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It does make for a somber website visit, when one frequents the Chapwood Index and starts contemplating about all of it including the consequences for the poore

It does make for a somber website visit, when one frequents the Chapwood Index and starts contemplating about all of it including the consequences for the poorest of the poor, who are trapped: https://www.reddit.com/r/PersonalFinanceCanada/comments/kr1kwb/chapwood_index_shows_129_inflation_for_last_5/ https://www.reddit.com/r/PersonalFinanceCanada/comments/kr1k... (the original site seems to be down at the moment)

ajmurmann 5y ago
Doesn't inflation affect wealthy people more, since any cash they have would go down in value? If it's true inflation income should go up with it.
- AnimalMuppet 5y ago
  Income goes up after it. Inflation hits, and then later your income goes up. That hurts. The closer you are to the edge, the more it hurts.
- ffdhghggg 5y ago
  Wealthy people do not own much cash. Wealthy people own assets. The poor also do not have much cash, they consume goods to live. Inflation increases the value of assets relative to consumption. Inflation increases the gap between the wealthy and the poor. Deflation reduces the value of assets and makes consumption more affordable. Deflation reduces the gap between the wealthy and the poor.
throw0101a 5y ago
> Chapwood Index This is complete and utter non-sense and engaging some simple math skills shows why: > But if we take away the outlier 2020 data points, the average real annual GDP growth from 2010-2019 was 2.3%. The inflation rate in that time averaged roughly 1.8% per year. > If you’re one of the conspiracy people who believe inflation has actually been running at 5-6% per year, that would assume the economy has been contracting by 1-3% per year over the past 10 years. > And if you’re a full tinfoil hat person who assumes inflation is actually 10-12% per year[fn2], that’s like saying we’ve been in a full-blown depression and the economy has lost 80% of its value. > This is absurd and patently false but that’s the claim you’re making if you really think inflation is this high. * https://awealthofcommonsense.com/2021/01/inflation-truthers/ https://awealthofcommonsense.com/2021/01/inflation-truthers/ [fn2] is a link to the Chapwood Index. If inflation is >10% as Chapwood claims, but growth was only 2-3%, then that would mean there was >7% deflation in real terms. If we had really deflation that big the economy would be collapsing à la the Great Depression. To repeat the key line: > And if you’re a full tinfoil hat person who assumes inflation is actually 10-12% per year, that’s like saying we’ve been in a full-blown depression and the economy has lost 80% of its value.

ajmurmann 5y ago

Doesn't inflation affect wealthy people more, since any cash they have would go down in value? If it's true inflation income should go up with it.

AnimalMuppet 5y ago
Income goes up after it. Inflation hits, and then later your income goes up. That hurts. The closer you are to the edge, the more it hurts.
ffdhghggg 5y ago
Wealthy people do not own much cash. Wealthy people own assets. The poor also do not have much cash, they consume goods to live. Inflation increases the value of assets relative to consumption. Inflation increases the gap between the wealthy and the poor. Deflation reduces the value of assets and makes consumption more affordable. Deflation reduces the gap between the wealthy and the poor.

throw0101a 5y ago

> Chapwood Index This is complete and utter non-sense and engaging some simple math skills shows why: > But if we take away the outlier 2020 data points, the average real annual GDP growth from 2010-2019 was 2.3%. The inflation rate in that time averaged roughly 1.8% per year. > If you’re one of the conspiracy people who believe inflation has actually been running at 5-6% per year, that would assume the economy has been contracting by 1-3% per year over the past 10 years. > And if you’re a full tinfoil hat person who assumes inflation is actually 10-12% per year[fn2], that’s like saying we’ve been in a full-blown depression and the economy has lost 80% of its value. > This is absurd and patently false but that’s the claim you’re making if you really think inflation is this high. * https://awealthofcommonsense.com/2021/01/inflation-truthers/ https://awealthofcommonsense.com/2021/01/inflation-truthers/ [fn2] is a link to the Chapwood Index. If inflation is >10% as Chapwood claims, but growth was only 2-3%, then that would mean there was >7% deflation in real terms. If we had really deflation that big the economy would be collapsing à la the Great Depression. To repeat the key line: > And if you’re a full tinfoil hat person who assumes inflation is actually 10-12% per year, that’s like saying we’ve been in a full-blown depression and the economy has lost 80% of its value.