The Federal Reserve cut its key interest rate by a quarter-point in response to a steady decline in once-high inflation that angered Americans and helped drive Trump’s election victory.
That isn’t an indicator of current inflation. Past inflation, maybe.
People confuse “everything is expensive” with “inflation is currently high”. It’s an understandable misunderstanding, and part of the reason why Kamala lost.
It’s because of hysteretic effects from 4 years ago when they stopped production of cars and fewer cars were sold because people were staying home. Then there was a supply chain crisis because of the aforementioned shutdown.
It’s inflation because the dollar can buy less than it used to. Things being more expensive is inflation. You’re confusing inflation rate with inflation.
easy, just compare to 5 years ago instead of year-on-year, and that will give you a 24 % inflation.
Now tell me how can you make life affordable again ? increasing wages by 25 % all at once or deflation at 15 % or so? or an all out civil war or something ?
This lie that inflation can only go up without wages keeping up is what the governing class helped by their paid for economists use to keep the working docile until shit hits the fans.
That’s literally the definition of inflation. “Inflation is a loss of purchasing power that reflects a rise in prices for goods and services over time.”
That definition is literally describing a change, as rate of change.
Inflation is a loss of purchasing power
Over the past year, we haven’t experienced a loss of purchasing power. We have a lack of purchasing power, but we lost it over the 2-3 years prior to the last year.
a rise in prices for goods and services over time
This is pretty much the mathematical definition of a rate of change. Like how speed is the rate of change in position over time. After a day of traveling, your position (prices for goods) may be way different than your starting point, but if you’re not currently moving, your speed (inflation) is NIL.
That isn’t an indicator of current inflation. Past inflation, maybe.
People confuse “everything is expensive” with “inflation is currently high”. It’s an understandable misunderstanding, and part of the reason why Kamala lost.
It’s because of hysteretic effects from 4 years ago when they stopped production of cars and fewer cars were sold because people were staying home. Then there was a supply chain crisis because of the aforementioned shutdown. It’s inflation because the dollar can buy less than it used to. Things being more expensive is inflation. You’re confusing inflation rate with inflation.
Inflation rate and inflation are the same. You’re confusing inflation with affordability.
easy, just compare to 5 years ago instead of year-on-year, and that will give you a 24 % inflation.
Now tell me how can you make life affordable again ? increasing wages by 25 % all at once or deflation at 15 % or so? or an all out civil war or something ?
This lie that inflation can only go up without wages keeping up is what the governing class helped by their paid for economists use to keep the working docile until shit hits the fans.
I’m not sure why you’re responding to my comment. What you said seems to be completely unrelated to what I said.
That’s literally the definition of inflation. “Inflation is a loss of purchasing power that reflects a rise in prices for goods and services over time.”
That definition is literally describing a change, as rate of change.
Over the past year, we haven’t experienced a loss of purchasing power. We have a lack of purchasing power, but we lost it over the 2-3 years prior to the last year.
This is pretty much the mathematical definition of a rate of change. Like how speed is the rate of change in position over time. After a day of traveling, your position (prices for goods) may be way different than your starting point, but if you’re not currently moving, your speed (inflation) is NIL.