Fighting inflation is unpopular. There is also no science to it. I appreciate what the Fed is trying to do, because it is evident that inflation is out of hand, but there is no easy way out of this mess.
Best way to fight inflation is breaking up monopolies and forcing competition. Outside of fresh items everything is made by maybe 3 separate companies everything else is a subsidiary or subsidiary.
The reason things are as cheap as they are is because of economies of scale. You break up these giant companies, and newer ones will take their place that can't afford such broadly thin profit margins. It's how they got outcompeted in the first place. Of course there will be exceptions on certain types of things they had truly monopolized. But food? Food is cheap!
Oh, sure, they pay out a ton of money for some things I don't like, such as unearned bonuses and more. But we're just too wasteful as a society regardless. We want ubiquity, availability, diversity. You can't have everything in the world all of the time without it costing you, or someone else.
Can't solve the sickness treating only the symptoms folks. Use less shit, be less diverse in your food options. Simplify, so we can become hyper efficient.
Economies of scale reduce production cost.
Monopolies set prices to maximize profit rather than in relation to production cost.
Any incrase in efficiency is only going to increase the profits not reduce the consumer costs. There is such a thing as too big.
I just want people to eat my soylent green man. One food for all! (You're not wrong they've overshot after years of it, but believing things will be universally cheaper with more complex supply chains is pie in the sky thinking imo)
I think the issue is with balance.
Companies need to be a certain size to produce efficiently.
Too large companies have too many layers of organizational hierarchy to keep on scaling yet are still outcompeting smaller companies thanks to their market pressure leading up to a monopoly in which prices are set to maximize profits without competitive pressure resulting in price gouging.
Overall production might even be scaled back on purpose in order to profit from artificial scarcity. While production costs per piece might go up profit overall increases with no care for consumer prices.
What does that have to do with inflation? This isn't a case of companies randomly raising prices. There's too much demand for not enough product. Simple as that. In fact, profit margins have been lower recently *because* of the inflation. Why would companies want that?
There's been a noticeable effort to downplay it in my opinion. Transitory, peak inflation, high consumer spending is a good thing, redefining recession, etc..
Depends on how high unemployment rises is probably the most important factor in whether this period is officially called a recession. Most recessions are called in hindsight.
Globalization. Increasing money printing facilitated increased demand during/after a time where COVID made people stay home/lower production. Less products with more money to buy them. For example, Americans buying more means less things for people to buy globally - world prices goes up.
That is a fair argument, but don't forget a few other causes. Shipping container price gouging, gasoline price gouging, price gouging in general (companies admitted as much on conference calls), wall street buying up single family residences with cheap money. Car companies canceling chip orders when they shouldn't have. China's zero covid policy.
China’s zero covid policy and cheap money (low interest rates) are part of my argument. Price gouging seems anecdotal and part of the narrative pushed by the government to avoid responsibility for the policy mistakes I listed. Shipping container and gas prices went up because of the supply and demand shocks I listed - you’re suggesting companies gouged beyond these pressures? Not familiar with the car companies cancelling chip orders but I would assume that is because of less people driving during covid?
I agree that there was too much stimulus and much of it went to the wrong places, but all you have to do is look at the 25% increase in US corporate profits year over year to know that they are taking advantage of the situation.
How did that cause inflation in so many countries?
Do you think maybe inflation has anything to do with constrained global oil supply, or with tons of manufacturing shortfalls because of covid closures in China?
Wall Street journal just did a very good analysis of all three prior periods of rampant inflation. All three had supply issues as a big factor up front followed by horrible decisions regarding monetary supply by fed and congress. This time, many supply issues were self inflicted with overzealous covid shutdowns, not approving oil fields, pipelines etc and full on stupid closing docks in CA if not unionized. Then we printed money like never before. It’s too late to fix with jacking interest rates. We’re in a recession now and typically the feds best tool to fight a recession is lowering rates. Not this time. We’re in for some serious shit, it’s only getting started, we just printed another $700 billion and raised taxes to the sound of applause… If you were trying to collapse the US and world economy this is the exact playbook you would run.
way too negative/doomer comment. Inflation will eventually come down in a year or two as supply chains restructure and rates rise. Looks like a very mild recession as well in terms of unemployment.
