I'm not asking if inflation currently exists - it definitely does - but I'm more curious to know if it actually is a big deal? Is it just a transitory thing or are there actual warning signs for larger issues?
Someone who is good at economics please explain
no one here is good at economics. none of us have ever read an economics book. all we know is no food venezuela 100 baboonillion dead
that thing rules, it's what I give to people who want an intro to Marxism
People keep talking about inflation but I think it’s because the prices of things have been kept artificially low for the past two decades. The prices of food and oil have been kept artificially low due to government subsidies while wages have also stagnated. A kind of play to maintain the status quo and keep workers placated while the uber rich gobble up all the wealth.
It’s a charade that could only go on so long and now because of inherent flaws in the system it’s becoming unsustainable and prices are rising to where they naturally would be. I’m not sure how accurate of an assessment this is I’m just basing it off personal observations.
As a dude from Argentina, you get used to, especially to not save money. The problem is when inflation is way higher than salary increases
The problem is when inflation is way higher than salary increases
minimium wage haven't gone up in the US in like 40+ years lol
Yeah well, for the salaries to increase, despite the constant inflation being a given, we have massive strikes of any area you can imagine all the time, even in good years.
So yeah, inflation in the US seems like dark times for workers given the almost non-existence of unions. But good time for organizing and radicalization :meow-shining:
I honestly have no hope, the security state here is too strong and most people really don't seem to care or be bothered by any of this. There's just a pervasive sense that you can't do anything about it.
The healthcare system here alone is enough cause to overthrow the government but no one gives a shit about that lol
Inflation also bothers the mythical "Middle Class" (actually petit bourgeois, rich people who are safe from healthcare bankruptcy or homelessness) and even higher rich people too; (of course its not life-threatening for them) so that's why you hear news about it.
Inflation around 2-4% is normal (as far as capitalist economies go) and there's generally no economic growth without some inflation. What we are seeing now is higher than that, but the problem is not inflation per se but that it's looking like stagflation: inflation high, economy doesnt grow (returns on capital investments were super low even before this shit show so everyone is speculating on the financial markets instead of building factories, and, as the result, a third feature of stagflation:), relatively high unemployment. This isn't looking like a temporary inflation bump anymore, more like the 70s.
What's the difference between how stated (nominal?) inflation is found versus real? Does real inflation look at a lot more goods, or does it take only necessities into account?
IIRC they've been redefining inflation for years to look at fewer and fewer/different things in order to keep the number artificially low. It isn't at all representative of cost of living.
Is this like how inflation would be a billion % if we included housing and secondary education costs?
The CPI (Consumer Price Index) weighs housing, food, gas, cars, education, and medical care the same as iPhones, TVs, computers, rubber ducks, and Dude Wipes.
So a massive increase in price of necessities can be neutralized by an equally massive decrease in price of toys.
Inflation is when you've got a giant bottle neck at ports of call. And the bigger the bottleneck, the more inflation you've got.
:-p
Everything I've read suggests this is a temporary problem with shipping and not a real resource constraint, a fundamental problem with productivity, or a surge in demand.
Maybe everything I've read is wrong/bullshit, but the whole "US/UK literally doesn't have enough truck drivers" thing seems to imply solving the bottleneck will resolve the supply shortage and return prices to a more normal level.
Gas prices jump around all the time. I remember when they were pushing $5/gal and when they fell back down to under $2.
And the McRib Arbitrage has been a thing since the 90s at least.
Yes, inflation is bad right now, and yes, it is a problem in the short term. Long-term, it remains to be seen if it will end up being much of a problem. And, of course, whether it will continue.
So what would be the most effective way to offset this issue?
exactly! give away clothing and furniture, carpool, etc etc etc. Anything that makes greater use of things we already have and reduces demand for new things should help.
There are about 3,300,000 people working in call centers in the US, less than a third work from home. All of the them should be working from home; it'd free up the majority of the space the call centers are in for more productive use (housing, factories, green space, recreational facilities, etc), and reduce costs to both society overall and the individual workers by putting an end to a massive amount of commuting.
And COVID-19 quarantines resulted in the entire industry proving that they could handle working from home but a ton of them have/are shifting back to in office work. I guess we'll just all keep heating the planet up and giving each other covid so that executives can walk around populated office buildings and feel important.
one caveat: because of the poor housing conditions in the US, many people don't have a suitable location to work from home. for example, it can be hard to work in a 1 bedroom apartment with 4 other people, especially if talking is involved.
I don't know. Call centers are relatively crowded, so the default work experience is already that there will be a ton of audible conversations in the background that you have to tune out.
It's stressful, but it's not a new form of stress.
EDIT: Also reduced transportation costs could allow for moving to better housing. It would also help if some of the money the business would save could get passed along as increased wages, but you know how the hogs are so that's obviously not going to happen.
Probably best to just overthrow the whole thing and establish a DotP.
That's interesting. Can you explain how that would help with inflation?
Because if people get wealth transferred from the rich while inflation goes up, wealth inequality goes down, and it doesn't matter as much or at all if the price number goes up, unless it's extremely fast
It also make debt go bye bye
Inflation has been above 5% every month for the past 5 months. Last time it was even close to this level was in 2008 right before the drop and it only took 3 months to set it off then. Take into account the fed is definitely cooking those numbers to bring it down lower. Many other reports are showing it higher. Even up into the teens. Couple that with the fact the reverse repo rate has been above 1 trillion for over 40 consecutive days the economy is in the shitter and we are just waiting to see what's gonna be the straw that breaks the camel's back. Additionally China's Evergrande is dragging their real estate market into the ground, which many large US banks had invested in, and last I heard (it's been a minute so idk if this has chsnged) Xi wasn't going to bail them out and any help to their investors wasn't being extended to foreign investors (lol eat shit America). Evergrande may be the trigger to start this off and if good ol Xi refusing to bail them out takes down the US economy I'm going to laugh so hard I'll shit a brick. When this thing goes it's gonna make the 2008 crisis look like a pot hole while driving off a cliff. (I hope)
I believe china is planning to nationalize Evergrande and bail out at least the citizens that had bought assets.
Depends on the good. Its been most noticeable for me in gas (obviously), meat (bacon and beef have gone up at my local supermarket at least $2-$3), and the vending machines at work.
Matt Stoller did a good write up on why this is happening right now.
https://mattstoller.substack.com/p/counterfeit-capitalism-why-a-monopolized
The feds think it's transitory, meaning they think that it isn't a result from an ongoing policy so no change is being recommended. Current inflation is partially attributed to pandemic related shocks, supply bottlenecks and labor shortages. These issues are likely to resolve as time goes on. However we likely won't see much deflation.
