5 ms·

Inflation is always permanent.

by AlanSE 4y ago

qclibre22 4y ago
U.S. has had periods of deflation: https://www.usinflationcalculator.com/inflation/historical-inflation-rates/ https://www.usinflationcalculator.com/inflation/historical-i... . As recently as 2009.
- mandmandam 4y ago
  Down 0.4 - after a 3.8% rise the year previous. Not exactly the strongest counterexample I've ever seen, though (barely) technically correct. And the last deflationary "period" (a single year) before that was ... drumroll... 1949, following 3 years of >8% inflation.
  - amalgamated_inc 4y ago
    It's called the ratchet effect. The government doesn't like giving your money back. That's why taxes almost never go down, either - e.g. the "temporary" income tax that only affects the richest 1% of people..
    - qclibre22 4y ago
      Federal Receipts as Percent of Gross Domestic Product : https://fred.stlouisfed.org/series/FYFRGDA188S https://fred.stlouisfed.org/series/FYFRGDA188S
      - amalgamated_inc 4y ago
        Yes. Share ~ steady, but GDP growing - tax income growing.
    - grumple 4y ago
      Taxes have been going down consistently for 50 years in the US.
      - amalgamated_inc 4y ago
        what
        grumple 4y ago
        Both the marginal [0] and effective [1] tax rates have been trending downwards since WW2 with relatively little deviation from that. Pus this doesn't take into account all the ways wealthy people can avoid creating taxable income in the first place that generally aren't possible at lower income levels. 0. https://taxfoundation.org/historical-income-tax-rates-brackets/ https://taxfoundation.org/historical-income-tax-rates-bracke... 1. https://www.taxpolicycenter.org/taxvox/effective-income-tax-rates-have-fallen-top-one-percent-world-war-ii-0 https://www.taxpolicycenter.org/taxvox/effective-income-tax-...
        amalgamated_inc 4y ago
        "For the top 1%" On average, aka the vast majority of tax revenue, it's stayed constant according to your own source.
    - idontpost 4y ago
      [dead]
ChuckNorris89 4y ago
Means I'm gonna have to interview prep hard next year to jump ship to a better paying company if I can and if the market allows for it, as my current one isn't in a hurry to do any salary adjustments and it hurts. Food, electricity, heating, all went up from minimum 30% to nearly doubled. Luckily my rent and doctor's bills went up only 10% so thank God about that.
- rhacker 4y ago
  I'm in the process right now of changing jobs for the same reason. The company has been losing employees left and right because of this.
thrashh 4y ago
There’s a difference between inflation and a price hike within one industry Of course inflation is permanent. The mechanics of money would break down otherwise. When money can deflate, money becomes an investment vehicle like crypto did and we know how bad that is. When there is a threat of inflation, it forces people to transfer money instead of hoarding it. That is the entire purpose of money. Now, about the price hike… is it permanent? Probably not when there are 160,000 competing poultry farms.
- NineStarPoint 4y ago
  Not just the competition between poultry farms either, but competition with any other protein a person can eat. The closer eggs gets in price per calorie to meat (or nuts, cheese, etc), the less people are likely to choose eggs. There’s plenty of food out there, and a large part of the historic popularity of eggs has been their cheap price.
hooverd 4y ago
Tell that to my bike tires.
HDThoreaun 4y ago
Not for commodities. Their prices fluctuate like wild.
mym1990 4y ago
'always permanent' seems redundant. Japan certainly has not had permanent inflation. Starting in the mid-1980 up until recently it has wavered quite a bit.

Inflation is always permanent.

by AlanSE 4y ago

Inflation is always permanent.

U.S. has had periods of deflation: https://www.usinflationcalculator.com/inflation/historical-inflation-rates/ https://www.usinflationcalculator.com/inflation/historical-i... . As recently as 2009.

mandmandam 4y ago
Down 0.4 - after a 3.8% rise the year previous. Not exactly the strongest counterexample I've ever seen, though (barely) technically correct. And the last deflationary "period" (a single year) before that was ... drumroll... 1949, following 3 years of >8% inflation.
- amalgamated_inc 4y ago
  It's called the ratchet effect. The government doesn't like giving your money back. That's why taxes almost never go down, either - e.g. the "temporary" income tax that only affects the richest 1% of people..
  - qclibre22 4y ago
    Federal Receipts as Percent of Gross Domestic Product : https://fred.stlouisfed.org/series/FYFRGDA188S https://fred.stlouisfed.org/series/FYFRGDA188S
    - amalgamated_inc 4y ago
      Yes. Share ~ steady, but GDP growing - tax income growing.
  - grumple 4y ago
    Taxes have been going down consistently for 50 years in the US.
    - amalgamated_inc 4y ago
      what
      - grumple 4y ago
        Both the marginal [0] and effective [1] tax rates have been trending downwards since WW2 with relatively little deviation from that. Pus this doesn't take into account all the ways wealthy people can avoid creating taxable income in the first place that generally aren't possible at lower income levels. 0. https://taxfoundation.org/historical-income-tax-rates-brackets/ https://taxfoundation.org/historical-income-tax-rates-bracke... 1. https://www.taxpolicycenter.org/taxvox/effective-income-tax-rates-have-fallen-top-one-percent-world-war-ii-0 https://www.taxpolicycenter.org/taxvox/effective-income-tax-...
        amalgamated_inc 4y ago
        "For the top 1%" On average, aka the vast majority of tax revenue, it's stayed constant according to your own source.
  - idontpost 4y ago
    [dead]

ChuckNorris89 4y ago

Means I'm gonna have to interview prep hard next year to jump ship to a better paying company if I can and if the market allows for it, as my current one isn't in a hurry to do any salary adjustments and it hurts. Food, electricity, heating, all went up from minimum 30% to nearly doubled. Luckily my rent and doctor's bills went up only 10% so thank God about that.

rhacker 4y ago
I'm in the process right now of changing jobs for the same reason. The company has been losing employees left and right because of this.

thrashh 4y ago

There’s a difference between inflation and a price hike within one industry Of course inflation is permanent. The mechanics of money would break down otherwise. When money can deflate, money becomes an investment vehicle like crypto did and we know how bad that is. When there is a threat of inflation, it forces people to transfer money instead of hoarding it. That is the entire purpose of money. Now, about the price hike… is it permanent? Probably not when there are 160,000 competing poultry farms.

NineStarPoint 4y ago
Not just the competition between poultry farms either, but competition with any other protein a person can eat. The closer eggs gets in price per calorie to meat (or nuts, cheese, etc), the less people are likely to choose eggs. There’s plenty of food out there, and a large part of the historic popularity of eggs has been their cheap price.

hooverd 4y ago

Tell that to my bike tires.

HDThoreaun 4y ago

Not for commodities. Their prices fluctuate like wild.

mym1990 4y ago

'always permanent' seems redundant. Japan certainly has not had permanent inflation. Starting in the mid-1980 up until recently it has wavered quite a bit.