Why are things so expensive?

[Libby von H]

Crepitus tried to start a thread on this and blamed corporations, which is the only think the Left knows to do. However, the politically deranged partisan hacks are either incapable of understanding the truth, or they purposefully suppress it in order to continue business as usual for their own political wants. However, without a link and any factual backing whatsoever, the thread was closed. LOL.

Surprise, surprise.

But it is not really that hard to understand at all. Inflation is causing prices to rise, so what causes inflation?

What Causes Inflation?

What causes inflation? There is no one answer, but like so much of macroeconomics it comes down to a mix of output, money, and expectations. Supply shocks can lower an economy’s potential output, driving up prices. An increase in the money supply can stoke demand, driving up prices. And the...

hbr.org

At its root, inflation is driven by too much demand relative to supply. More precisely, as former Fed chair Ben Bernanke writes in his macroeconomics textbook with Andrew Abel: “Inflation occurs when the aggregate quantity of goods demanded at any particular price level is rising more quickly than the aggregate quantity of goods supplied at that price level.”

But what causes demand to outpace supply? That can happen for a few different reasons, and to understand them it helps to consider the three pillars of macroeconomics that David Moss describes in his book A Concise Guide to Macroeconomics: What Managers, Executives, and Students Need to Know. Moss structures the book based on output (how much an economy produces), money (how much currency people have or can easily get their hands on), and expectations (what people think will happen next). All three have a role in inflation.
1. Supply shocks: Inflation often happens because of supply shocks — major disruptions to an important economic input, like energy. For example, if a lot of oil fields stop producing oil because of a war, the price of energy increases. Since energy is a critical input into almost every other good, prices of other things rise, too. This is often called “cost-push inflation.”
I would add that when there is a global war on fossil fuels, this also mandates that the reduction of fossil fuels creates a disruption. When governments around the world begin to curb the fossil fuels industry from obtaining their fossil fuels, the only possible end result will be higher prices for everything. But this article is too PC to bring this topic up. Barak Obama basically admitted to this long ago


2. Money supply: Then there’s the demand side of the equation. An increase in the money supply will tend to cause inflation, as Moss explains. “With more cash in their pockets and bank accounts, consumers often find new reasons to buy things,” he writes in the book. “But unless the supply of goods and services has increased in the meantime, the consumers’ mounting demand for products will simply bid up prices, thus stoking inflation. Economists sometimes say that inflation rises when ‘too much money is chasing too few goods.’” This is sometimes referred to as “demand-pull inflation.”

I would add that with government printing money more than ever before, the only possible result can be increased inflation. Again, the article is too PC to point this fact out as well.

3. Unemployment and inflation. Recall that the root of inflation is too much demand relative to supply. Another way of thinking about the same idea is to ask how much “slack” there is in the economy at any point in time. An economy produces stuff using people’s time and ingenuity, machines and other infrastructure, and natural resources. But for various reasons, economies sometimes don’t produce as much as they could: There are lots of workers without jobs, factories that aren’t producing anything, etc. In the wake of the 2008 financial crisis, this high unemployment happened in many countries. There was a lot of “slack” in the economy, meaning lots of economic resources weren’t being put to use.


Again, the article is too PC to bring up the fact that the worldwide Covid shutdowns did this precise thing. The fact that there is a worldwide war on fossil fuels and a worldwide economic shutdown is why there is a worldwide inflation problem. However, the insane spending in the US has made things far worse in the US.

Most of the standard Economics texts say that national spending such as Biden is doing will impair seriously the economy.
WE know this.

 

[rightwinger]

Most of the standard Economics texts say that national spending such as Biden is doing will impair seriously the economy.
WE know this.

They also say that austerity will destroy the economy

 

[Libby von H]

Here is the sad reality of capitalism that requires growth to work

Prices double-100 years
prices double-50 years
prices double 25 years
prices double 12 1/2 years
prices double 6 1/4 years
prices double 3 years

Things are getting out of control. The rich NEVER get enough.

