Inflation 101

Inflation 101

by coordi k

I love the idea of making America great

I don’t see how deportations, inflation, religion, or reduced education funding contribute to making America great though

Are you trying to blame inflation on trump or repubs? It seems like you are, but I think it is fairly common knowledge that inflation is too much money chasing too few goods and trump and repubs fought against most of the free money that still sloshes around the economy that dems worked hard to throw around after Covid and trump and repubs fought dems on trying to shut the economy down as little as possible.

Freedom of religion is bad? Or what are you saying?

The 3 expenses that have consistently gone up in price and outpaced inflation are also the 3 things that the govt is most involved with and have done the most to keep prices down - education, health care and home prices. Many Repubs are fighting for school choice which gives parents essentially a voucher to choose which school to send their kids to. So public schools will have to work like private schools have for so long to compete with other schools to attract students and their parents. This will force public schools to either catch up to private schools or shut down and be replaced by more private schools.

20 July 2024 at 10:21 PM
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230 Replies

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by housenuts k

this is semantics.

increasing the money supply causes prices to go up.

if your argument is that there is no inflation until prices go up, sure.

Not semantics at all.

Let’s use Arizona ice tea for an example

Money supply went up astronomically this last five years

Price of Arizona ice tea stayed the same.

People changing the prices of goods causes the prices to go up. Nothing else causes the prices to change. They may drive behavior or incentivize behavior but money supply doesn’t change prices.

AZ iced tea is a great example


by PointlessWords k

AZ iced tea is a great example

Lol please use something other than Costco dogs and Arizona iced tea, both which the founders of say they aren't changing the price of for reasons.


Pointless - Prices going up is a symptom of inflation, not the cause. I hope this helps.


Look at Zimbabwe or Weimar. One day bakers decided, hey we used to charge $1 for a loaf of bread. Let's jack it up it $10 million for fun


by PointlessWords k

Not semantics at all.

Let’s use Arizona ice tea for an example

Money supply went up astronomically this last five years

Price of Arizona ice tea stayed the same.

People changing the prices of goods causes the prices to go up. Nothing else causes the prices to change. They may drive behavior or incentivize behavior but money supply doesn’t change prices.

AZ iced tea is a great example

This is an incredibly dumb semantic argument. It's akin to arguing that firefighters frequently cause residential buildings to flood.


by Rococo k

This is an incredibly dumb semantic argument. It's akin to arguing that firefighters frequently cause residential buildings to flood.

If you had a degree in firefighting like PW, you'd understand.


by Didace k

Pointless - Prices going up is a symptom of inflation, not the cause. I hope this helps.

I would state this, in my view more accurately, as inflation is a symptom of lowering purchasing power. Inflation literally is the rise in price.


by PointlessWords k

Here’s a better example for you

Let’s say there is $15 trillion dollars in the money supply in our economy

Hotdogs cost $1 a piece

The fed enacts quantitative easing policies and pumps $5T into the economy

How much inflation does the hotdog price experience?

If all else is equal except the increase in the money supply then 0%.


by Didace k

Pointless - Prices going up is a symptom of inflation, not the cause. I hope this helps.

How does inflation occur when prices don’t change?


ITT we learn that roads getting wet causes it to rain. It might seem counterintuitive, but if you guys had a degree in hydrology, you'd understand.


I'm a big fan of the water cycle. In 3rd grade we simulated it via a ziplock bag taped to a brightly lit window.


by Tuma k

I'm a big fan of the water cycle. In 3rd grade we simulated it via a ziplock bag taped to a brightly lit window.

Agreed, I find it quite useful myself.


by PointlessWords k

How does inflation occur when prices don’t change?

by PointlessWords k

He caused literally a hundred thousand people to be killed during the two wars he supports.

How do a hundred thousand people get killed if guns and bombs don't kill them? Your argument is that guns are the cause of death, not war.


can we have an inflation containment thread?


by rickroll k

can we have an inflation containment thread?

Yeah, this discussion just keeps getting bigger and bigger. It's out of control.


by biggerboat k

Yeah, this discussion just keeps getting bigger and bigger. It's out of control.

yes but it's not because of inflation. it's because people are posting about it.


You guys keep blaming the wrong people for inflation. Blame the companies raising the prices. I mean blame the fed too obviously but blame the companies as well and more


by rickroll k

can we have an inflation containment thread?

On a related note, back on topic please.


Shouldn't the bitcoin guys be cheering for more inflation? Isn't that the whole point?


by PointlessWords k

You guys keep blaming the wrong people for inflation. Blame the companies raising the prices. I mean blame the fed too obviously but blame the companies as well and more

Why blame the fed if u think money supply or interest rates as no effect on inflation ?

FWIW inflation is result not a cause .
Didace, housenut, gorg ,etc all got it right .
Do a revision of your notebook


by PointlessWords k

So you agree that Costco changing the price is the inflation, not the 33% increase in money supply

It’s hard for people to afford higher prices if they do not have more currency (money supply moving up) in their hands available (in the economy) .

Ps: sorry king just saw your post.
Another containment thread about inflation should be imo .


by Montrealcorp k

Why blame the fed if u think money supply or interest rates as no effect on inflation ?

FWIW inflation is result not a cause .
Didace, housenut, gorg ,etc all got it right .
Do a revision of your notebook

the fed incentivizes companies to raise prices when they lower the cost of borrowing money/ increase supply


someone tell the greedy retailers to stop increasing prices!


What's the difference between 2 and 3? One is faded?


2 says silver certificate

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