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Inflation means there’s too much money in the system. You can pull it out with high interest rates (every bank loan is more money in circulation), which hurts e

by pkulak 3y ago

Inflation means there’s too much money in the system. You can pull it out with high interest rates (every bank loan is more money in circulation), which hurts everyone who doesn’t have money, or you can raise taxes, hopefully mostly on the wealthy. Guess which direction we always go?

autoexec 3y ago
> Inflation means there’s too much money in the system No, inflation just means the prices for goods and services have increased. It can be caused by all kinds of things. Fluctuations in supply and demand are common drivers. In this case, it's largely the result of greed and price gouging. In 2021 supply was so much higher than demand that companies started to panic about the lack of available warehouse space! There's absolutely too much money somewhere, but it's not in the hands of the average American. Household debt has been hitting record highs every year since the pandemic started while consumers struggle to meet their needs amidst soaring prices. The American people are seeing a decline in their standard of living as wages fail to keep up with price increases. Homelessness is rising. Utility disconnections are up. Americans are putting off healthcare because of inflation. Companies raising their prices are making money hand over fist and pulling in record profits year after year. It's easy to see where the problem is. Sadly you're right that they'd rather keep taking from those least able to afford it.
- pkulak 3y ago
  You're not really disagreeing with me. "Fluctuations in supply and demand" can cause there to be "too much money in the system". If supply drops, for example, there's too much money chasing too few goods. Same with demand rising.
gmerc 3y ago
That’s not actually what inflation shows. There are different types of money - and the money pumped by the fed before mostly didn’t matter because it didn’t move into the economy. Covid aid did of course. No current inflation is a result of companies jacking prices. Because they can. Because regulation failed.

by pkulak 3y ago

autoexec 3y ago

> Inflation means there’s too much money in the system No, inflation just means the prices for goods and services have increased. It can be caused by all kinds of things. Fluctuations in supply and demand are common drivers. In this case, it's largely the result of greed and price gouging. In 2021 supply was so much higher than demand that companies started to panic about the lack of available warehouse space! There's absolutely too much money somewhere, but it's not in the hands of the average American. Household debt has been hitting record highs every year since the pandemic started while consumers struggle to meet their needs amidst soaring prices. The American people are seeing a decline in their standard of living as wages fail to keep up with price increases. Homelessness is rising. Utility disconnections are up. Americans are putting off healthcare because of inflation. Companies raising their prices are making money hand over fist and pulling in record profits year after year. It's easy to see where the problem is. Sadly you're right that they'd rather keep taking from those least able to afford it.

pkulak 3y ago
You're not really disagreeing with me. "Fluctuations in supply and demand" can cause there to be "too much money in the system". If supply drops, for example, there's too much money chasing too few goods. Same with demand rising.

gmerc 3y ago

That’s not actually what inflation shows. There are different types of money - and the money pumped by the fed before mostly didn’t matter because it didn’t move into the economy. Covid aid did of course. No current inflation is a result of companies jacking prices. Because they can. Because regulation failed.