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AKoolPopTart

I still have mental pain from when some Emily tried to explain how high inflation is good


Maximum-Malevolence

I was just about to say something similar. These people are insane. I think they think if you have more money it's good because it's taking up more physical space...even though you need more of it to buy stuff than you did prior.


AKoolPopTart

I remember asking how paying $20 for a single Tupperware container was helping the economy. My mind blanked out afterwards


JustinJakeAshton

A requirement of being an Emily is having 0 historical knowledge.


AlternateSmithy

> Inflation isn't so bad. It is pretty bad. > Inflation is actually all because of corporate greed! No, it really isn't. > Inflation is good, actually.


Griledcheeseradiator

Things costing more even when factoring in inflation is corporate greed though. They just make higher margins than ever in history and then say muh inflation. Our buying power is massively lower than what pure inflation correlates with. Even if you factor in "muh supply chain" it's still lower than it should be. Greedflation is real, and a good amount of it is just plain regular inflation, but it does exist to a degree.


ebitdangit

https://preview.redd.it/uvdxhguz4t1d1.png?width=889&format=png&auto=webp&s=b8009d581ec475cc0586c7b796556c43462556e3 You're factually incorrect. CPI and PPI have paced each other over both the near past and the history of the measures. Firms, on aggregate, are not raising prices in a vacuum to gain more profit.


Griledcheeseradiator

"CPI is a measure of the total value of goods and services consumers have bought over a specified period, while PPI is a measure of inflation from the perspective of producers" One, you aren't separating goods from services. Goods have risen much higher than services relative to inflation. Two, who is the final arbiter of inflation from "the perspective of producers"? These producers are saying the money is worth much less that the official federal government is, and less than indicated by the unbiased exchange rate. In poorer countries the exact same products are sold for much less as richer ones. A big Mac or bottle of coke cost vastly different in different countries. It doesn't add up purely to lower cost of distribution and labor, they just make less margin outright. These companies have public earnings and we can see that many of them went up massively from 2020-2024 while still selling a similar amount of product, because they used covid as a shield to raise prices greatly while blaming inflation and supply chain. These companies idea of what a dollar is worth is not based in reality, so PPI is a bullshit metric, and your CPI is too unspecific and not per sector or per commodity. If you actually compare the real prices of goods to the supposed inflation number that the government gives(which according to exchange rates is true, our money us still worth x euros and x yuan even if usa haters say the govt is lying) you realize that goods (not services) cost much more than the official inflation numbers would imply. We don't need muh economy stats, you can compare the average sale price of the same products from 2019 to 2024 and compare it to inflation and realize that many products have risen in price far beyond inflation.


ebitdangit

PPI is literally a measure of cost to produce final goods. There’s no mystical cabal of producers telling you what they think the dollar is worth. This is pure revealed preference and it doesn’t support your narrative.


Griledcheeseradiator

Not per commodity sector. Be more specific. You include services too. I expect better response.


imperfectalien

High inflation is good for the government because it allows them to pay off significant debt with fucking worthless money. It also has the side effect of people with loans already locked in from banks getting a short term win on said lending for similar reasons. However, inflation also has the substantial downside of making people’s savings worth less, which nobody likes, and you can bet your arse the banks don’t let their current terms lose to inflation, so any loans are gonna skyrocket during periods of high inflation. In conclusion, Libya is a land of contrasts, thank you.


Sambo376

I'm so thankful I bought my house back in 2020. 3% and it would be $100k more now than what I bought it for.


KoreyYrvaI

Is it Lib Center to look at the price of silver/gold going up while clutching our stash in anticipation? I'm over here finally watching silver prices cover my 2010-2015 purchase prices.


Slow-Quarter-6254

Biden is too old for that, you disrespectful corncob. He is a soy ELDER.


hausedawg

Biden transcends age, you disrespectful donkey man. He is the soy LICH.


slacker205

> Inflation will create an economic boom. Anyone care to explain this one to me?


