Are You Concerned About Inflation?

by Simon 30 Replies latest social current

  • hoser
    hoser

    Modern monetary theory says that printing money doesn’t create inflation, scarcity of goods and services does. That is why new fiat currency into the economy has to be tied to the gdp somehow.

    That is why guaranteed income is Bad. The economy can’t give currency to people for producing nothing. This will create shortages and prices will skyrocket

    We have really only seen inflation since getting off the gold standard even though I don’t believe in it. I’m a believer in a well managed fiat economy with equitable lending policies as it gives poor people a chance to climb the ladder. Reasonable, managed inflation is good for the economy IMO.

  • GrreatTeacher
    GrreatTeacher

    Econ 101 still says that printing money does create inflation.

    But, I concede your point that scarcity of goods and services does as well.

    You can see that right now in the housing market. Everybody wants to buy but there is not enough supply. Therefore potential buyers run up the price in competition with each other.

    You can't find a house to buy in my neighborhood, but when one comes on the market, you'll pay $400,000 for what was $350,000 last year. And it's easier for people to afford the extra cost because interest rates are so low.

  • road to nowhere
    road to nowhere

    Building materials, gasoline, electricity, gas.

    Things like toilet paper we used to buy on sale never are now.

  • hoser
    hoser

    Prices are up on everything because of excess currency and there are a lot of supply chain issues right now with covid.

  • shadowclone
    shadowclone

    No, because we'll all be dead soon

  • pistolpete
    pistolpete

    Instead of taking my taxes why don't they just print the equivalent instead?

    Because giving it away to the low life promises VOTES IN THE FUTURE.

  • Disillusioned JW
    Disillusioned JW

    It has been a great many years since I have seen high inflation in the USA. Furthermore, the USA's Federal Reserve Chairperson said recently that the federal government's efforts to stimulate the economy is unlikely to increase the inflation rate to above 2.5% (or so). Further, the previous Federal Reserve Chairperson said that competition by businesses with each other online (combined with consumers shopping for the best deals online) and with foreign businesses (including those in China) is keeping inflation rates low in the USA, despite low rates of employment (that comment was made before Covid-19 and the dramatic reduction in business activity which resulted in high unemployment rates later). As a result, I think that inflation rates will not become high in the USA within the next few years and thus I am not concerned about inflation.

  • road to nowhere
    road to nowhere

    Disillusioned

    Except we are seeing higher prices on goods. The online market is dominated by Amazon and perhaps Ebay. I know how much my home heat has gone up, largely by design for " carbon emissions". The same for rent, insurance, food; all things we need.

    The disruption of delivery adds in too. The food market is regularly low stocked or depleted.

  • Disillusioned JW
    Disillusioned JW
    Where I live food is very plentiful (and in great variety) in the grocery stores.

    Fred Meyer's and Safeway are competing with Amazon by offering digital coupons to shoppers to download coupons from the online stores of Kroger (including Fred Meyer's) and Safeway. Other than for rent on my apartment and on food at fast food restaurants I don't notice price increases much. Part of that is because for several years now I don't do much shopping since I now have essentially all of the material things (such as electronics and furniture) I want. It is also because I am very thrifty and that I buy nearly all of my electronics and books used from deep discount thrift stores. It is also because most of the food I get is given to me for free by certain charitable organizations (who in turn received it as free from grocery stores due the stores donating their surplus that didn't sell).

    Regarding my rent, it has not risen for over a year because my landlord has decided to delay raising the rent at my apartment building due the hard times many people are having financially due to Covid-19's impacts on employment.

    Because of the climate in my area, because of where my apartment unit is located within my apartment building, and because if needed I bundle up while at home, during 10+ months of each year I keep my heaters (which are electric) turned off (except sometimes briefly the one in the bathroom). My electric bill (and I purchase 100% renewable electricity) has not increased much (in terms of dollars/month) over the years - my electric bill is only about $45/month.

  • waton
    waton

    Giving that much money away to people without return in services is bound to increase the money supply. Inflation has hit big here people are offering > 100 000$ over asking price to just be able to buy a house.

    Building materials too are up 50%.

    The current governments are buying votes by their giveaways, daring the opposition to challenge them and leave them the responsibility to make the taxpayer pay for the largesse.

    The savers (like me) will be punished big time.

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