5 ms·
The argument is that there is no inflation if people can't afford stuff, because they'll just be priced out and forced to not buy stuff anymore, thus their expe
by angelzen 5y ago
The argument is that there is no inflation if people can't afford stuff, because they'll just be priced out and forced to not buy stuff anymore, thus their expenses will be stable. Duh. Inflation is not how much money people spend, inflation is ever increasing prices leading to people affording less and less stuff with their rapidly depreciating money.
- imtringued 5y agoIf inflation happens and food becomes more expensive and you keep buying the same food you have less money left over for non food products. The CPI will adjust and weight your food expenses more which will raise the CPI much faster than if it also looked at fitness equipment that went down in price because you didn't buy it because food was too expensive. If food gets more expensive and people don't spend more on food then inflation didn't happen by definition. They still spend the exact same amount after all, they just got different food instead.
- jtc331 5y agoBy that definition inflation basically never happens until people get higher wages so they have more to spend. That’s clearly absurd, and so defining inflation in a way that means it never happens when people substitute goods is also clearly absurd.
- angelzen 5y agoThat is exactly how the ruling class sees the situation. Gallon of milk $10? Chump change, maybe once it hits $100 it will make for a bit of faux concern table chatter at our $10k/seat fundraising dinner next week. The plebes agitating for $15/hour? Catastrophe.