No,that is false for 3 major reasons.
1) The rich are being made by the government
Jan 13, 2014 — Of the 534 current members of the House and Senate, 268 had an average net worth of $1 million or more in 2012 – up from 257 members in 2011
WELL KNOWN

2) If the economy goes it will be declining birthrate way ahead of anything you attempt to show. The welfare state depends on the pyramid, workers the bottom to support the top. That you dont know this should amaze readers

3) By that 'logic' we should never have had the Industrial Revolution , the Computer Revolution. or the Green revolution.
Pricing in several markets is indisputably controlled by President and lawmakers.
IN both Biden has increased costs while saying he was doing the opposite.
So EDUCATION
many studies have found an inflationary effect, including one from the Federal Reserve Bank of New York that found that for every dollar increase in “subsidized” student loans colleges raised their prices 60 cents. Frankly, statistical research is not necessary to see this.Sep 1, 2022

So HOUSING
He already earne the hate of buyers and sellers by crippling the credits scores of millions of people (look it up)
Then he did 2 stupid textbook things to actually destroy the market

====> Biden unveiled a plan to give homebuyers $400 per month for mortgage payments over the next two years “as mortgage rates come down.” It didn’t take long for most people with a basic understanding of economics or an ounce of common sense to recognize that government subsidies — especially during a time of falling interest rates — would lead to more demand and, thus, even higher housing prices.

=====> <p>To start with, the closing costs associated with selling and then buying a home (broker commissions, inspection and appraisal fees, loan-origination fees, etc.) would easily take up most if not all of that $10,000. But more importantly, increased housing payments would quickly exceed $10,000, and after that credit expires after the first year, the new homeowner would be drastically worse off.</p>


HE IS A STUPID AND LAZY MAN, ALWAYS HAS BEEN

 

[kjw47]

They also say that austerity will destroy the economy

Hearts filled with selfish GREED is destroying it all.

 

[Dragonlady]

Crepitus tried to start a thread on this and blamed corporations, which is the only think the Left knows to do. However, the politically deranged partisan hacks are either incapable of understanding the truth, or they purposefully suppress it in order to continue business as usual for their own political wants. However, without a link and any factual backing whatsoever, the thread was closed. LOL.

Surprise, surprise.

But it is not really that hard to understand at all. Inflation is causing prices to rise, so what causes inflation?

What Causes Inflation?

What causes inflation? There is no one answer, but like so much of macroeconomics it comes down to a mix of output, money, and expectations. Supply shocks can lower an economy’s potential output, driving up prices. An increase in the money supply can stoke demand, driving up prices. And the...

hbr.org

At its root, inflation is driven by too much demand relative to supply. More precisely, as former Fed chair Ben Bernanke writes in his macroeconomics textbook with Andrew Abel: “Inflation occurs when the aggregate quantity of goods demanded at any particular price level is rising more quickly than the aggregate quantity of goods supplied at that price level.”

But what causes demand to outpace supply? That can happen for a few different reasons, and to understand them it helps to consider the three pillars of macroeconomics that David Moss describes in his book A Concise Guide to Macroeconomics: What Managers, Executives, and Students Need to Know. Moss structures the book based on output (how much an economy produces), money (how much currency people have or can easily get their hands on), and expectations (what people think will happen next). All three have a role in inflation.
1. Supply shocks: Inflation often happens because of supply shocks — major disruptions to an important economic input, like energy. For example, if a lot of oil fields stop producing oil because of a war, the price of energy increases. Since energy is a critical input into almost every other good, prices of other things rise, too. This is often called “cost-push inflation.”
I would add that when there is a global war on fossil fuels, this also mandates that the reduction of fossil fuels creates a disruption. When governments around the world begin to curb the fossil fuels industry from obtaining their fossil fuels, the only possible end result will be higher prices for everything. But this article is too PC to bring this topic up. Barak Obama basically admitted to this long ago


2. Money supply: Then there’s the demand side of the equation. An increase in the money supply will tend to cause inflation, as Moss explains. “With more cash in their pockets and bank accounts, consumers often find new reasons to buy things,” he writes in the book. “But unless the supply of goods and services has increased in the meantime, the consumers’ mounting demand for products will simply bid up prices, thus stoking inflation. Economists sometimes say that inflation rises when ‘too much money is chasing too few goods.’” This is sometimes referred to as “demand-pull inflation.”

