Hygro
soundcloud.com/hygro/
Where I live, we've had like 5-10% annual inflation for years. It's not an issue. However, the rest of y'all are now experiencing the same level of inflation that we had ignored, because it doesn't matter.
The current inflation is right in that range. 7.5% or so. Let's discuss the causes:
1) Cause 1: coronavirus interrupted the supply of goods and services, from the supply-chain to the work to finish and serve them, making them scarcer.
That's it.
Only half joking, because cause 2 is a subset of cause 1:
2) In order to keep everyone fed and in homes, congress spent a few trillion into existence. Now, this was enough to end the year-to-year chronic demand shortage we faced since, I dunno, 1999? It would not have been significantly inflationary without the covid-driven supply shortage. Nor will it be when covid is over and we resume trade and and commerce fully.
The inflation is transitory.
But what about all those idiots who make fun of it being called transitory, by writing "tRaNsItOrY"? Pay them no heed, transitory means TIME_OF_EVENT + EVENT_UNWIND_PERIOD. So that means the years of covid plus a couple more years. That's transitory. Months-long oil crises in the 70s (there were 2) each caused about three years of inflation.
What should we do about the inflation?
Nothing.
Seriously, why would we cause a recession and make people default on their loans just to artificially keep prices down for those who can keep their jobs and loans during the recession? Like, it doesn't make sense humanistically, and it doesn't make sense economically. Unless you're a class-eugenicist or otherwise social-darwinist who wants people to lose when the government decides a number shouldn't budge.
Isn't inflation making us poorer?
No, but the cause of inflation is, and stopping the inflation doesn't stop the cause. Either that cause will make you have less spending power represented in inflation that we all share, or that cause will risk your job, cause your business to receive fewer sales, reduce your wage/employment bargaining power, and otherwise make you poorer on the income side.
However, just I predicted, when I predicted the inflation back in March of 2020, I predicted the political discussion would turn toward treating the inflation like an economic crisis. It is not.
The current inflation is right in that range. 7.5% or so. Let's discuss the causes:
1) Cause 1: coronavirus interrupted the supply of goods and services, from the supply-chain to the work to finish and serve them, making them scarcer.
That's it.
Only half joking, because cause 2 is a subset of cause 1:
2) In order to keep everyone fed and in homes, congress spent a few trillion into existence. Now, this was enough to end the year-to-year chronic demand shortage we faced since, I dunno, 1999? It would not have been significantly inflationary without the covid-driven supply shortage. Nor will it be when covid is over and we resume trade and and commerce fully.
The inflation is transitory.
But what about all those idiots who make fun of it being called transitory, by writing "tRaNsItOrY"? Pay them no heed, transitory means TIME_OF_EVENT + EVENT_UNWIND_PERIOD. So that means the years of covid plus a couple more years. That's transitory. Months-long oil crises in the 70s (there were 2) each caused about three years of inflation.
What should we do about the inflation?
Nothing.
Seriously, why would we cause a recession and make people default on their loans just to artificially keep prices down for those who can keep their jobs and loans during the recession? Like, it doesn't make sense humanistically, and it doesn't make sense economically. Unless you're a class-eugenicist or otherwise social-darwinist who wants people to lose when the government decides a number shouldn't budge.
Isn't inflation making us poorer?
No, but the cause of inflation is, and stopping the inflation doesn't stop the cause. Either that cause will make you have less spending power represented in inflation that we all share, or that cause will risk your job, cause your business to receive fewer sales, reduce your wage/employment bargaining power, and otherwise make you poorer on the income side.
However, just I predicted, when I predicted the inflation back in March of 2020, I predicted the political discussion would turn toward treating the inflation like an economic crisis. It is not.
