Jump to content

Archived

This topic is now archived and is closed to further replies.

bornontheblue

Inflation

Recommended Posts

38 minutes ago, Maji said:

We don't really know that yet.

If I had a dollar for each time a fiscal conservative (or libertarian) falsely predicted hyperinflation, I'd be rich

Yeah...but it would be worth less...

In the beginning the Universe was created.
This has made a lot of people very angry and been widely regarded as a bad move.

Link to comment
Share on other sites

38 minutes ago, CPslograd said:

If you don't think there is hyperinflation in construction right now you are an idiot.

Inflation is a increase in general price levels across the whole economy.   Isolated price increases in certain products is not inflation.   That is how a market economy works.   High prices for ps5s is not because of inflation...it is called supply and demand. 

Posted Image
Link to comment
Share on other sites

9 minutes ago, Akkula said:

Inflation is a increase in general price levels across the whole economy. Isolated price increases in certain products is not inflation.   

Yeah, increases for an individual product (or even entire sector) doesn't = inflation. The pro-market folks should know this.

Link to comment
Share on other sites

6 minutes ago, Maji said:

Bingo.

And inflation isn't a bad thing, especially if you owe money.   Student loan holders could get a nice relief package with some inflation.   How do you think the boomers "paid their way through college."  Time for the great generational payback.:thumbsup:

Posted Image
Link to comment
Share on other sites

26 minutes ago, Akkula said:

And inflation isn't a bad thing

>3 percent, you're saying? Your comment seemingly implies that inflation is beneficial for the poor. Am I reading into that correctly? If so, wouldn't it partially depend on whether the inflation was expected or unexpected?

Link to comment
Share on other sites

2 hours ago, Maji said:

That's not how this works. There's a reason CPI doesn't only track construction.

Get back to me when there's worrisome levels of sustained inflation. Perhaps it happens. As of now, it's too early to say that will happen

It’s way too early , but alarm bells are going off that haven’t gone off in 40 years. The era of cheap money could be coming to an end. 

Link to comment
Share on other sites

1 hour ago, bornontheblue said:

It’s way too early , but alarm bells are going off that haven’t gone off in 40 years. The era of cheap money could be coming to an end. 

Expecting a return to the 70s is absurdly premature

Link to comment
Share on other sites

41 minutes ago, Maji said:

Expecting a return to the 70s is absurdly premature

Look , I said it was early , but you have to admit warning lights are going off that haven’t been lit up since my parents were young. 

Link to comment
Share on other sites

1 hour ago, Maji said:

Expecting a return to the 70s is absurdly premature

 

That is literally what he said lol in his first sentence.

Personally, not too concerned yet.  Need to find out what costs are due to supply chain issues, which will be significant, and what happens as we return to the new normal around the world.

 

Link to comment
Share on other sites

5 hours ago, Akkula said:

Inflation is a increase in general price levels across the whole economy.   Isolated price increases in certain products is not inflation.   That is how a market economy works.   High prices for ps5s is not because of

inflation...it is called supply and demand. 

You and your costa rican adopted kid Maji know that the government policy causing this goes way beyond Biden, right?  There is no reason to reflexively defend it, it makes you look stupid.

The inflation in construction costs, is largely due to reductions in manufacturing capacity, and to the larger issue of labor shortages.  A lot of this is due to labor shortages caused by the juiced unemployment benefits.  If you can't acknowledge that, then it is a waste of time to discuss the matter with you because you are being willfully ignorant.

In addition to constricting the supply of labor, we are juicing demand with easy monetary policy and massive fiscal stimulus.  There is no other possible way this ends other than rising prices.

It isn't just construction inflation, (which in and of itself is a massive segment). it is manufacturing in general.  And now that demand is returning in other segments like tourism. you will see even more competition for labor.  Which will lead to rising prices in other segments.

So the last sentence in your absurd post is actually correct.  It is supply and demand.  I'm hoping you remember from Econ 101 that if you constrict supply, and juice demand through monetary and fiscal policy....

