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"Exactly. Afaik the entire point of inflation modern monetary strategy is to force people to take the money out of their mattresses and participate in the econo

"Exactly. Afaik the entire point of inflation modern monetary strategy is to force people to take the money out of their mattresses and participate in the economy." Some inflation is required, I completely agree with that. But the inflation being pushed on the population is unreasonable and equates to stealing imo. Especially given the lack of wage increases over the last 50 years or so for 90+% of people. Yes, CPI numbers are probably 1-3% depending on where you live. But CPI is bs. It purposely leaves out things like healthcare, schooling, housing etc. Real inflation rates is probably closer to 5-8% depending on where you live. That's just unreasonable, and is a result of governments not wanting to put in the hard work to fix real problems. So they take the easy, but worse route, and inflate.

PragmaticPulp 6y ago
> But the inflation being pushed on the population I agree that inflation is too high, but the role of fiscal policy isn’t as singular or simplified as it has been portrayed. At the end of the day, only one thing drives prices: Supply and demand. Home prices are going up because people are pouring more money into the housing market, and because low interest rates make that money go farther. Think of it this way: How are home prices inflating (adjusted for interest rates, even) if people’s wages are simultaneously going down? One of the biggest misunderstandings of financial stimulus is this idea that the average or lower class person will somehow suffer. That would be true if stimulus went straight to companies (as some of it did) but more recent proposals are at least focused on individuals.
scotta33 6y ago
CPI includes all of those things. Can argue with the measurement and the composition of the basket, but real inflation isn't much higher than CPI. Asset price inflation on the other hand....

PragmaticPulp 6y ago

> But the inflation being pushed on the population I agree that inflation is too high, but the role of fiscal policy isn’t as singular or simplified as it has been portrayed. At the end of the day, only one thing drives prices: Supply and demand. Home prices are going up because people are pouring more money into the housing market, and because low interest rates make that money go farther. Think of it this way: How are home prices inflating (adjusted for interest rates, even) if people’s wages are simultaneously going down? One of the biggest misunderstandings of financial stimulus is this idea that the average or lower class person will somehow suffer. That would be true if stimulus went straight to companies (as some of it did) but more recent proposals are at least focused on individuals.

scotta33 6y ago

CPI includes all of those things. Can argue with the measurement and the composition of the basket, but real inflation isn't much higher than CPI. Asset price inflation on the other hand....