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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by PointlessWords k

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

So interest rates have something to do with inflation (or deflation ) ?
Sorry I though u said previously interest rates as no effect on inflation .
Maybe I’m mistaken shrug


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

Tell me you don't understand inflation without saying you don't understand inflation.


Interest rates incentivize. They do not change the price.


by campfirewest k

Tell me you don't understand inflation without saying you don't understand inflation.

If the fed lowered rates but prices stayed the same, what would inflation be?


by Didace k

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

Prices going up is literally the same thing as inflation. Neither "causes" the other. Many factors can cause both.


by PointlessWords k

Interest rates incentivize. They do not change the price.

by PointlessWords k

If the fed lowered rates but prices stayed the same, what would inflation be?

Not aure what 4th grade commie horseshit your reading this week but most of your hookers are going to demand more money if all the PWs have more money to spend on them. And whats going to happen to the availability for the hookers who dont?


by formula72 k

Not aure what 4th grade commie horseshit your reading this week but most of your hookers are going to demand more money if all the PWs have more money to spend on them. And whats going to happen to the availability for the hookers who dont?

If the hookers raise prices then they made the inflation in that regard. If they don’t raise prices then you can’t say they experienced inflation. Hookers that don’t demand more money may experience more demand as they have a lower price than the competition.

Use AZ ice tea as an example instead.

Nothing happens to Arizona ice tea. They make less profit than they would if they raised prices. Demand might increase cause their price is lower than competition.

I’ve never read commie literature. I am western university educated with a finance degree and an interest in international finance. .

Wbu


You have a finance degree? How come you never mentioned it before?


by PointlessWords k

I am western university educated with a finance degree and an interest in international finance.

Keynesian economics?


Don’t know but prob


They didn't tell you during your studies for the degree?


by d2_e4 k

They didn't tell you during your studies for the degree?

Not at my second school. First one I think so but I don’t know


Weird. I would have thought that if you were studying for a finance degree, they would have told you which school of economics you were studying. Or maybe even studied a couple of different ones. But what do I know, I don't have a finance degree.


by PointlessWords k

If the fed lowered rates but prices stayed the same, what would inflation be?

Maybe that u have a non restrictive/non stimulative interest rates ?
The « famous » R star interest rates ?

Ps: the problem too is that monetary policies have lags .
And depending of the state of the economy, it varies .
But one thing is for sure , if people got more currency in their hands , prices goes up because demand goes up .
Why demands goes up ?
Because people can borrow more cheaply with lower interest rates .
I don’t see how this is controversial shrug.


Finance degrees are not ecomomics degrees. Overlap can be minimal or lots. More importantly, why are they all called Milton?


by PointlessWords k

If the hookers raise prices then they made the inflation in that regard. If they don’t raise prices then you can’t say they experienced inflation. Hookers that don’t demand more money may experience more demand as they have a lower price than the competition.

Use AZ ice tea as an example instead.

Nothing happens to Arizona ice tea. They make less profit than they would if they raised prices. Demand might increase cause their price is lower than competition.

I’ve never read commie literature. I a

What do you mean when you say that the hookers who didn't raise prices didn't experience inflation?

If the hookers charge $20 for a blowjob but it now costs 100 blowjobs to make a rent payment instead of 50 you would at least be sacrificing in labor costs despite the increase in demand for your less expensive blowjobs.

Also, why would selling a bottle of tea be any different than selling a blowjob?


by formula72 k

Also, why would selling a bottle of tea be any different than selling a blowjob?

That's what PW tried to explain to the organisers of the drinks expo when they came over telling him to pack up his booth.


by d2_e4 k

They didn't tell you during your studies for the degree?

Undergraduate economics degrees in the US aren't specialized by particular schools of economics. I can't imagine that finance degrees would be either, but I don't know exactly how they differ. Seems like they should be more based on practical applications used in corporate or investment careers, not focusing much on particular economic theories at all.


I studied finance 2005-2008.

2015-2020.

First school my main finance professor kept saying how the economy was going to tank cause people on Wall Street are liars or dumb, and we know they aren’t dumb.

Second school my main finance professor and I would argue about different indicators and if it meant a recession was coming.

Specifically I have a bachelors in science business management finance. I am happy my degree says BS and finance.


by formula72 k

What do you mean when you say that the hookers who didn't raise prices didn't experience inflation?

If the hookers charge $20 for a blowjob but it now costs 100 blowjobs to make a rent payment instead of 50 you would at least be sacrificing in labor costs despite the increase in demand for your less expensive blowjobs.

Also, why would selling a bottle of tea be any different than selling a blowjob?

If your price stays the same then your price didn’t go up and your price didn’t experience inflation.

Arizona ice tea doesn’t raise their prices when the supply of money changes. It pretty much destroys your guys’ argument. Gas is also similar here but that’s a special product.

We aren’t talking about rent and all these other prices. We are talking about hookers and the prices they set.


by formula72 k

Also, why would selling a bottle of tea be any different than selling a blowjob?

If the difference isn't that obvious I should probably be buying more tea.


by PointlessWords k

If the fed lowered rates but prices stayed the same, what would inflation be?

Inflation is zero, but shelves are empty. So the price of something becomes irrelevant when you can't buy it at that price. This is the thing people who advocate price controls miss.

by formula72 k

Not aure what 4th grade commie horseshit your reading this week but most of your hookers are going to demand more money if all the PWs have more money to spend on them. And whats going to happen to the availability for the hookers who dont?

I can't imagine the terribleness if prices for hookers were somehow fixed. I was just thinking empty shelves at the grocery store and Walmart.


by PointlessWords k

I am western university educated with a finance degree and an interest in international finance. .

When I opened this thread and saw that PW was participating in it, I thought to myself "finally, it is PW's time to shine. He has that finance degree which he brags about in every thread." All of that, just for him to say "inflation is when prices go up. The end."

You are a great big disappointment, PW!


Well people argue otherwise. Not my fault people are wrong.

And then they blame the wrong parties for inflation.

Kinda annoying to argue against


by chillrob k

Undergraduate economics degrees in the US aren't specialized by particular schools of economics.

When someone talks about "schools of economics" they are not referring to a group of buildings that teach students. All my classes in econ mentioned where particular theories resided among the "schools" of thought.

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