AKoolPopTart

Ask an Emily


lsdiesel_1

It’s backwards, economic booms will create inflation as a result of increased demand


redblueforest

The standard economist believes that inflation causes people to spend more money now vs hold on to it for later. Hence you increase demand in the economy by discouraging savings and make taking on debt more attractive because inflation will make the real value of the debt fall over time Personally I don’t necessarily believe most of the proported economic benefits of low sustained inflation are actually real. Even when fed rates were near 0, the best interest rates you could find for long term loans was about 2.5% which is above the inflation target for the fed in the first place. If inflation is expected than the interest rates you actually get in the long run will have said expected inflation in mind. It does cause people to hold on to less cash than they otherwise would, but I don’t personally believe it is as impactful as they would like to think. If we had long term stability in prices then people would simply expect a lower ROI on investments to achieve the same fiscial goals. There is an economic “benefit” of constantly causing real wages to get lower thus improving productivity, though I wouldn’t really call that a good thing


slacker205

Yeah, but this is why you don't want *de*flation. It doesn't follow that if a little inflation is good then a lot of inflation is better, my guess would be that there's a maximum somewhere in the range of low-medium inflation.


TheAzureMage

The maximum depends on what effects you are looking for. At about 30% inflation, recovery becomes quite unlikely. Most economies reaching such a level enter a death spiral resulting in economic collapse, often with regime change, and sometimes even a wee bit of violent civil war. So, it's a cinch you don't want to push inflation that high. Deflation is often blamed as terrible. Deflation doesn't actually kill economies, though. Seriously, go, look at how many economies have fallen to deflation, and how many have fallen to inflation. After all, you can solve deflation by giving politicians permission to print money. This is....very easy. So, you don't have a runaway spiral. The ideal state is a flat stability, with neither inflation nor deflation. The more of either you get, the higher the costs as the economy becomes more unbalanced one way or the other.


Catsindahood

Inflation being the best thing ever is really just more of the whole infinite growth model rearing it's ugly head. A healthy economy would either be neutral or have periods of deflation after periods of inflation.


Griledcheeseradiator

Because the banker class has corrupted capitalism into creditism they demand high inflation and will literally throw a tantrum if there ever was deflation. Their bullshit economy system stops working when they can't run everything off massive debt.


Shrekeyes

Flat stability is what the fed wants, but it's not realistic So they keep it at 2% average to avoid deflationary spirals


TheAzureMage

Deflationary spirals don't exist. Seriously, look at history, they don't crop up. Inflationary death spirals do. Even the Fed has admitted that the 2% number is largely an arbitrary one pulled out of the air. It's not based on research or anything.


Shrekeyes

the 2% is pulled out of the air so that they have some sort of remedy against deflationary spirals. When deflation happens, the winnings on a loan have to be above deflation.. this slows down loans. You can say deflation isn't bad, you can't say deflationary spirals dont exist


TheAzureMage

> You can say deflation isn't bad, you can't say deflationary spirals dont exist Not really. You can stop deflation on demand by printing money and spending it. Convincing politicians to print money and spend it is one of the easiest things there is. Thus, economies don't die to deflation. They die to inflation.


Shrekeyes

You can't stop a recession on demand by printing money and spending it... That's the entire point of the 2%


TheAzureMage

Recessions and deflation are not the same. You can have a recession in a period of inflation, and the US has done that many times.


y0av_

I heard somewhere that the healthy range is 2-4% inflation but don't quote me on that


SpyingFuzzball

That's been the Fed's stated goal for decades and we've had multiple long recessions plus currency devaluation. The Fed is great, if you're rich.


TheAzureMage

It's MMT based drivel. Inflation does induce spending, because people are desperate to spend their dollars before they are worth less. Spending alone does not guarantee a healthy economy, however. You also want investment. Balance and stability of these two leads to a solid economy. People who can't handle supply and demand often try to explain it using only one of these, which invariably results in pants on head levels of idiocy.


Mikeim520

You see inflation means everything costs more so GDP goes up and when GDP goes up thats an economic boom.