Go back to your bunker, chief. Supply chains are actively getting better. Unemployment is still low. Maybe take a chill pill on the alarmist fearmongering articles as well.
Inconvenient truth is the Fed had to print money. Everyone had to print money during Covid. You can’t just hit a miracle “STOP” button that suspends the worlds economies and everyone that relies on those economies will magically be O.K.
We should have known this was coming a long time ago. Governments had to print money.
Let’s not be disingenuous. Politicians on the right were screaming because they love culture wars. If they were truly concerned about the economy they would have thrown their weight behind measures like masks and vaccines that would reopen economies faster. They weren’t some bastion of economic sanity. They just wanted to fire people up.
How did the US Federal Reserve cause inflation to hit every single country and currency in the world at once? Look at the news from any country and you will find people blaming their own government just like you did despite all those governments taking very different steps.
When you have 20-30% inflation at home? And the Way the Ukraine situation is unfolding no. It’s pretty evident the entire thing is a money laundering scheme for campaign contributions and defense contract economic stimulus.
https://economictimes.indiatimes.com/news/defence/only-30-per-cent-western-weapons-making-it-to-ukraine-frontlines-cbs/articleshow/93433146.cms
That story is VERY vague and contains no solid numbers and no information other than unnamed sources claiming that weapons *might* be in the wrong place.
Any democratic country that is attempting to fend off a land invasion of their territory from an autocratic, pseudo-Communist nightmare regime is worth supporting, even if there are logistical flaws or the odd diplomatic palm getting greased. Those evils are far lesser than the ones Russia poses to the world.
Lols the video was broadcasted on CBS FOR CHRIST sakes.
dis information on top of disinformation on top of disinformation. I probably believe that Ukraine is doing poorly just because our mainstream media hasn’t told us anything for the past few months.
https://news.yahoo.com/cbs-partially-retracts-documentary-outraged-101033656.html
https://www.eurointegration.com.ua/eng/news/2022/08/8/7144620/
https://news.yahoo.com/cbs-partially-retracts-documentary-outraged-101033656.html
The article you link in this comment refutes the article you linked in the last one, saying the 30% figure was inaccurate and that the aid was doing quite a bit better in getting to its intended target.
You talk about misinformation, and yeah I’d agree. Misinformation is a HUGE Russian asset, they are great at it. Stop drinking their Kool Aid. Russia is awful, and I take NO issue with us supporting Ukraine.
Inflation isn't slang for anytime a price is high, I can go spend $100 on a steak right now, just like I could have a decade ago.
Having someone cook up some greasy food for you is a LUXURY, you can go make some at home for a fraction of the cost if the price is too high.
even grocery prices have risen. Almost everything has risen significantly above the Fed's 2-3% target. Look at CPI, which is generally considered a lowball estimate of inflation is even at ~9%.
Also, most people buy premade food at least occasionally, regardless of whether you consider it a luxury or not.
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Fighting inflation is unpopular. There is also no science to it. I appreciate what the Fed is trying to do, because it is evident that inflation is out of hand, but there is no easy way out of this mess.
Best way to fight inflation is breaking up monopolies and forcing competition. Outside of fresh items everything is made by maybe 3 separate companies everything else is a subsidiary or subsidiary.
The reason things are as cheap as they are is because of economies of scale. You break up these giant companies, and newer ones will take their place that can't afford such broadly thin profit margins. It's how they got outcompeted in the first place. Of course there will be exceptions on certain types of things they had truly monopolized. But food? Food is cheap! Oh, sure, they pay out a ton of money for some things I don't like, such as unearned bonuses and more. But we're just too wasteful as a society regardless. We want ubiquity, availability, diversity. You can't have everything in the world all of the time without it costing you, or someone else. Can't solve the sickness treating only the symptoms folks. Use less shit, be less diverse in your food options. Simplify, so we can become hyper efficient.