I would add that with government printing money more than ever before, the only possible result can be increased inflation. Again, the article is too PC to point this fact out as well.

3. Unemployment and inflation. Recall that the root of inflation is too much demand relative to supply. Another way of thinking about the same idea is to ask how much “slack” there is in the economy at any point in time. An economy produces stuff using people’s time and ingenuity, machines and other infrastructure, and natural resources. But for various reasons, economies sometimes don’t produce as much as they could: There are lots of workers without jobs, factories that aren’t producing anything, etc. In the wake of the 2008 financial crisis, this high unemployment happened in many countries. There was a lot of “slack” in the economy, meaning lots of economic resources weren’t being put to use.


Again, the article is too PC to bring up the fact that the worldwide Covid shutdowns did this precise thing. The fact that there is a worldwide war on fossil fuels and a worldwide economic shutdown is why there is a worldwide inflation problem. However, the insane spending in the US has made things far worse in the US.

Any article that doesn't blame the people you want to blame is "too PC" for you. I note that at the end of the piece you revert to you basic beliefs that it's caused by Democrats and their policies.

But it's good to see you learning something about basic economics. You keep opining on things you know nothing about and your ignornance on the economy makes your posts laughable.

There is no "worldwide war on fossil fuels". There is a transition from carbon fuels to cleaner, cheaper, green energy.

If you had a brain, you'd realize that the USA has a tremendous amount of economic opportunity for the nation to make money during that conversion. Instead you clutch your pearls about all of the costs, and job losses in the fossil fuel industry.

You're like the guy watching someone drive by in a car 100 years ago and yelling "Get a horse!!!" And commenting that these things will never catch on because you'll need a chain of gas stations from coast to coast to make them practical. And what about the blacksmith, and stable hands. What are they going to do for work?

 

[Godboy]

So your point is that the most populated states have the most homeless?

No, his point is that they have not only more homeless, but also much higher percentages of homeless.

 

[leftwinger]

There is no demand. Look at the sales. They are half.


U.S.: car sales per year 1951-2023 | Statista.

Half. It’s not demand.
View attachment 913255

your link is passenger cars. SUV, light Trucks not shown. Virus launch slowed production. Cost up nearly 2X? It was Hard to get a car, SUV or Truck for a long time? Not sure anymore. Your chart is not the whole story (as usual).

 

[Dragonlady]

Load up fast before the shortages show and there will be hyper inflation by the fall .
That Baltimore False Flag will hurt much more than 9/11.

Always cheering for America to fail. That's today's Republican voter.

 

[Dragonlady]

No Biden's regulations are driving up gasoline cars prices. He is doing it on purpose, to force people in EV's. Most people cannot afford an $80,000 car, that the battery only last about 4 year's. Liberalism destroys everything.

EV don't cost $80,000 and the batteries last longer than 4 years. EV batteries last between 100,000 and 200,000 miles - between 10 and 20 years.

How Much Do Electric Cars Cost?

How much do electric cars cost? These days the cost of many EVs is almost at parity with gas cars.

www.caranddriver.com

https://cars.usnews.com/cars-trucks/advice/how-long-do-ev-batteries-last#:~:text=Many%20experts%20peg%20the%20lifespan,covered%20by%20the%20manufacturer's%20warranty.

Members of my family have owned EV's since Toyota first starting producting them. My BIL is a retired Toyota worker and he's been driving them for years. My daughter had a 10 year old EV with the original battery. Neither of them have every replaced a battery.

But keep believe the lies.

 

[rightwinger]

No, his point is that they have not only more homeless, but also much higher percentages of homeless.

