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Isn't it funny that everyone right of center thinks inflation is due to trillions of dollars added to the economy and everyone left of center thinks inflation i
by pc86 3y ago
Isn't it funny that everyone right of center thinks inflation is due to trillions of dollars added to the economy and everyone left of center thinks inflation is due to people in 3-piece suits and monocles wanting another boat?
- lazide 3y agoWhy can't it be both?
- WalterBright 3y agoThe Law of Supply and Demand. For example, open a lemonade stand in your neighborhood. Charge $20 a cup. See how it goes.
- lazide 3y agoHow about I run a bunch of fear ads and sell ammo for $20/box instead. I think we both know how it will go on that one.
- WalterBright 3y agoGo right ahead! Let us know how it turns out.
- lazide 3y agoBeen working out quite well even without the ads, actually.
- WalterBright 3y agoAnother poster said $20 was about market rate, so the example does not demonstrate that people will pay whatever you ask.
- lazide 3y agoIt was half that pre-Covid. ‘Market rate’ is exactly what I’m talking about.
- pc86 3y agoA better example would be $500/box since $20/box is about market rate depending on the exact kind and caliber (assuming 9mm or 45 which is going to cover the overwhelming majority of handguns). No ad is going to make $500/box for 9mm or 45 handgun ammunition seem reasonable.
- lotsofpulp 3y agoWhere are the people that think inflation is inevitable because there is always a political push from the most active political constituency (old people/about to be old people/their beneficiaries) to keep asset prices rising to be able to fulfill their demands from labor suppliers (younger, less experienced, less politically active)? Especially entertaining with the way demographics are going. It wasn’t much of an issue in previous decades due to momentum of population growth.
- pc86 3y agoSome moderate level of inflation is a pretty basic economic principle. Too much and you cause some problems but none or negative and you see a whole host of other issues. That's like saying the fact the first couple payments on a loan are almost all interest because of a conspiracy among politically active bankers, when in actuality it's because that's how math works.
- deleted 3y ago[deleted]
- lotsofpulp 3y agoYes, small positive inflation is better than any negative inflation. But the inflation in land/education/healthcare is quite a bit more than that.
- WalterBright 3y ago> Some moderate level of inflation is a pretty basic economic principle The US had zero net inflation from 1800 to 1914, and fantastic prosperity.
- maraphon 3y agoUS property owners enjoyed vast expanses of unexploited resources to tap and legally protected exploitation of whole classes of people to help them do so. I hope you are not claiming that that (limited) prosperity wasn't generated by wiser and more humane policies than today's.