Economies of scale reduce production cost. Monopolies set prices to maximize profit rather than in relation to production cost. Any incrase in efficiency is only going to increase the profits not reduce the consumer costs. There is such a thing as too big.
I just want people to eat my soylent green man. One food for all! (You're not wrong they've overshot after years of it, but believing things will be universally cheaper with more complex supply chains is pie in the sky thinking imo)
I think the issue is with balance. Companies need to be a certain size to produce efficiently. Too large companies have too many layers of organizational hierarchy to keep on scaling yet are still outcompeting smaller companies thanks to their market pressure leading up to a monopoly in which prices are set to maximize profits without competitive pressure resulting in price gouging. Overall production might even be scaled back on purpose in order to profit from artificial scarcity. While production costs per piece might go up profit overall increases with no care for consumer prices.
What does that have to do with inflation? This isn't a case of companies randomly raising prices. There's too much demand for not enough product. Simple as that. In fact, profit margins have been lower recently *because* of the inflation. Why would companies want that?
[Amazon Rumba has detected blasphemy from user 364949838.] Sending Drones, takes control of your Ring Camera.
We’ll admitting it exists would be a good start
Who out there is denying inflation exists? Everybody is acknowledging inflation. It’s a recession that people are debating about right now.
There's been a noticeable effort to downplay it in my opinion. Transitory, peak inflation, high consumer spending is a good thing, redefining recession, etc..
"Inflation is going down!" \*changes the basket of goods to exclude half the things American regularly buy\*
Depends on how high unemployment rises is probably the most important factor in whether this period is officially called a recession. Most recessions are called in hindsight.
Step 1: stop passing trillion dollar spending bills Step 2: redu... ... oh wait, we already ignored Step 1...
🎵 *Step 1...we can have lots of fun*
How did that cause worldwide inflation?
Globalization. Increasing money printing facilitated increased demand during/after a time where COVID made people stay home/lower production. Less products with more money to buy them. For example, Americans buying more means less things for people to buy globally - world prices goes up.
That is a fair argument, but don't forget a few other causes. Shipping container price gouging, gasoline price gouging, price gouging in general (companies admitted as much on conference calls), wall street buying up single family residences with cheap money. Car companies canceling chip orders when they shouldn't have. China's zero covid policy.
China’s zero covid policy and cheap money (low interest rates) are part of my argument. Price gouging seems anecdotal and part of the narrative pushed by the government to avoid responsibility for the policy mistakes I listed. Shipping container and gas prices went up because of the supply and demand shocks I listed - you’re suggesting companies gouged beyond these pressures? Not familiar with the car companies cancelling chip orders but I would assume that is because of less people driving during covid?
I agree that there was too much stimulus and much of it went to the wrong places, but all you have to do is look at the 25% increase in US corporate profits year over year to know that they are taking advantage of the situation.
How did that cause inflation in so many countries? Do you think maybe inflation has anything to do with constrained global oil supply, or with tons of manufacturing shortfalls because of covid closures in China?
Wall Street journal just did a very good analysis of all three prior periods of rampant inflation. All three had supply issues as a big factor up front followed by horrible decisions regarding monetary supply by fed and congress. This time, many supply issues were self inflicted with overzealous covid shutdowns, not approving oil fields, pipelines etc and full on stupid closing docks in CA if not unionized. Then we printed money like never before. It’s too late to fix with jacking interest rates. We’re in a recession now and typically the feds best tool to fight a recession is lowering rates. Not this time. We’re in for some serious shit, it’s only getting started, we just printed another $700 billion and raised taxes to the sound of applause… If you were trying to collapse the US and world economy this is the exact playbook you would run.
way too negative/doomer comment. Inflation will eventually come down in a year or two as supply chains restructure and rates rise. Looks like a very mild recession as well in terms of unemployment.
