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Lower inflation doesn’t mean prices fall, it means they go up slower.

nytesky 3y ago
This is what everyone forgets. What’s worse is “inflation” showing maybe that wage growth catching up to prices maybe what is slowing. It takes some finesse to see what is really happening
no_wizard 3y ago
I'm saying prices aren't dropping and wages aren't keeping pace not as saying inflation isn't coming down but as a statement of observation. IE, the reality on the ground is prices are in fact, not falling (or falling enough) and wages aren't keeping pace with that fact, as an observation that these reports on inflation feel entirely meaningless to the challenges US citizens face economically right now.
- arcticbull 3y ago
  > I'm saying prices aren't dropping and wages aren't keeping pace not as saying inflation isn't coming down but as a statement of observation. IE, the reality on the ground is prices are in fact, not falling (or falling enough) and wages aren't keeping pace with that fact. But they are though. The median wage is now higher than Q4 2019 in both real and nominal terms. Real: https://fred.stlouisfed.org/series/LES1252881600Q https://fred.stlouisfed.org/series/LES1252881600Q Nominal: https://fred.stlouisfed.org/series/LES1252881500Q https://fred.stlouisfed.org/series/LES1252881500Q Maybe this particular group isn't feeling it because there's been a lot of layoffs, and we're still swinging back from the 2021-2 over-hiring specifically in tech. But the for the median American this simply isn't true. The purchasing power of the median American wage has been on a broad up-trend since Q4 1997.
- littlestymaar 3y ago
  > IE, the reality on the ground is prices are in fact, not falling (or falling enough) But your expectations are misplaced, prices won't fall in any case. If the success you expect from a monetary policy is to see price failing, you'll remain disappointed forever. It's almost as if you complained that despite consecutive announcements in battery efficiency your laptop battery still isn't infinite. Wage are catching up, with overall CPI, but some goods have grown so high in prices it's going to be long before the purchasing power for then reach it's previous level.

This is what everyone forgets. What’s worse is “inflation” showing maybe that wage growth catching up to prices maybe what is slowing. It takes some finesse to see what is really happening

no_wizard 3y ago

I'm saying prices aren't dropping and wages aren't keeping pace not as saying inflation isn't coming down but as a statement of observation. IE, the reality on the ground is prices are in fact, not falling (or falling enough) and wages aren't keeping pace with that fact, as an observation that these reports on inflation feel entirely meaningless to the challenges US citizens face economically right now.

arcticbull 3y ago
> I'm saying prices aren't dropping and wages aren't keeping pace not as saying inflation isn't coming down but as a statement of observation. IE, the reality on the ground is prices are in fact, not falling (or falling enough) and wages aren't keeping pace with that fact. But they are though. The median wage is now higher than Q4 2019 in both real and nominal terms. Real: https://fred.stlouisfed.org/series/LES1252881600Q https://fred.stlouisfed.org/series/LES1252881600Q Nominal: https://fred.stlouisfed.org/series/LES1252881500Q https://fred.stlouisfed.org/series/LES1252881500Q Maybe this particular group isn't feeling it because there's been a lot of layoffs, and we're still swinging back from the 2021-2 over-hiring specifically in tech. But the for the median American this simply isn't true. The purchasing power of the median American wage has been on a broad up-trend since Q4 1997.
littlestymaar 3y ago
> IE, the reality on the ground is prices are in fact, not falling (or falling enough) But your expectations are misplaced, prices won't fall in any case. If the success you expect from a monetary policy is to see price failing, you'll remain disappointed forever. It's almost as if you complained that despite consecutive announcements in battery efficiency your laptop battery still isn't infinite. Wage are catching up, with overall CPI, but some goods have grown so high in prices it's going to be long before the purchasing power for then reach it's previous level.