Inflation from the Fed helicoptering money around was probably the most predicted thing that’s happened in the last 50 years. It should have surprised literally no one.
It’s also no surprise that it hasn’t gone away. That’s called deflation and every central banker on the planet would rather be eviscerated with a rusty spoon than allow deflation to happen.
Except that’s not what happened, companies used the slowdowns in shipping from Covid shutdowns as an excuse to raise prices, then never lowered them. This isn’t inflation, this was intentionally planned, don’t belive me? Listen to their fucking earnings calls specifically saying it out loud.
That is an extremely simplified take of what inflation is.
Here’s a fun example as to why just saying “inflation means prices go up” doesn’t make sense, what happens when a group of companies conspire to raise prices simultaneously? Is that inflation or is that price fixing?
https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent
In your scenario that’s inflation caused by price fixing. You seem to be saying these things are mutually exclusive but I don’t understand why you would say that.
Presumably price fixing in one industry would have trouble causing general systemic inflation. But simultaneous greed and price fixing through many industries all at once? Sure, that would do it.
I suppose my point is if we put any cause of rising prices under the “inflation” umbrella, it gives people the wrong idea as to the cause. Rather then just specifying what is causing prices to rise, people just say “it’s inflation.”
Inflation is defined as the increase of prices over a set period of time. It is in itself nothing, doesn’t do anything and its singular purpose is to be able to say how much something costs today compared to yesteryear.
If the price difference depends on a supply chock (something that affects the ability to produce, like a shortage), or a demand chock (suddenly everbody rejects Tesla) is all the same, it results in a price change and can therefore be compared using the measure inflation.
Inflation from the Fed helicoptering money around was probably the most predicted thing that’s happened in the last 50 years. It should have surprised literally no one.
It’s also no surprise that it hasn’t gone away. That’s called deflation and every central banker on the planet would rather be eviscerated with a rusty spoon than allow deflation to happen.
Except that’s not what happened, companies used the slowdowns in shipping from Covid shutdowns as an excuse to raise prices, then never lowered them. This isn’t inflation, this was intentionally planned, don’t belive me? Listen to their fucking earnings calls specifically saying it out loud.
Companies deciding to raise prices (for any reason — justified or not) is what inflation is made of.
Inflation just means “prices went up.”
That is an extremely simplified take of what inflation is.
Here’s a fun example as to why just saying “inflation means prices go up” doesn’t make sense, what happens when a group of companies conspire to raise prices simultaneously? Is that inflation or is that price fixing? https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent
In your scenario that’s inflation caused by price fixing. You seem to be saying these things are mutually exclusive but I don’t understand why you would say that.
Presumably price fixing in one industry would have trouble causing general systemic inflation. But simultaneous greed and price fixing through many industries all at once? Sure, that would do it.
I suppose my point is if we put any cause of rising prices under the “inflation” umbrella, it gives people the wrong idea as to the cause. Rather then just specifying what is causing prices to rise, people just say “it’s inflation.”
Inflation is defined as the increase of prices over a set period of time. It is in itself nothing, doesn’t do anything and its singular purpose is to be able to say how much something costs today compared to yesteryear. If the price difference depends on a supply chock (something that affects the ability to produce, like a shortage), or a demand chock (suddenly everbody rejects Tesla) is all the same, it results in a price change and can therefore be compared using the measure inflation.
Fair enough