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Americans Continue to Name Inflation as Top Financial Problem
(news.gallup.com)
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this post was submitted on 05 May 2024
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So for like a dozen years between 2008 to 2020 corporations weren't greedy?
Corporations finding a new way to be greedy does not mean they were not greedy in the past as well.
during those years the corporate/investors focus was on market share growth, so they purposely went for low prices or free when possible. when the money spigot turned off things switched from growth to profit/dividend and consumers are stuck.
Yes, the low interest rates we had for years meant basically free money for all these companies in addition to the low car loan and mortgage rates that the rest of us benefitted from. Interest rates being low was a tool used to pull us out of the recession but nobody had the balls to raise them back when things turned around because you can't win elections by forcing people to take their medicine.
It's the opposite, inflation actually decreased after the rate hikes.
which rate hikes/time period are you talking about?
We had the most inflation in 2022, then the Fed increased rates and the inflation went lower as the rates went higher
You can't just throw an image up. You have to source it or we're going to assume you made it in MSPaint. But you're already showing signs of not understanding what inflation is. It is not some stand alone year by year metric. It's a velocity measurement. Like your car's speedometer. You drove X number of miles in Y time. Instead here it's you rose X points in 1 year. The previous points do not go away. The wage increases from year 4 do not magically erase inflation from years 1-3, unless they beat year 4 inflation by the the sum of inflation from years 1-3.
Source:
https://twitter.com/ah_shapiro/status/1777696160691704213
You're the one who doesn't know that inflation is curbed by interest rates, since you proposed interest rates increase inflation
In fact, higher interest rates decrease inflation
Where in my comment do I even mention interest rates? At any rate, you're not wrong that they're supposed to curb inflation but they haven't. You're own source says-
That's that flat red section. It's unresponsive to the rate change. You can see the blue section responded even before the FED actually made the change. That's when the FED made statements about raising the rate. So we can see that the responsive section was very responsive. But the unresponsive section is keeping rates from properly coming down.
When the Fed makes statements, banks already respond because it affects the curve. If you expect higher rates in the future, you wouldn't accept longer duration bonds right now for the current smaller rate.
So a statement that rates will be increased actually moves them for anything other than the current over night rates
Yes, that's the blue section. The Red section it turns out is the housing sector, that DGAF because they're heavily coordinating prices and there's no cheaper alternative.
Yes, which is dominated by NIMBY policies and housing prices increases in places like SF where building is almost non-existent
Places like Texas only had increases of 0.6%
Now do Metro Area Rent. And do it over the last 4 years. Housing is screwed because of the high interest rate loans locking homeowners in place and dropping the available stock. Landlords however just declared open season on their renter's wallets.
https://www.wsj.com/economy/housing/once-americas-hottest-housing-market-austin-is-running-in-reverse-94226027?mod=e2tw
Landlords only follow the market rates, so housing can easily decrease in price when you actually build
Here's some numbers from a local paper that's not paywalled.
Here's the very enlightening graph.
And finally, here's what landlords think about "just following the market"
I didn't get why you're so resistant to this? We know where the bottleneck is before our economy hits stagflation. We can fix this. And then we'll all celebrate being able to afford celebration again.
What stagflation? The inflation is 3% and the economy is doing just fine
Nice graph, though, since it doesn't include recent price drops. It's 2024 already
Stagflation is high inflation, low growth. One of the warning signs is intractable inflation because it forces a demand crisis once prices get high enough. That causes low growth while inflation is still running away. So yes we're in danger of Stagflation.
You can't get 2024 numbers for most things because it's still 2024. Unless you personally call up an organization that does the tracking to get monthly or quarterly numbers. And unless it's going to drop the price by 20% this year then it's not going back to where it was pre-pandemic.
Again, I'm not sure why you're fighting so hard. We knew there was something going on with inflation not responding. This means we can fix it with new policy and subsidies.
But inflation is only 1% above target?
It's not going to be where it was pre-pandemic, nothing is. But Austin property prices may be flat for the whole year, if not negative.
You don't need to call up any organization, just scrape Zillow, lol
https://www.dailymail.co.uk/yourmoney/property-value/article-13210091/austin-housing-boom-bust-pandemic.html
Just look at the more recent graphs
Considering there was already an unreasonable rise in rents from 2008 on, yeah we really need to actually go back on this one. Accepting the standard corporate position of prices only go up is part of how we got here in the first place.
And it's fine if you want to scrape Zillow's information and do your own spreadsheet. But the Daily Mail would have us believe Austin is in the middle of it's own little 2008 style housing meltdown. If that's true then this really is an exception to the rule right now and we should go back to talking national numbers.
Prices only go up because the amount of dollars only goes up. It's a built-in feature
Greed is just one part of the equation of higher prices. You also need opportunity. If prices ramped up so rapidly without a plausible excuse, then it would lead to an investigation. Hell, the egg producers took their excuse of bird flu too far and jacked up prices about 6x, which was so ridiculous that it did lead to the threat of an investigation and that alone magically got the price down to "only" about 2x.
Which part of the equation is it?
Like how much greed gives you 1% higher prices? How do you measure greed?
It doesn't map so simply. Greed will try to push prices up as high as possible, but what's possible depends on other factors. People can understand how a global pandemic causing supply issues would lead to higher prices, but greed took full advantage of that understanding and pushed it far beyond limits.
It didn't push beyond limits, greed pushes the price exactly up to the limit people will pay.
That's like claiming that no one gets scammed because they were willing to participate.
Usually a scammer doesn't uphold his end of the contract. They promised you something, but you didn't get it.
That's not the case here
There are many scams and a lot of them don't involve a contract at all. There are also ones that do involve a contract and upholding it is part of the scam. Regardless, you missed the point that just because someone pays the price, doesn't mean everything is fine and dandy.
There's an implied verbal contract when you say you're providing a service and you are in fact not.
My point is that a lot of people are fine with paying the price they are paying. The people who are not can just stop