employment-situation/civilian-labor-force-participation-rate.htm
Inflation leads to it as well. Almost as if A doesn’t lead to B.
Dude, COVID19 dropped prices across the board. How cheap were Hotels? Meat? Do you remember the $2 gas prices?
That grey line? That was deflation happening for one month and then every politician in the country stepping on the “inflation button” at the same time. It didn’t matter if you were Republican or Democrat, literally everyone got together in a couple of days and said “Yeah, lets print $1.5 Trillion bucks”.
THIS is what caused the inflation. M2 (aka: the amount of money in the USA).
And every politician hit the “Make more M2 / Make more money button” because holy shit COVID19 is fucking our economy, we’re about to fall into deflationary spiral somebody please save us mode.
Job losses caused inflation, because politicians got together and did something about it. And they did it so quickly that most people seem to have forgotten it despite it only being 4 years ago and you’re fucking up the order of history. COVID19 shut things down, and then came the inflationary stimulus / law changes
Those poor rich people’s yachts
You know damn well that its the Liberals crying about jobs that prevented us from raising rates and better addressing inflation.
If you are a human it’s called rich lizzard yacht money, to the lizzzard people it’s called economics.
@Punnyname got it right, just say “rich people’s yachts” whenever you see the word “economy” and everything you read makes sense.
I very much like how you phrased this.:-)
The problem is that it was never inflation.
The food industry ran into supply chain constraints that legitimately increased prices at a rate higher than inflation. Greed set in and they turned those high prices into margin once they stabilized the supply chains.
But isn’t that just explaining the reason behind the inflation? Prices went up, at that time merely called a “spike”, due to supply chain constraints. Followed by not merely statically keeping those prices but increasing them further still, aka greedflation. But together they fulfill the standard definition:
So I would not agree with the word “never”, and therefore am not sure what you are trying to say.
That’s true. It’s still inflation by definition. Typically when people refer to economic inflation, it’s the expected increase in the cost of goods and services year over year. The standard inflation rate in the US is typically between two and three percent. Referring to this as inflation can imply to some that it’s tied to the standard increase. I’ll edit to include the word standard for clarity.
That is the most accurate and succinct explanation I think I’ve seen anyone offer.
so stop buying it.