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I was listening to NPR in the car today and they were talking about inflation. They always talk about inflation now. But it confuses me because isn’t inflation

I was listening to NPR in the car today and they were talking about inflation. They always talk about inflation now. But it confuses me because isn’t inflation supposed to be the increase of price of everything due to something other than practical, on-the-ground market problems? Things cost more right now because of supply chain problems, low interest and high demand. When lumber became super expensive, that wasn’t inflation. If it was inflation, how could you explain that resin-based wood was more expensive than natural wood? You can’t, because the resin plants were hit hard by covid. I think NPR insists on the inflation thing because they are liberals and recognizing the real cause of these high prices would mean admitting that the lockdowns were way more dangerous economically than they thought and that people against lockdowns actually had a point if a morbid one.

mc32 5y ago
I think people need to drop politics and try to talk reality on the ground. Don’t sell narratives, instead report what is experienced by the majority of the population, not some insulated pocket. They are not the gov so they should be free to talk the pros and the cons of lockdowns and continually discuss them if on the ground realities shift. They are also not the fed and should be able to talk openly about what people are experiencing (inflation). It’s silly to claim it’s transitory when the policies being used are by their nature inflationary. I hope the news has learnt their lesson, but that’s doubtful.
BirdieNZ 5y ago
> it confuses me because isn’t inflation supposed to be the increase of price of everything due to something other than practical, on-the-ground market problems? No, inflation can be caused by practical, on-the-ground market problems too. > Inflation is the term used to describe a rise of average prices through the economy. It means that money is losing its value. > The underlying cause is usually that too much money is available to purchase too few goods and services, or that demand in the economy is outpacing supply. In general, this situation occurs when an economy is so buoyant that there are widespread shortages of labour and materials. People can charge higher prices for the same goods or services. > Inflation can also be caused by a rise in the prices of imported commodities, such as oil. However, this sort of inflation is usually transient, and less crucial than the structural inflation caused by an over-supply of money.
dragonwriter 5y ago
> But it confuses me because isn’t inflation supposed to be the increase of price of everything due to something other than practical, on-the-ground market problems? No, inflation (without qualifiers) is the increase in the price of final (consumer) goods. (Not “everything”, and irrespective of cause.)

mc32 5y ago

I think people need to drop politics and try to talk reality on the ground. Don’t sell narratives, instead report what is experienced by the majority of the population, not some insulated pocket. They are not the gov so they should be free to talk the pros and the cons of lockdowns and continually discuss them if on the ground realities shift. They are also not the fed and should be able to talk openly about what people are experiencing (inflation). It’s silly to claim it’s transitory when the policies being used are by their nature inflationary. I hope the news has learnt their lesson, but that’s doubtful.

BirdieNZ 5y ago

> it confuses me because isn’t inflation supposed to be the increase of price of everything due to something other than practical, on-the-ground market problems? No, inflation can be caused by practical, on-the-ground market problems too. > Inflation is the term used to describe a rise of average prices through the economy. It means that money is losing its value. > The underlying cause is usually that too much money is available to purchase too few goods and services, or that demand in the economy is outpacing supply. In general, this situation occurs when an economy is so buoyant that there are widespread shortages of labour and materials. People can charge higher prices for the same goods or services. > Inflation can also be caused by a rise in the prices of imported commodities, such as oil. However, this sort of inflation is usually transient, and less crucial than the structural inflation caused by an over-supply of money.

dragonwriter 5y ago

> But it confuses me because isn’t inflation supposed to be the increase of price of everything due to something other than practical, on-the-ground market problems? No, inflation (without qualifiers) is the increase in the price of final (consumer) goods. (Not “everything”, and irrespective of cause.)