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I don't think you get it yet. If I pour water into a cup and the line says 100 ML there's 100 ML of water. That measurement of 100 ML is a descriptor of how mu

I don't think you get it yet. If I pour water into a cup and the line says 100 ML there's 100 ML of water. That measurement of 100 ML is a descriptor of how much water that is. Inflation is a descriptor of how much prices have increased. If we measure the line a second time and it says 120 ML then the water level has increased (i.e. inflation occurred). But why inflation occurred is not know _just_ by measuring the water level. If firms increase their prices by 10% then the firm is causing inflation (prices have increased). If said firm also gets a 10% increase in their profits then we people would say inflation is entirely driven by profits (although probably strictly inaccurate). However at no point does "inflation" cause something. Inflation is _just_ a measurement. -- Sticking with the incorrect math, if your prices go up 10% and your profits go up 10% you are the cause of inflation. If your suppliers increased their prices by 10% so you increased your prices 10% then your profit goes up 0% and if your suppliers profit went up 10% then they're the cause of inflation. This second example is why people are getting upset. Companies are all complaining they need to raise prices "due to inflation" but since their profit margins are just getting better people are suspicious of how much of the price increase is dictated by their supplier's price increases versus greed (value pricing).

WalterBright 3y ago
> I don't think you get it yet. Au contraire. Inflation comes from too much money chasing too few goods and services. How does too much money come about? The government prints money to deficit spend. Why does this cause inflation? The Law of Supply and Demand. Too much money means the money is worth less. Individual companies cannot cause inflation, because they cannot increase the money supply.
- lesuorac 3y ago
  > Individual companies cannot cause inflation, because they cannot increase the money supply. No, you really don't know what the word inflation means in the economic sense. >> https://www.google.com/search?q=define+inflation https://www.google.com/search?q=define+inflation >> ECONOMICS >> a general increase in prices and fall in the purchasing value of money. Also companies can 100% increase their prices and if a singular company such as Exxon does it then pretty much every company will also increase their prices because their cost of revenue went up.
  - WalterBright 3y ago
    Where does the extra money come from, lesuorac? > companies can 100% increase their prices Only if the consumers have the money, and are willing to pay it and not their competitor. Where do they get the extra money?
    - lesuorac 3y ago
      I see you've moved past trying to argue what the definition of inflation is so I can only assume you've agreed me with. So to move on to your new topic, there is a framing problem here. There does not need to be extra money during a period with inflation. If I had $100 dollars and potatoes are $2 and a car is $50 I can get 25 potatoes and 1 car. If the costs of a car increases to $80 I can get 10 potatoes and 1 car. Inflation has occurred and I haven't done any changes to the money supply here. And then of course, Inflation isn't a new word post-Bretton Woods; there was inflation when people used gold as currency.

WalterBright 3y ago

> I don't think you get it yet. Au contraire. Inflation comes from too much money chasing too few goods and services. How does too much money come about? The government prints money to deficit spend. Why does this cause inflation? The Law of Supply and Demand. Too much money means the money is worth less. Individual companies cannot cause inflation, because they cannot increase the money supply.

lesuorac 3y ago
> Individual companies cannot cause inflation, because they cannot increase the money supply. No, you really don't know what the word inflation means in the economic sense. >> https://www.google.com/search?q=define+inflation https://www.google.com/search?q=define+inflation >> ECONOMICS >> a general increase in prices and fall in the purchasing value of money. Also companies can 100% increase their prices and if a singular company such as Exxon does it then pretty much every company will also increase their prices because their cost of revenue went up.
- WalterBright 3y ago
  Where does the extra money come from, lesuorac? > companies can 100% increase their prices Only if the consumers have the money, and are willing to pay it and not their competitor. Where do they get the extra money?
  - lesuorac 3y ago
    I see you've moved past trying to argue what the definition of inflation is so I can only assume you've agreed me with. So to move on to your new topic, there is a framing problem here. There does not need to be extra money during a period with inflation. If I had $100 dollars and potatoes are $2 and a car is $50 I can get 25 potatoes and 1 car. If the costs of a car increases to $80 I can get 10 potatoes and 1 car. Inflation has occurred and I haven't done any changes to the money supply here. And then of course, Inflation isn't a new word post-Bretton Woods; there was inflation when people used gold as currency.