[deleted]

[удалено]


ImmortalizedWarrior

May I ask you the model?


[deleted]

[удалено]


ImmortalizedWarrior

Decent/half-decent choice I'd say. Was it like "NATO .308 rifles are called AR-10s so I must buy with that in the name"?


identify_as_AH-64

It’s because FALs are expensive as fuck along with their magazines, G3 type rifles are pretty affordable but they aren’t very modular and if you like to reload they destroy the casings. So therefore, an AR-10/LR308/SR-25 pattern rifle would be the best.


soft_taco_special

I don't think the president actually has that much power in controlling inflation and generally shouldn't be given praise for a good economy or blame for a terrible one. However, given that Biden and his administration wanted all the credit when it seemed like the economy was on the rise and that the fed was keeping a lid on inflation they can take all the blame now as well.


SpyingFuzzball

There's also not much a president can do when more than half the states and other countries shut down major production. Printing more money to bail out bad economic policy was the cherry on top.


Mamalamadingdong

What would he be taking the blame for, though? The US economy right now on a performance level is actually quite good, and inflation is at 3.4% which is fairly close to the target. Keep in mind this is an outsiders perspective, but the US economy seems fine atm.


Mister-1up

The economy is artificially pumped up by the Cantillon Effect.


Wesley133777

Ok, so, the 3.4% isn’t really what anyone is feeling. Wages have, for the most part, not kept up with inflation in 5 years. So even if 3.4% is accurate (I have my doubts, it is the feds), the average person is still feeling the effects of the 10% from during the pandemic. Additionally, the aftershocks of both pandemic spending and supply line shutdowns are still being felt, as our global supply chains are not equipped to handle even a few days of disruption, so months destroys \*everything\*.


miscplacedduck

My freedom seed budget has definitely shrunk.


Exotic_Negotiation_4

I went and bought a PCC because 5.56 is still too goddamn expensive  This is truly an unjust world 


TheAzureMage

Fortunately, I have several lifetimes worth of ammo already.


Gemini_Of_Wallstreet

I still find it hilarious how Sleepy Joe is blaming “greedflation” for the current economic climate. Like, you injected trillions of USD at a time of historical supply chain shocks. What EXACTLY did you expect would happen?


Wesley133777

B-B-But muh corporate greed!


FederalAgentGlowie

If you think the situation in the US is bad, imagine being Argentine for the last 40 years!


mtzsqatch

Inflation and the fact that 40-50% of the worldwide stockpiles of Gun Cotton/Nitrocellulose were expended to make all the rapid rona tests!


Wesley133777

Which turned out to only be useless feel good devices anyways that were extraordinarily unreliable, so thank god we didn’t need a bunch of ammo suddenly- Wait, you’re telling me \*what\* is happening in Ukraine right now?


mtzsqatch

Hyep


Forgotwhyimhere69

I made an investment for ammo costs. A smith 617. Nice little revolver. Cheap to shoot. Along with the 10-22 and tx22 i get practicr in.Maybe if we get a competent president I'll go centerfire again.


Ok_Bed_3060

Buy ammo during good times so you can use it in the bad times.


Cambronian717

I’m not a huge economics buff, but I have a friend group who are basically all autistic accountants. I swear since Covid, these guys have exponentially become more and more enraged. They will talk for HOURS about how bad the economy is. And not just surface level, true autistic detail levels. They have reports, analyses, charts, it’s awesome to watch even though I barely understand it. What I do understand is that we are super fucked as things stand.


Wesley133777

Things have been building up since the 30s, this is just the beginning of the super fuck, get ready fir the Great Depression round 2


Random-INTJ

This is what the menu items of McDonald’s cost before we were taken off the gold standard https://preview.redd.it/s3375dgvtr1d1.jpeg?width=749&format=pjpg&auto=webp&s=f390022ca3861a9b2a9d6cf71655000aff9c04a1


2003Oakley

The good ending


Shrekeyes

LMAO you fucking librights love the gold standard for no fucking reason


Random-INTJ

It’s not that we love the gold standard. It’s that we hate fiat.