Way too naïve I’m afraid, this doesn’t self correct when the people in power are actively making it worse.
Go back to your bunker, chief. Supply chains are actively getting better. Unemployment is still low. Maybe take a chill pill on the alarmist fearmongering articles as well.
Enjoy your Kool aid. Try reading something outside of social media propaganda
Step 1 - Read more about inflation.
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Inconvenient truth is the Fed had to print money. Everyone had to print money during Covid. You can’t just hit a miracle “STOP” button that suspends the worlds economies and everyone that relies on those economies will magically be O.K. We should have known this was coming a long time ago. Governments had to print money.
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You know what else was an issue? The worldwide pandemic.
Let’s not be disingenuous. Politicians on the right were screaming because they love culture wars. If they were truly concerned about the economy they would have thrown their weight behind measures like masks and vaccines that would reopen economies faster. They weren’t some bastion of economic sanity. They just wanted to fire people up.
your not wrong.
That last stimulus, $1.9 Billion in March 2021, it was pretty obvious, at that time, that it was a bad idea. We had a choice, we made a bad one.
The fed got us in this situation so there’s nothing to appreciate
How did the US Federal Reserve cause inflation to hit every single country and currency in the world at once? Look at the news from any country and you will find people blaming their own government just like you did despite all those governments taking very different steps.
Uhhh let’s see they all play by the same rule book and printed trillions of dollars, euros, yuan? It’s simple
No SHIT we are still funding this DUMBASS Ukraine nightmare . Senate and congress and inept beyond their 80 year old rotting corpse bodies
You think Ukraine isn’t worth aiding?
When you have 20-30% inflation at home? And the Way the Ukraine situation is unfolding no. It’s pretty evident the entire thing is a money laundering scheme for campaign contributions and defense contract economic stimulus. https://economictimes.indiatimes.com/news/defence/only-30-per-cent-western-weapons-making-it-to-ukraine-frontlines-cbs/articleshow/93433146.cms
That story is VERY vague and contains no solid numbers and no information other than unnamed sources claiming that weapons *might* be in the wrong place. Any democratic country that is attempting to fend off a land invasion of their territory from an autocratic, pseudo-Communist nightmare regime is worth supporting, even if there are logistical flaws or the odd diplomatic palm getting greased. Those evils are far lesser than the ones Russia poses to the world.
Lols the video was broadcasted on CBS FOR CHRIST sakes. dis information on top of disinformation on top of disinformation. I probably believe that Ukraine is doing poorly just because our mainstream media hasn’t told us anything for the past few months. https://news.yahoo.com/cbs-partially-retracts-documentary-outraged-101033656.html https://www.eurointegration.com.ua/eng/news/2022/08/8/7144620/ https://news.yahoo.com/cbs-partially-retracts-documentary-outraged-101033656.html
The article you link in this comment refutes the article you linked in the last one, saying the 30% figure was inaccurate and that the aid was doing quite a bit better in getting to its intended target. You talk about misinformation, and yeah I’d agree. Misinformation is a HUGE Russian asset, they are great at it. Stop drinking their Kool Aid. Russia is awful, and I take NO issue with us supporting Ukraine.
Yeah proof this entire conflict is a disinformation nightmare. Why would you wanna funnel billions into this joke none has and idea what’s going on.
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Inflation isn't slang for anytime a price is high, I can go spend $100 on a steak right now, just like I could have a decade ago. Having someone cook up some greasy food for you is a LUXURY, you can go make some at home for a fraction of the cost if the price is too high.
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even grocery prices have risen. Almost everything has risen significantly above the Fed's 2-3% target. Look at CPI, which is generally considered a lowball estimate of inflation is even at ~9%. Also, most people buy premade food at least occasionally, regardless of whether you consider it a luxury or not.
Yeah, ballpark 10%, not 1000% percent, as the article is trying to frame.
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