Why do Red States have less homeless?

Because they harass them and make their lives miserable

 

[Godboy]

Why do Red States have less homeless?

Because they harass them and make their lives miserable

Yep, in red states you cant count on us making it VERY hard to be homeless and put up tents on sidewalks. For once we agree.

 

[Thinker101]

Why do Red States have less homeless?

Because they harass them and make their lives miserable

Yep, nothing quite as fulfilling as a life camped out on a sidewalk...dumbass.

 

[kjw47]

Always cheering for America to fail. That's today's Republican voter.

It is doomed to fail from the start- A house divided will not stand.

 

[leftwinger]

In 1977, SUVs and trucks together represented 23 percent of American new car sales; today they comprise more than 80 percent.

Stay of Statistica you dumb OXYEN.

 

[CrazyTrader55]

Any article that doesn't blame the people you want to blame is "too PC" for you. I note that at the end of the piece you revert to you basic beliefs that it's caused by Democrats and their policies.

But it's good to see you learning something about basic economics. You keep opining on things you know nothing about and your ignornance on the economy makes your posts laughable.

There is no "worldwide war on fossil fuels". There is a transition from carbon fuels to cleaner, cheaper, green energy.

If you had a brain, you'd realize that the USA has a tremendous amount of economic opportunity for the nation to make money during that conversion. Instead you clutch your pearls about all of the costs, and job losses in the fossil fuel industry.

You're like the guy watching someone drive by in a car 100 years ago and yelling "Get a horse!!!" And commenting that these things will never catch on because you'll need a chain of gas stations from coast to coast to make them practical. And what about the blacksmith, and stable hands. What are they going to do for work?

Electric cars don't make sense for middle class America, and especially those who are not in large cities, with short commutes. Fossil fuels are going to be around for a long time. If electric cars were so great, why did Hertz just take a massive loss on them? Answer: because people don't want them.

 

[Dragonlady]

No, his point is that they have not only more homeless, but also much higher percentages of homeless.

Well of course they do. Smaller populations don't need as much housing and generally have a surplus. Plus, the rents and prices are so low that people can afford the rents.

The more people looking for housing, the higher the cost of the rents. The cities don't have slums because people are lazy and don't work. They have slums because low income residents have barely enough to pay the rents that are triple or quadruple the housing costs in small towns, and landlords don't make repairs.

Office workers are living in small RV's and other substandard housing because even what used to be middle class wages, will not get you stable housing in California.

 

[Godboy]

Well of course they do. Smaller populations don't need as much housing and generally have a surplus. Plus, the rents and prices are so low that people can afford the rents.

The more people looking for housing, the higher the cost of the rents. The cities don't have slums because people are lazy and don't work. They have slums because low income residents have barely enough to pay the rents that are triple or quadruple the housing costs in small towns, and landlords don't make repairs.

Office workers are living in small RV's and other substandard housing because even what used to be middle class wages, will not get you stable housing in California.

You act like the rampant homelessness in your democrat cities has always been this high. Thats not true at all. The truth is, your progressive policies caused homelessness to spike dramatically, and the fact that you guys are completely incapable of recognizing your mistakes and make a course correction is why your cities fucking suck and will continue to suck.

 

[citygator]

You act like the rampant homelessness in your democrat cities has always been this high. Thats not true at all. The truth is, your progressive policies caused homelessness to spike dramatically, and the fact that you guys are completely incapable of recognizing your mistakes and make a course correction is why your cities fucking suck and will continue to suck.

People are wealthier than ever. There is always poverty. I am for poverty fighting policies. Which policies to fight poverty are you for?

 

[Thinker101]

People are wealthier than ever. There is always poverty. I am for poverty fighting policies. Which policies to fight poverty are you for?

Which part of "homelessness has not been this high" is difficult for you to understand?

 

[Godboy]

People are wealthier than ever. There is always poverty. I am for poverty fighting policies. Which policies to fight poverty are you for?

Im fighting to not have open drug dens and tent cities.