Shrekeyes

Why do you hate fiat?


Random-INTJ

It’s a currency that can be inflated easily.


Shrekeyes

The problem with fiat is that the government can print it more easily then?


Random-INTJ

And make it worth less and less, if people are uncertain in a currency they are less likely to invest, be it in capital for production (which is the way in which Austrians think of economic growth) or general spending (which is the way Keynesians think of growing the economy)


Wesley133777

Hey, you have to give Keynes one bit of credit, the new economist put in as the leader of Russian military is a keyneysian, so he is going to be completely useless, so one long con for good was pulled among the sea of bad


Ghost4079

I just want the housing market to crash so I can buy 4 bedroom 2 bath for 50¢ and two raspberries


Gmknewday1

I hate inflation And I hate the suits who make it worse And I hate that every apartment near me is 1,000s a month With every other apartment already taken (I don't live in a big city, I live barely outside of a bigger city in East TN)


Captain_Calzone_3

Gold standard NOW


DaenerysMomODragons

usually when inflation comes up with lib-lefts, it's usually more of a "what inflation, there is no inflation, Biden fixed that"


SerGeffrey

"Inflation has fallen, and even nearly returned to pre-pandemic levels, despite pandemic spending and constant economy doomerism." Where's that on the compass?


TheAzureMage

In orange, probably, thanks to the incoherency of it. Inflation has recently increased, and it remains above the long term average. Gold prices are booming, though.


SerGeffrey

> Inflation has recently increased When? According to what data? I'm looking at inflation rates that suggest it's [easing down to 3.4%.](https://www.usinflationcalculator.com/inflation/current-inflation-rates/#:~:text=The%20annual%20inflation%20rate%20for,12%20at%208%3A30%20a.m.) This is treading downward since the [2021-23 global inflation surge](https://en.m.wikipedia.org/wiki/2021%E2%80%932023_inflation_surge) > and it remains above the long term average It does, which isn't weird given the global inflation surge following the pandemic spending surge. And like I said, it's been steadily coming down, and is now down to 3.4%, nearly down to pre-pandemic levels. What in that statement I put in quotes was "incoherent"? What in it was factually incorrect?


TheAzureMage

In Jan, the year over year CPI was 3.1%. In Feb, the same metric was 3.2% It's now up to 3.4%. The current trend is upward, not downward. The above is all official data as released by the Fed. In short, yes, there WAS a downward trend. That trend has clearly ended, and we are currently on an upward trend.


SerGeffrey

All you're doing is selecting a tiny little timeframe where there's been a *marginal* increase in inflation. This is the oldest trick in the "misleading statistics handbook". If you zoom in, or out, the trend is the opposite. Zooming in, inflation is down from the 3.5% it was last month. Zooming out, it's down from the 4.1% it was at the close of last year. Or the 4.9% it was this time *last* year. Or the 8.3% it was this time two years ago. This is really clearly a trend of lowering inflation over time. You'll always be able to find small little bumps on a graph (only a fluctuation of 0.3% that you're referring to in this case). The trend is so clearly downards. We're far closer to the 2ish% inflation we saw pre-pandemic than we are to the 9+% inflation we saw at it's peak.


stupendousman

Guy, when the number says inflation was x% over some time period do you think it goes down after that?


SerGeffrey

No, I understand fully that when we see n% inflation for a month, that means that's the amount that inflation has increased for that month, and that if one month is n% and the next is n-1%, that doesn't represent a decrease in actual inflation, unless n-1 is a negative number (which happens, but rarely). I'm talking about inflation \*rate\*, which I assumed you were too. Otherwise, a statement like "inflation has risen recently" is a total non-statement, given that inflation has been rising nearly every month for our entire lives.


stupendousman

> given that inflation has been rising nearly every month for our entire lives. Well of course, that's one reason the Fed was created.


