What Is Inflation? Inflation is a gradual loss of purchasing power, reflected in a broad rise in prices for goods and services over time. The inflation rate is calculated as the average price increase of a basket of selected goods and services over one year. High inflation means that prices are increasing quickly, with low inflation meaning that prices are increasing more slowly. Inflation can be contrasted with deflation, which occurs when prices decline and purchasing power increases. KEY TAKEAWAYS Inflation measures how quickly the prices of goods and services are rising. Inflation is sometimes classified into three types: demand-pull inflation, cost-push inflation, and built-in inflation. The most commonly used inflation indexes are the Consumer Price Index and the Wholesale Price Index. Inflation can be viewed positively or negatively depending on the individual viewpoint and rate of change. Those with tangible assets, like property or stocked commodities, may like to see some inflation as that raises the value of their assets. https://www.investopedia.com/terms/i/inflation.asp I see videos like this: Which IMO appear to be overly simplistic propaganda A bit more accurate However the primary issue with these explaination is that the over reliance on government The issue is that corporations/business not keeping wages in step with Inflation Inflation maybe real but it becomes more a scapegoat for Corporate Greed While Material Cost may rise 10% . .. . but the Corporation takes the opportunity to increase Profits by 50% and blame inflation Rocket River
Inflation is real and there will always be some level of inflation in a growing economy. As more wealth is generated from productivity there will natural be a rise in prices. As others have noted inflation is a problem when prices rise beyond purchasing power based on productivity. That can be caused by government printing more money or there can be external factors such a sudden scarcity for something like food or fuel.
How can companies not Be Greedy if consumers are buying at the higher prices? I consider $100 insulin needles price gouging, but paying double for your Cheerios or night out at Chilis is not. Is it Inflation or Price Gouging when you paid double for the generic O shaped cereal? A lot of excuses being thrown around, when ultimately it's about having a job and getting paid enough to pay off the bare minimum of your CC bill while footing ridiculously high mortgage, prop tax and insurance costs. Less people with jerbs, less uhh...inflation.
Inflation has to do with the money supply. Supply and demand fluctuations is just a market condition. If a products supply drops and the price 10x, you don't say it was a 1000% inflationary then a month later supply returns, say you had a 90% deflation.
I roll my eyes every time I hear this. Corporate greed is literally how capitalism works. They are always greedy, by design; it is some inefficiency in the market that causes them to be able to charge more.
Or it's by some outside manipulator... I posted about this in another thread. Just an observation and a theory... Copy it here below: COVID-related supply-side and labor shocks provided a real-life experiment on consumer pricing that wouldn't have occurred in a competitive, anti-monopoly economy. Case 1: These shocks led to widespread price increases, leaving consumers with little choice but to continue paying. Will corporations lower prices once the shocks subside? Mostly, the answer is no. Eventually, someone might aim to gain market share by starting a price war, but for now, corporations are enjoying higher profits and see no need to reduce prices. Case 2: The shocks caused significant price hikes for used and traditionally lower-priced cars. How did consumers respond? They shifted toward even more expensive premium cars, where profit margins are highest. In turn, car manufacturers increased production of high-margin premium cars and reduced production of cheaper models. This makes complete business sense. So, when will manufacturers ramp up production of cheaper cars? So far, it’s happening very slowly as they continue to prioritize more expensive models. Eventually, when supply and labor are plentiful, someone will likely pursue market share with lower-priced cars, but it’s not happening yet. Nature is quite effective at completely bend and alter market forces.
It's the difference between having enough to eat .. . and eating until you are stuffed then taking someone else's, more than you can ever eat and hoarding it If it cost you 5$ to make . .charging 10$ for the product and .Making a billion dollars a year . . .is not enough You have to raise the price to 100 and make 10 billion a year. . . .. . and the next year try to make 11 billion and if the world has to burn for you to get more and more. . . .that is GREED Rocket River
This is not accurate. Let's consider an obvious example: despite an increase in the money supply, TV prices have consistently decreased over this so-called 'inflationary' period.
You can't just charge what you want and make more money. When you increase prices, customers might choose to not buy, or else a competitor will undercut you and take market share. We had some volatility that made the market inefficient and companies got some profits but its self-correcting. The same greed that makes companies raise prices to take profits also causes them to cut prices to earn customers. Greed is not a bug, its a feature.
Let's acknowledge that premise. We can work to eliminate inefficiencies introduced by government policies within our control. However, there remain inefficiencies beyond our control, such as COVID-related supply-side and labor shocks. If our concern is inflation, then we should consider targeted short-term interventions during periods of uncontrollable inefficiencies. In other words, we should assess market conditions to determine if price hikes are fair and whether temporary caps (or forced reductions once things stabilize) are warranted. We already employ such measures during emergencies like hurricanes disrupting supplies / increasing demand. Similarly, we might need broader interventions for temporary disruptions on a national or even global scale.
Just as a example. This type of consolidation has happened everywhere When a Cabal dominates the market . . .they set the prices nothing to do with Supply and Demand Rocket River
What conspiracies are these 11 companies with hundreds of executives hiding? That they are responsible for western obesity?
Except that for things like fuel and food supply and demand fluctuations are called inflation. For example the price of gas isn’t just a matter of monetary supply but many factors. The price at the pump is frequently cited as inflation. Same thing with housing prices
All this talk about prices you pay at the store or pump wouldn't be as bad if people had houses or could pay them off with ease. We're turning into a renter society during said Booming Economy, but that hasn't really registered in the general conversation. Housing remained as the primary driver of American families, which is sad considering how juiced the stock market is right now, I guess it would be talked more on broadcast if it were easy to blame Trump for it... Yeah, many companies bent over backwards during the lockdown to not look like they were profiting off a disaster... which led to the Great Grift of PPP where est. 80 billion was lost due to fraud. (broke Ferntits still got fed). The reopenings and public thirst for services and travel was an opportunity to restock the piggybanks, no doubt. It's just the sticker shock from Transitory inflation made everyone forget corporate struggles the year before.