What happens to prices?

 

Link to comment
Share on other sites

5 hours ago, Akkula said:

And inflation isn't a bad thing, especially if you owe money.   Student loan holders could get a nice relief package with some inflation.   How do you think the boomers "paid their way through college."  Time for the great generational payback.:thumbsup:

Inflation phucks wage earners and fixed income seniors.  It doesn't phuck me.  Because I'm leveraged with my rentals.

And goddammit with this college loan forgiveness bullshit.  So the guy or girl, who got a blue collar job to either make a career out of it, or pay his way through college.  You want his tax dollars to pay for the dumbshit who screwed around for 6 years at college on student loans, and never figured out how to use that degree to get a job to pay that back?

What you are talking about is regressive as hell.  It's a wealth transfer from working class people to in many cases people making six figures.  Why should a plumber's taxes be paying for a lawyers student loans?

Link to comment
Share on other sites

5 minutes ago, CPslograd said:

You and your costa rican adopted kid Maji know that the government policy causing this goes way beyond Biden, right?  There is no reason to reflexively defend it, it makes you look stupid.

The inflation in construction costs, is largely due to reductions in manufacturing capacity, and to the larger issue of labor shortages.  A lot of this is due to labor shortages caused by the juiced unemployment benefits.  If you can't acknowledge that, then it is a waste of time to discuss the matter with you because you are being willfully ignorant.

In addition to constricting the supply of labor, we are juicing demand with easy monetary policy and massive fiscal stimulus.  There is no other possible way this ends other than rising prices.

It isn't just construction inflation, (which in and of itself is a massive segment). it is manufacturing in general.  And now that demand is returning in other segments like tourism. you will see even more competition for labor.  Which will lead to rising prices in other segments.

So the last sentence in your absurd post is actually correct.  It is supply and demand.  I'm hoping you remember from Econ 101 that if you constrict supply, and juice demand through monetary and fiscal policy....

What happens to prices?

 

So, they shouldn’t have extended the extra UI benefits when they passed the last COVID relief package? 

Link to comment
Share on other sites

12 minutes ago, SalinasSpartan said:

So, they shouldn’t have extended the extra UI benefits when they passed the last COVID relief package? 

When the bill was passed, IMHO, it needed to be extended a little longer.  Not nearly as long as it was though.

 

Link to comment
Share on other sites

19 minutes ago, SalinasSpartan said:

So, they shouldn’t have extended the extra UI benefits when they passed the last COVID relief package? 

No, I think that is clearly obvious now.

Juicing UEI makes sense if there are no jobs to be had, or the government is mandating that places of business close.  That's not the case any more.

Also, I forgot to mention this, and it is almost equally as important.  Closing schools has reduced labor supply as well.

PPP has gone on too long too and is causing distortions in the market as well.

The republicans voted for a lot of this shit too, which is why I don't understand Lenin and his sidekick getting defensive about it.

Link to comment
Share on other sites

4 hours ago, CPslograd said:

Inflation phucks wage earners and fixed income seniors.  It doesn't phuck me.  Because I'm leveraged with my rentals.

And goddammit with this college loan forgiveness bullshit.  So the guy or girl, who got a blue collar job to either make a career out of it, or pay his way through college.  You want his tax dollars to pay for the dumbshit who screwed around for 6 years at college on student loans, and never figured out how to use that degree to get a job to pay that back?

What you are talking about is regressive as hell.  It's a wealth transfer from working class people to in many cases people making six figures.  Why should a plumber's taxes be paying for a lawyers student loans?

Inflation doesn't phuck wage earners nor people on social security.  The increase in wages is precisely one of the biggest causes of actual inflation.  People on social security is also indexed to inflation.  

Inflation is generally bad for savers and good for borrowers.    If you have a fixed debt of $100k and you get 6% inflation per year that debt gets cheaper and cheaper to pay off and the lender gets less in actual value returned to them.

