Inflation 101
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.
Yeah, but the point is that the dishonesty and stupidity lays at the feet of the government - not wall street. It was the govt that twisted the arms of banks to give everyone a mortgage in the name of fairness.
I thought I heard that greed was natural and it’s what push profits higher (bad mortgage loans for more profits) …..
Ps: false , no banks got their hands twist but since u can’t read and never provide anything to sustain your claim no need to respond .
I am pretty sure I dont agree with any of this
The dot com bubble bursting +y2k fears ****ed the economy up, oh and 9/11. I rememeber after 9/11 seeing GM ads for trucks with like 0.9% APR for 6 years or something. maybe even 0%
so the govt makes borrowing money cheap and easy, and everyone gets a house and a home equity line and everyone with stocks see their portfolio skyrocket... it was a wild time with lots of money on the poker tables
until 2008 came
Yes , you certainly know more about it then the IMF.
U might disagree with it but that doesn’t mean it’s not how the economy works .
Your second point I don’t get it much on what u try to say .
Just saying it’s 2000s QE as well
Don't know how you misunderstood this. I have an econ degree and obviously was not talking about buildings.
Did you get a degree or even take a class in "Keynesian Economics"?
I didn't, and that's what I meant.
D2 seemed to think that PW would have studied only a particular school.
Well, I thought he would have studied a couple and/or the differences between them. But from other replies, seems I might have got confused with "finance degree" and "economics degree". I didn't realise they were different things.
I think most people would assume people with finance degrees know what school of economic theory they are mostly being taught, I dont think it was a stretch that you asked me that regardless if I have a finance degree or a economics degree
Probably because the « true » equation of inflation is money supply AND the velocity of money increasing .
Not just an increase of money supply .
Exactly. The proximate cause of the bulk of the price increase of late is an increase in VoM post pandemic, not an increase in the money supply.
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I am truly enjoying the argument that there has been a million+ different products and services sold over the last 30 years and the fact that one of those million+ products hasn't increased its price over a 25 year period means inflation is because of greed from all those evil rich people who own companies not called Arizona Iced tea.
It's like a guy hitting the lottery and thinking the lottery is the safest investment out there because he won the lottery.
It is just a real pleasure hearing these types of arguments and trying to understand the mindset of people who have these types of thoughts.
I mean I’m not arguing that
Inflation is an important part of keeping our economy afloat.
If you don’t think evil rich people run America, man do I have some things to show you
My AZ is example is strictly to show you guys that companies are not forced to raise prices when money supply increases, contrary to what the majority of the thread argued.
I mean I’m not arguing that
Inflation is an important part of keeping our economy afloat.
If you don’t think evil rich people run America, man do I have some things to show you
My AZ is example is strictly to show you guys that companies are not forced to raise prices when money supply increases, contrary to what the majority of the thread argued.
Yeah, evil rich people don't run America. Democracy and the free market economy are too strong. They would have to get rid of both of those to have real control. The only way I see that happening is if instead of the dem leaders anointing kamala (likely against the will of the people) they anoint someone like bernie or AOC and then the repubs let them run unopposed.
I agree that just because the gov't prints more money than normal doesn't mean companies are forced to increase prices. However, when the gov't prints money at a higher rate AND puts that money into the economy then they are forced to increase prices - often times this is due to the products and services they are buying are going up so therefore their costs are higher.
Do you think people that used epsteins services to rape kids are evil?
clearly using AZ ice tea as an example they are not forced to raise prices, I do not know why you still think that.
In n Out is another example of business that was not forced to raise prices (even though they eventually did)
Do you think people that used epsteins services to rape kids are evil?
clearly using AZ ice tea as an example they are not forced to raise prices, I do not know why you still think that.
In n Out is another example of business that was not forced to raise prices (even though they eventually did)
Seem u need to reread last baham post and formula72….
I mean I’m not arguing that
Inflation is an important part of keeping our economy afloat.
If you don’t think evil rich people run America, man do I have some things to show you
My AZ is example is strictly to show you guys that companies are not forced to raise prices when money supply increases, contrary to what the majority of the thread argued.
