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Hope you don't mind me re-posting this from another comment of mine, but since you specifically raise the UK it's actually more relevant here. In the UK it does

by simonh 4y ago

Hope you don't mind me re-posting this from another comment of mine, but since you specifically raise the UK it's actually more relevant here. In the UK it doesn't look like gouging is the issue: https://www.grocerygazette.co.uk/2023/01/31/food-companies-profit-warnings/ https://www.grocerygazette.co.uk/2023/01/31/food-companies-p... Honestly you're right that inflation can benefit the well off, but I don't buy the conspiracy theory angle. "The Establishment" has been holding inflation rates at historically unprecedented lows for the last generation. It's been the number 1 priority for central banks since the early 90s. The last time the UK inflation rate was above 4% was over 20 years ago. https://www.macrotrends.net/countries/GBR/united-kingdom/inflation-rate-cpi https://www.macrotrends.net/countries/GBR/united-kingdom/inf...

wahnfrieden 4y ago
Why doesn’t 4% count as weaponized? That’s higher than typical annual raises, not to mention non workers
- justsocrateasin 4y ago
  IIRC deflation and inflation are equally as bad. If 'inflation' rates are negative, the economy grinds to a halt. Having an inflation rate of ~2% is widely considered to be beneficially for everyone, since it's in a 'goldilocks' zone, it creates stability. Inflation of 4% sure isn't as good as 2%, but generally speaking the inflation rate in the UK appears to hover around 2-3% during "stable" periods. https://www.macrotrends.net/countries/GBR/united-kingdom/inflation-rate-cpi https://www.macrotrends.net/countries/GBR/united-kingdom/inf...
  - Mizoguchi 4y ago
    With lack of fundamentals in economics this is very counterintuitive. Japan is a good example of the negative consequences of zero or negative inflation. https://asia.nikkei.com/Economy/After-20-years-Japan-still-stuck-in-deflationary-mindset-Kuroda2 https://asia.nikkei.com/Economy/After-20-years-Japan-still-s...
  - TheOtherHobbes 4y ago
    Curious that there's been so little financial stability in this supposedly stabilised ideal system.
    - prewett 4y ago
      Stability is a feature of industrial processes. Natural processes are all over the place. Also, there are external shocks that you can't control (e.g. oil producers raising prices in the 70s, Russia invading Ukraine, etc.). Compare pre and post 1945. The 1800s had a depression every banking cycle, now we just get recessions. Bank failures no longer take down your life savings. The king of England doesn't sometimes surreptitiously start putting copper in the gold coins to fund wars any more (e.g. inflation). GP's chart is pretty impressive, actually. Aside from the 70s oil shock, inflation is pretty constant, especially in the last couple decades.
- simonh 4y ago
  It’s not been 4%, it’s been below that. Mostly less than half that actually. And I was wrong, it’s been that way for over 30 years, not 20.
- bandrami 4y ago
  But then again inflation benefits people with debt. 4% annual inflation means their real debt load is 3.8% lower. Low inflation is basically a subsidy to creditors.
Jimmc414 4y ago
>It's (inflation) been the number 1 priority for central banks since the early 90s. I might believe this if M2 hadn't increased 4x since 2000 https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL
- sofixa 4y ago
  What has that have to do with inflation in the UK?
  - jlmorton 4y ago
    So you're saying just because this is an entirely different economy, country, currency, money supply growth rate, central bank and interest rate regimen, that this means the elites aren't conspiring to do the thing they hate more than anything else, the thing that causes them to intentionally decrease jobs and employment to prevent?
  - ptero 4y ago
    Most developed countries have a similar picture. This is a UK-specific chart. https://tradingeconomics.com/united-kingdom/money-supply-m2 https://tradingeconomics.com/united-kingdom/money-supply-m2
    - mjfisher 4y ago
      That chart shows a net increase in M2 of about 5% for the UK, rather than multiples - the Y axis doesn't start at zero, which might be misleading at first glance.
      - ptero 4y ago
        I may be missing something, but the page I posted has very similar numbers to those referenced for the StLouis Fed. You have to click on "25 years" to have a comparison with year 2000. The post you replied to referenced the St. Louis Fed chart saying 4x M2 growth from 2000 to now. The page I referenced shows the same 4x M2 growth for the UK: from 750k at 2000 to 3000k at 2023 (values in GBP Millions). Virtually identical.

