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Sure, inflation is a problem. But there are different causes for inflation, and different remedies based on those. If inflation is caused by rapid wage growth,

Sure, inflation is a problem. But there are different causes for inflation, and different remedies based on those. If inflation is caused by rapid wage growth, then pushing to cool that growth can help. If, on the other hand, inflation is caused by widespread corporate greed increasing prices to juice profits, trying to cool wage growth won't touch it, and will instead make the situation worse.

astrange 4y ago
Why did companies suddenly become greedy in 2021 when they weren't greedy from 1980 through 2020? Why are they less greedy again in 2023?
- bugglebeetle 4y ago
  They didn’t become greedy, an exogenous shock (COVID) caused real price spikes, which then subsided. Companies then decided the price spikes were a new floor, which they could get away with because of corporate concentration, resulting from lack of regulatory oversight and a congress that is asleep at the wheel/paid off by said corporations.
carlosjobim 4y ago
Inflation can never be caused by wages, since wages are the last thing to increase in price, after everything else has increased. Wage-driven inflation is a propaganda myth.
_heimdall 4y ago
Fun fact - inflation was historically a measure primarily focused on increaseds in the money supply. The definition of inflation as an increase in prices is a modern take, starting in the 80s and 90s. [1] Price changes are a potential side effect of inflation, but prices can be impacted by plenty of other factors including changes in supply and demand. Price changes alone are a pretty meaningless measure without context. Factor in how easily the inflation measures are manipulated and the numbers aren't even reliable measures. [1] https://www.clevelandfed.org/publications/economic-commentary/1997/ec-19971015-on-the-origin-and-evolution-of-the-word-inflation https://www.clevelandfed.org/publications/economic-commentar...

astrange 4y ago

Why did companies suddenly become greedy in 2021 when they weren't greedy from 1980 through 2020? Why are they less greedy again in 2023?

bugglebeetle 4y ago
They didn’t become greedy, an exogenous shock (COVID) caused real price spikes, which then subsided. Companies then decided the price spikes were a new floor, which they could get away with because of corporate concentration, resulting from lack of regulatory oversight and a congress that is asleep at the wheel/paid off by said corporations.

carlosjobim 4y ago

Inflation can never be caused by wages, since wages are the last thing to increase in price, after everything else has increased. Wage-driven inflation is a propaganda myth.

_heimdall 4y ago

Fun fact - inflation was historically a measure primarily focused on increaseds in the money supply. The definition of inflation as an increase in prices is a modern take, starting in the 80s and 90s. [1] Price changes are a potential side effect of inflation, but prices can be impacted by plenty of other factors including changes in supply and demand. Price changes alone are a pretty meaningless measure without context. Factor in how easily the inflation measures are manipulated and the numbers aren't even reliable measures. [1] https://www.clevelandfed.org/publications/economic-commentary/1997/ec-19971015-on-the-origin-and-evolution-of-the-word-inflation https://www.clevelandfed.org/publications/economic-commentar...