You'd be correct that not every company would be forced to raise prices. It would make sense for certain businesses to do that if they were looking to drown out a competitor, to acquire, to just have more exposure to a certain group of people. Companies that don't have a lot of debt or have a lot of free cash are better positioned to do jsut that for a certain amount of time while others might not - AZ being one of them.
But it is never done for the reasons of generosity just like you would never sell your car, or your home, or your precious metals at some pre dated rate for good faith.
You should also be well aware of the realization that AZ choosing their method of pricing one particular item doesn't show that companies as a whole don't have to raise prices when the money supply increases.
PW, you should also look into a lot of the big start ups like Amazon or Netflix or several other that I cant think right now that used similar pricing theories for a long time. Do you think those companies were just real big sweethearts at the time?
Arizona tea isn't selling their tea at 99c out of the kindness of their hearts or to give back! It's their way of not having to spend money on advertising for a product that has a lot of name recognition. They'd probably take a bigger hit and piss off a lot of long-term customers if they were to change their 99c cans to 1.50 - possibly costing them more money on the rest of their products which would be disastrous to them.
It's the same strategy Costco uses with their 1.50 hotdogs. Costco los
often times this is due to the products and services they are buying are going up so therefore their costs are higher.
We don’t know why they have that strategy but they don’t give away profits just for fun .
Maybe they want to gain market share .
Maybe they know a competitor is in big trouble with debts so they keep their prices lower to force that corporations to bankrupt or to agree for a fire sale ?
Who knows shrug
Yes obv corporations do sometimes raise prices because they can just to make more money but usually the market will eventually even this out unless an economic cartel is invovlve .
But it’s just 1 tiny example u use trying to impose it on all others.
It’s highly unlikely and probably you overestimates the impact of those « excess » profits being a big driver of inflation.
Ps: Well formula beat me to it 😀
I don’t think I have been underestimating excess profits leading to inflation.
Excess profits are a function of the prices the companies choose.
We don’t have to live in a system where we are beholden to the companies and the fed for the value of our money. There are other systems besides corporate welfare capitalism that can net the citizen a higher median amount of wealth.
A good video for understanding the causes of inflation.
[I]I don’t think I have been underestimating excess profits leading to inflation.
Excess profits are a function of the prices the companies choose. [/I]
We don’t have to live in a system where we are beholden to the companies and the fed for the value of our money. There are other systems besides corporate welfare capitalism that can net the citizen a higher median amount of wealth.
Ok so put a number on it ?
I mean I’m not arguing that
Inflation is an important part of keeping our economy afloat.
If you don’t think evil rich people run America, man do I have some things to show you
My AZ is example is strictly to show you guys that companies are not forced to raise prices when money supply increases, contrary to what the majority of the thread argued.
You're confusing micro economic with macro concepts. You're basically claiming to have shown that we can increase the length and width of a rectangle without increasing its area. Those macro formulas are in equilibrium:
MV = PQ
In this equation:
M stands for money.
V stands for the velocity of money (or the rate at which people spend money).
P stands for the general price level.
Q stands for the quantity of goods and services produced.
So if the government gives consumers money to spend and we're at full employment and capacity, either the velocity of money will decrease or the general price level will increase or some combo of the two to restore the equilibrium. The way the terms are defined that can't not be the case.
I don’t believe we were discussing general price level
We don’t have to live in a system where we are beholden to the companies and the fed for the value of our money. There are other systems besides corporate welfare capitalism that can net the citizen a higher median amount of wealth.
Then why don't you lead with that theory for a discussion instead using one particular product from a company in the attempts to make a case for how the entire system works at large - especially when those reasonings were done in an attempt to help their own business and make more money.
What ideas do you have?
Discussing specific changes in a single product and how it exhibits inflation is not the same as discussing equilibrium changes and general price levels.
Sometimes I really can’t be certain if you guys believe the things you type or if you people are trolling
@forumula From a practical perspective I can’t have discussions with people who lack the basic understand of basic finance terms, and then these people incorrectly argue the opposite side.
Can you wrote out the equation to show how inflation is measured on a single product?
