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CrusaderFrank

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
 

AquaAthena

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
Yes, our dollar has been shrinking for a long while, now....
 

pinqy

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
Yes. The CPI takes that into account when calculating inflation. Your coffee example would show an increase of 33% and your cereal example would show an increase of 42.9%
 

Oddball

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
Silver @ $7.00 in '05 now going in excess of $33.00.

But inflation is being held in check! :rolleyes:
 
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CrusaderFrank

CrusaderFrank

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
Yes. The CPI takes that into account when calculating inflation. Your coffee example would show an increase of 33% and your cereal example would show an increase of 42.9%
I didn't see where it adjusted for produce size. It looked like it just counted what a consumer spends for a product and not how much of the product they were buying
 

pinqy

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
Yes. The CPI takes that into account when calculating inflation. Your coffee example would show an increase of 33% and your cereal example would show an increase of 42.9%
I didn't see where it adjusted for produce size. It looked like it just counted what a consumer spends for a product and not how much of the product they were buying
It doesn't actually do either. Weights are set every two years based on data from the Consumer Expenditure Survey. Weights are determined by price times quantity for items as a percent of total consumption spending.

When the actual prices are collected and aggregated, the analyst is simply looking for price changes, and the price change would be from the price by pound or price by ounce etc. You have to have a common basis of comparison. It wouldn't make any sense when aggregating to call a 6 oz can and a 20 oz can each as "1 can." Same with items of variable size. "1 steak" or "1 chicken" are not meaningful measures because the price actually depends on the weight.

Quality change is also considered. If cheaper material is used with no price change, that would show as a price increase, if better material is used with no price change that would be a price decrease etc. If previously optional items on a car become standard, the price change of the car takes that into account as well.
 
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EdwardBaiamonte

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
yes, there is obviously inflation. It is liberal policy because they would be thrown out of office en masse if they taxed us openly. The inflation tax should be illegal in a democracy where most people are too ignorant to know they are paying the liberal inflation tax.
 

pinqy

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
yes, there is obviously inflation. It is liberal policy because they would be thrown out of office en masse if they taxed us openly. The inflation tax should be illegal in a democracy where most people are too ignorant to know they are paying the liberal inflation tax.
This should be good...How do you propose preventing sellers from raising prices?
 

EdwardBaiamonte

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
yes, there is obviously inflation. It is liberal policy because they would be thrown out of office en masse if they taxed us openly. The inflation tax should be illegal in a democracy where most people are too ignorant to know they are paying the liberal inflation tax.
This should be good...How do you propose preventing sellers from raising prices?
actually, inflation occurs when the liberals print too much money, not when sellers raise prices.

Sellers cant raise prices if there is not more money with which to pay the higher prices.

Make sense???? Of course not , a liberal is a liberal becuase he lacks the IQ to understand. It is a sad fact.
 
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pinqy

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yes, there is obviously inflation. It is liberal policy because they would be thrown out of office en masse if they taxed us openly. The inflation tax should be illegal in a democracy where most people are too ignorant to know they are paying the liberal inflation tax.
This should be good...How do you propose preventing sellers from raising prices?
actually, inflation occurs when the liberals print too much money, not when sellers raise prices.
You're saying that conservatives never increase the money supply? Or that when they do it's not inflation? Either way, you're wrong.

First, only the Austrian School sticks with Monetary Inflation as the only measure of inflation. The rest of us, conservatives and liberals, accept the definition as a general rise in prices. And while Friedman was right that it is "always and everywhere" a monetary issue, that's in the long run. Short run fluctuations can occur through shocks and changes in Supply/Demand.

Sellers cant raise prices if there is not more money with which to pay the higher prices.
Of course they can. Or are you seriously claiming all changes in price are directly due to changes in the money supply.
 
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Rshermr

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This should be good...How do you propose preventing sellers from raising prices?
actually, inflation occurs when the liberals print too much money, not when sellers raise prices.
You're saying that conservatives never increase the money supply? Or that when they do it's not inflation? Either way, you're wrong.

First, only the Austrian School sticks with Monetary Inflation as the only measure of inflation. The rest of us, conservatives and liberals, accept the definition as a general rise in prices. And while Friedman was right that it is "always and everywhere" a monetary issue, that's in the long run. Short run fluctuations can occur through shocks and changes in Supply/Demand.

