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).
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”.
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)
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
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.
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.
Oh wow, I didn’t know that more efficient production methods were terrible for the economy. TIL.
@Punnyname got it right, just say “rich people’s yachts” whenever you see the word “economy” and everything you read makes sense.
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).
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”.
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)
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.
They need to add that prices falling is terrible for how we measure economic success
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.
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.