by simonh 4y ago

wahnfrieden 4y ago

Why doesn’t 4% count as weaponized? That’s higher than typical annual raises, not to mention non workers

justsocrateasin 4y ago
IIRC deflation and inflation are equally as bad. If 'inflation' rates are negative, the economy grinds to a halt. Having an inflation rate of ~2% is widely considered to be beneficially for everyone, since it's in a 'goldilocks' zone, it creates stability. Inflation of 4% sure isn't as good as 2%, but generally speaking the inflation rate in the UK appears to hover around 2-3% during "stable" periods. https://www.macrotrends.net/countries/GBR/united-kingdom/inflation-rate-cpi https://www.macrotrends.net/countries/GBR/united-kingdom/inf...
- Mizoguchi 4y ago
  With lack of fundamentals in economics this is very counterintuitive. Japan is a good example of the negative consequences of zero or negative inflation. https://asia.nikkei.com/Economy/After-20-years-Japan-still-stuck-in-deflationary-mindset-Kuroda2 https://asia.nikkei.com/Economy/After-20-years-Japan-still-s...
- TheOtherHobbes 4y ago
  Curious that there's been so little financial stability in this supposedly stabilised ideal system.
  - prewett 4y ago
    Stability is a feature of industrial processes. Natural processes are all over the place. Also, there are external shocks that you can't control (e.g. oil producers raising prices in the 70s, Russia invading Ukraine, etc.). Compare pre and post 1945. The 1800s had a depression every banking cycle, now we just get recessions. Bank failures no longer take down your life savings. The king of England doesn't sometimes surreptitiously start putting copper in the gold coins to fund wars any more (e.g. inflation). GP's chart is pretty impressive, actually. Aside from the 70s oil shock, inflation is pretty constant, especially in the last couple decades.
simonh 4y ago
It’s not been 4%, it’s been below that. Mostly less than half that actually. And I was wrong, it’s been that way for over 30 years, not 20.
bandrami 4y ago
But then again inflation benefits people with debt. 4% annual inflation means their real debt load is 3.8% lower. Low inflation is basically a subsidy to creditors.

Jimmc414 4y ago

>It's (inflation) been the number 1 priority for central banks since the early 90s. I might believe this if M2 hadn't increased 4x since 2000 https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL

sofixa 4y ago
What has that have to do with inflation in the UK?
- jlmorton 4y ago
  So you're saying just because this is an entirely different economy, country, currency, money supply growth rate, central bank and interest rate regimen, that this means the elites aren't conspiring to do the thing they hate more than anything else, the thing that causes them to intentionally decrease jobs and employment to prevent?
- ptero 4y ago
  Most developed countries have a similar picture. This is a UK-specific chart. https://tradingeconomics.com/united-kingdom/money-supply-m2 https://tradingeconomics.com/united-kingdom/money-supply-m2
  - mjfisher 4y ago
    That chart shows a net increase in M2 of about 5% for the UK, rather than multiples - the Y axis doesn't start at zero, which might be misleading at first glance.
    - ptero 4y ago
      I may be missing something, but the page I posted has very similar numbers to those referenced for the StLouis Fed. You have to click on "25 years" to have a comparison with year 2000. The post you replied to referenced the St. Louis Fed chart saying 4x M2 growth from 2000 to now. The page I referenced shows the same 4x M2 growth for the UK: from 750k at 2000 to 3000k at 2023 (values in GBP Millions). Virtually identical.