Sellers cant raise prices if there is not more money with which to pay the higher prices.
Of course they can. Or are you seriously claiming all changes in price are directly due to changes in the money supply.
You are trying to have a conversation with ed. Ed has been off of his meds for some time now. He simply has a list of quotes and has been taught to copy and paste. If you need to waste some time at some point, follow his quotes and try to vet them. You will see that there is no way to do so, which is why his handlers gave him no links. Ed has a job to simply post dogma, and does as he was told. Makes him feel important.
 

EdwardBaiamonte

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You're saying that conservatives never increase the money supply?
too stupid!!! as population aand GDP grows of course they would increase money supply to prevent deflation.



Or that when they do it's not inflation?
when they print money its only to compenstate for population and economic growth but not inflationary!!


First, only the Austrian School sticks with Monetary Inflation as the only measure of inflation. The rest of us, conservatives and liberals, accept the definition as a general rise in prices.
actually conservatives and libertarians agree that a general rise in the price level is destructive and caused by too much money; liberals avoid the concept altogether since they always want easy money to favor debtors and welfare programs


And while Friedman was right that it is "always and everywhere" a monetary issue, that's in the long run. Short run fluctuations can occur through shocks and changes in Supply/Demand.
so?? who cares about the short run as regards central banking?? It is by definition a long term enterprise

Sellers cant raise prices if there is not more money with which to pay the higher prices.

Of course they can. Or are you seriously claiming all changes in price are directly due to changes in the money supply.
too stupid!! Who's talking about all changes in prices??? I was talking about the ability of all sellers to raise prices which is by definition impossible without more money!! Why do you think sellers dont charge $1,000,000 for everything??
 
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Paulie

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Is it inflationary when $10 that bought a pound of coffee 3 years ago now only buys 12 ounces?

Is it inflationary when a $4/box of cereal is now 30% smaller that when it was 3 years ago?
yes, there is obviously inflation. It is liberal policy because they would be thrown out of office en masse if they taxed us openly. The inflation tax should be illegal in a democracy where most people are too ignorant to know they are paying the liberal inflation tax.
This should be good...How do you propose preventing sellers from raising prices?
Uh, how about stop printing so much fucking money?
 

pinqy

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You're saying that conservatives never increase the money supply?
too stupid!!! as population aand GDP grows of course they would increase money supply to prevent deflation.
And that's inflation. And if you're saying inflation is only from an increase in the money supply, then how can deflation occur without a decrease in the supply?



Or that when they do it's not inflation?
when they print money its only to compenstate for population and economic growth but not inflationary!!
Make up your mind on your definition of inflation. If you're going Austrian, then an increase in the Money supply is inflation.


actually conservatives and libertarians agree that a general rise in the price level is destructive and caused by too much money; liberals avoid the concept altogether since they always want easy money to favor debtors and welfare programs
Liberals are generally less concerned with inflation...they need to ignore it to justify their spending increases. But non-Austrian conservatives also use price increases as a measure of inflation and not just monetary inflation.


Sellers cant raise prices if there is not more money with which to pay the higher prices.
It happens all the time.

Of course they can. Or are you seriously claiming all changes in price are directly due to changes in the money supply.
too stupid!! Who's talking about all changes in prices???
You were. You said sellers can't raise their prices without an increase in money supply...which is nonsense. If you didn't mean individual sellers, you should have chosen your words more precisely.

I was talking about the ability of all sellers to raise prices which is by definition impossible without more money!! Why do you think sellers dont charge $1,000,000 for everything??
Do you mean all sellers at the same time? then you're correct. But inflation doesn't need all sellers to raise all prices for inflation to occur. Energy prices alone can cause inflation and there's no need for a larger money supply for that to occur. And why do I think sellers don't charge a million dollars for everything? Because they've taken basic econ classes and know that would result in their company's failure as their competitors would undercut them massively.
 

EdwardBaiamonte

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Energy prices alone can cause inflation and there's no need for a larger money supply for that to occur.
a little Econ 101 for you, class one, day one, minute one!!

If energy prices go up, then other prices must go down if there is no change in the money supply!!! Hence, increased energy prices can't cause inflation as you thought!! Sorry
 

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