3 ms·

Inflation can stop but that won’t undo the damage. Unless we get deflation (very rare), it will never drop below 1k for you again.

bruce511 3y ago
Firstly you -really- don't want deflation. That'll kill an economy real quick. Second, we get deflation of specific goods all the time. Electronics and solar equipment are the poster child for this. An Apple 2 cost a lot more than my most recent machine. Thirdly, wages rise to compensate with inflation. Ask your grandfather what their first car cost. Then ask them about their first salary check. I get that people get antsy when they see prices go up. I get that a combination of increased demand and constrained supply both work to increase specific things (housing in SF). I get that your employer may not be increasing wages to match inflation. I get that people on fixed income pensions feel inflation a lot. (Let their pain be your education; don't use fixed income products as your retirement plan.) But equally don't use a word like "damage" here. There's no damage. The price of goods is always in flux, and always the result of many different interlocking numbers. I understand that to folks who have grown up in zero-inflation environment that this can seem scary. But, from one who has lived my whole life in a single-digit inflation environment, its not scary. You just get/give a wage bump each year to compensate. And yeah, I get that US employers are profit hungry and less inclined to pay living wages. If you're starting a business I heartily suggest you build inflation into your wage bill .
- Ferret7446 3y ago
  > Firstly you -really- don't want deflation. That'll kill an economy real quick. Everyone repeats that as mantra but I think that should be challenged. I find it doubtful that inflation is needed to encourage spending or investment. Currency inflates naturally (that is, loses value) because it is not inherently useful, and things you can exchange for it are more useful today than they are tomorrow. You won't skip buying a burger today to buy two burgers next year if you're going to starve. And even for luxuries, they are worth more today than next year, because lifespans are limited.
  - bruce511 3y ago
    We don't need to speculate. Japan was a global economic powerhouse in the 80s and 90s. Deflation started in 2001 and the fall has been precipitous.
- kortilla 3y ago
  I don’t know what you’re desperately trying to defend here. Groceries are a big basket of foods and household supplies. When the price of this category goes up faster than wages it hurts low and middle class people. This isn’t some optional good like travel. > But equally don't use a word like "damage" here. There's no damage. You come across as an out of touch loon when you say something like that right after shitting on people who have fixed incomes. Inflation is damage to the value of the currency and that impacts everyone.
  - bruce511 3y ago
    Actually everyone in debt benefits from the currency devaluing. Especially debt with a fixed interest rate.
    - jliptzin 3y ago
      Yea, if you have a fixed rate mortgage, you’re doing really well in this environment

bruce511 3y ago

Firstly you -really- don't want deflation. That'll kill an economy real quick. Second, we get deflation of specific goods all the time. Electronics and solar equipment are the poster child for this. An Apple 2 cost a lot more than my most recent machine. Thirdly, wages rise to compensate with inflation. Ask your grandfather what their first car cost. Then ask them about their first salary check. I get that people get antsy when they see prices go up. I get that a combination of increased demand and constrained supply both work to increase specific things (housing in SF). I get that your employer may not be increasing wages to match inflation. I get that people on fixed income pensions feel inflation a lot. (Let their pain be your education; don't use fixed income products as your retirement plan.) But equally don't use a word like "damage" here. There's no damage. The price of goods is always in flux, and always the result of many different interlocking numbers. I understand that to folks who have grown up in zero-inflation environment that this can seem scary. But, from one who has lived my whole life in a single-digit inflation environment, its not scary. You just get/give a wage bump each year to compensate. And yeah, I get that US employers are profit hungry and less inclined to pay living wages. If you're starting a business I heartily suggest you build inflation into your wage bill .

Ferret7446 3y ago
> Firstly you -really- don't want deflation. That'll kill an economy real quick. Everyone repeats that as mantra but I think that should be challenged. I find it doubtful that inflation is needed to encourage spending or investment. Currency inflates naturally (that is, loses value) because it is not inherently useful, and things you can exchange for it are more useful today than they are tomorrow. You won't skip buying a burger today to buy two burgers next year if you're going to starve. And even for luxuries, they are worth more today than next year, because lifespans are limited.
- bruce511 3y ago
  We don't need to speculate. Japan was a global economic powerhouse in the 80s and 90s. Deflation started in 2001 and the fall has been precipitous.
kortilla 3y ago
I don’t know what you’re desperately trying to defend here. Groceries are a big basket of foods and household supplies. When the price of this category goes up faster than wages it hurts low and middle class people. This isn’t some optional good like travel. > But equally don't use a word like "damage" here. There's no damage. You come across as an out of touch loon when you say something like that right after shitting on people who have fixed incomes. Inflation is damage to the value of the currency and that impacts everyone.
- bruce511 3y ago
  Actually everyone in debt benefits from the currency devaluing. Especially debt with a fixed interest rate.
  - jliptzin 3y ago
    Yea, if you have a fixed rate mortgage, you’re doing really well in this environment