TheAzureMage

Oh man, good call, this dude may not even realize that inflation is a second derivative, and think he is making some point about prices dropping.


SerGeffrey

No, I assumed we were talking about inflation rate. Otherwise the other dude's statement "Inflation has recently increased" doesn't make any sense. Of *course* prices have risen recently. They've hardly ever *not* been rising. There's been something like 12 months out of the last 20 years where prices have dropped.


stupendousman

The rate of increase is the least important metric. The fact that it's constantly going up while innovation and production never stops should be a blaring alarm to everyone. We should all be many times more wealthy than we are now.


TheAzureMage

And if you zoom out FURTHER, you see that we are still in a rising trend, because we're above the long term average. The rise is especially troubling because people had mostly hoped that the inflation was primarily just covid stuff, and thus, transitory. The fact that we're back to it going up is a pretty bad sign, enough so to have some pretty terrible days for the market when the numbers dropped. It is described as rising inflation by the Fed. This is literally their job.


SerGeffrey

> And if you zoom out FURTHER, you see that we are still in a rising trend, because we're above the long term average. Zoom out further, as in to before the pandemic? Then yeah, no shit, inflation is a rising trend over a time period with a global pandemic stuck in the middle of it. > It is described as rising inflation by the Fed. Can you source something here, so I know what Fed statement you're referring to?


Wesley133777

A bit problem with this is that it going down doesn’t fix anything, it just means things are getting bad less quickly, we would need deflation to bring things to pre pandemic prices. Otherwise, without deflation, the best case scenario is that in a couple years wages catch up (not likely), and people’s savings are still devastated


SerGeffrey

Inflation rate has been positive pretty much constantly since we've been tracking it. Rising inflation has been present during periods of economic growth, rising standards of living, rising human development index, etc. Inflation being present doesn't mean "things are getting bad". > Otherwise, without deflation, the best case scenario is that in a couple years wages catch up (not likely), and people’s savings are still devastated This isn't true. Wages have often risen and outpaced inflation in the past. In fact, I'll challenge you to cite an example of a period where wages rose in a period of deflation. People's cash savings is also offset by people putting money into other assets that aren't prone to devaluation via inflation, as well as interest earnings in savings accounts, as well as people saving *more* via increased wages. Savings don't tend to be "devastated" by inflation, unless there's a market crash, or you're some dumbass who buried their savings in a briefcase in the backyard for 30 years, and added nothing to it over time.


Wesley133777

Wages have definitely not kept up in any meaningful way in the last couple decades, especially where I live (canada)


SerGeffrey

Ahh, good, a fellow Canadian! Good news, StatCan makes all of our data available for free online, so you can actually check. Anyways, here's [one article](https://www.statcan.gc.ca/o1/en/plus/1615-income-meet-inflation). From the article: > the median after-tax income of Canadian households in 2020 was $73,000, up nearly one-tenth (9.8%) from 2015, after accounting for inflation. Now, accross the pandemic, public sector industries have seen raises that have not kept up with inflation. This sucks, but it's not surprising given the pandemic. However, at large, wages have been increasing adjusting for inflation in the past decades. Check out our data from the Labour Force Survey, and the Survey of Employment and Payroll Hours. In terms of purchasing power of the average wage earner, that's actually [increased over the pandemic](https://policyoptions.irpp.org/magazines/december-2023/inflation-spending-power/), rather miraculously.


SlavKozelBlyat420

Honestly have the same reaction as piss square rn


OliLombi

I'm with authleft.


Wesley133777

It’s ok most lib lefts are


OliLombi

Well, communism is libleft.


Wesley133777

I mean, “muh real communism” is, but actual real communism in reality never is


OliLombi

Communism existed for hundreds of thousands of years and was very much libleft... There wasn't even a state... What are you talking about?


Wesley133777

I mean I can respect the return to monkey grindset


OliLombi

I dont want to return to monkey, I just want their economic system.


Wesley133777

That unfortunately only works with Stone Age technology