Inflation=Bad is such a knee jerk.  Why is it bad and why should it be avoided at all costs?  Inflation can get out of control and it can mess with the economy and you don't want a situation where your paycheck loses so much value in a couple of months that you are buying up gold bricks and putting them under your mattress, for example.  

Inflation is generally a sign of full employment, the working class having bargaining power over wages, a working class that can get ahead.  The reason people are pissed right now is because there isn't an army of desperate people willing to work for $9 an hour.  The enhanced unemployment benefits have created a de facto minimum wage.  Think about it, if you have a "job" that already pays $15 an hour why are you going to quit that job to make $9...it makes no logical sense.  We need to get away from this capitalism of desperation model where you take advantage of people who cannot even meet their basic needs to get over the poverty line.  

But that also underscores why I like UBI.  If you are still making UBI you can take the $9 an hour job without them taking away your other benefit.  That $9 is just gravy on top of what you already make to get over the poverty line AND it is a generous form of welfare to the business who can hire you for less than $15 an hour.  Suddenly that $9 an hour job PLUS your UBI becomes a real ticket out of poverty and into the middle class while also helping a small business owner. 

 

Posted Image
Link to comment
Share on other sites

17 hours ago, bornontheblue said:

No. When people get paid unemployment value is only flowing one way, and that is to the recipient of it. Do the taxpayers receive any benefit in the form of goods exchanged or labor performed? No! 

Well, the Bobs benefit when the unemployed pay their rent.  

Thay Haif Said: Quhat Say Thay? Lat Thame Say

Link to comment
Share on other sites

5 hours ago, CPslograd said:

The republicans voted for a lot of this shit too, which is why I don't understand Lenin and his sidekick getting defensive about it.

"IDK why Maji doesn't accept my [unproven] premise, he can just blame the Republicans for it!"

I maintain that rising construction costs doesn't necessarily = hyperinflation. We'll see about inflation in a few months. It's too early to know after one transitory sort of month. 

Link to comment
Share on other sites

6 hours ago, CPslograd said:

You and your costa rican adopted kid Maji know that the government policy causing this goes way beyond Biden, right?  There is no reason to reflexively defend it, it makes you look stupid.

The inflation in construction costs, is largely due to reductions in manufacturing capacity, and to the larger issue of labor shortages.  A lot of this is due to labor shortages caused by the juiced unemployment benefits.  If you can't acknowledge that, then it is a waste of time to discuss the matter with you because you are being willfully ignorant.

In addition to constricting the supply of labor, we are juicing demand with easy monetary policy and massive fiscal stimulus.  There is no other possible way this ends other than rising prices.

It isn't just construction inflation, (which in and of itself is a massive segment). it is manufacturing in general.  And now that demand is returning in other segments like tourism. you will see even more competition for labor.  Which will lead to rising prices in other segments.

So the last sentence in your absurd post is actually correct.  It is supply and demand.  I'm hoping you remember from Econ 101 that if you constrict supply, and juice demand through monetary and fiscal policy....

What happens to prices?

 

I don't think it's the ei. We've been low on workers since 2009, this is just a final straw.

Remember that every argument you have with someone on MWCboard is actually the continuation of a different argument they had with someone else also on MWCboard. 

Link to comment
Share on other sites

7 hours ago, CPslograd said:

No, I think that is clearly obvious now.

Juicing UEI makes sense if there are no jobs to be had, or the government is mandating that places of business close.  That's not the case any more.

Also, I forgot to mention this, and it is almost equally as important.  Closing schools has reduced labor supply as well.

PPP has gone on too long too and is causing distortions in the market as well.

The republicans voted for a lot of this shit too, which is why I don't understand Lenin and his sidekick getting defensive about it.

So you think no extension should have been given at all? Ok, well I’m just going to have to disagree with you there.

Link to comment
Share on other sites



  • Recently Browsing   0 members

    • No registered users viewing this page.



×
×
  • Create New...