Inflation
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Economy in the US is going in the right direction. Inflation is going down, no recession so far, stock market almost at record highs, hundreds of thousands of manufacturing jobs added in last 12 months, etc.
Now, of course, I do not give too much credit to President Biden. But there are others here (wink wink @Horace ) who are probably preparing their "Biden for President - 2024" lawn signs at the great job he has done.
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wrote on 13 Jul 2023, 17:27 last edited by@taiwan_girl said in Inflation:
Inflation is going down,
No, the rate of inflation has decreased. It's not "going down." Prices are still higher.
no recession so far,
So far. Yes.
stock market almost at record highs,
As of today, the S&P 500 is still down about 9% from its peak.
hundreds of thousands of manufacturing jobs added in last 12 months, etc.
I don't know the numbers offhand, but isn't that a reflection of things returning to where they were pre-pandemic? Are those new jobs, or are they simply a return of the workforce to jobs that were already there?
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@taiwan_girl said in Inflation:
Inflation is going down,
No, the rate of inflation has decreased. It's not "going down." Prices are still higher.
no recession so far,
So far. Yes.
stock market almost at record highs,
As of today, the S&P 500 is still down about 9% from its peak.
hundreds of thousands of manufacturing jobs added in last 12 months, etc.
I don't know the numbers offhand, but isn't that a reflection of things returning to where they were pre-pandemic? Are those new jobs, or are they simply a return of the workforce to jobs that were already there?
wrote on 13 Jul 2023, 18:09 last edited by@taiwan_girl said in Inflation:
Inflation is going down,
No, the rate of inflation has decreased. It's not "going down." Prices are still higher.
Have we ever had negative inflation?
Would we want it? Almost certainly not.
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wrote on 13 Jul 2023, 19:09 last edited by
I'm surprised Biden has embraced the term Bidenomics.
Guess everyone wants to be Reagan.
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@taiwan_girl said in Inflation:
Inflation is going down,
No, the rate of inflation has decreased. It's not "going down." Prices are still higher.
Have we ever had negative inflation?
Would we want it? Almost certainly not.
wrote on 13 Jul 2023, 20:20 last edited by@Doctor-Phibes said in Inflation:
@taiwan_girl said in Inflation:
Inflation is going down,
No, the rate of inflation has decreased. It's not "going down." Prices are still higher.
Have we ever had negative inflation?
Would we want it? Almost certainly not.
Yes.
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@taiwan_girl said in Inflation:
Inflation is going down,
No, the rate of inflation has decreased. It's not "going down." Prices are still higher.
no recession so far,
So far. Yes.
stock market almost at record highs,
As of today, the S&P 500 is still down about 9% from its peak.
hundreds of thousands of manufacturing jobs added in last 12 months, etc.
I don't know the numbers offhand, but isn't that a reflection of things returning to where they were pre-pandemic? Are those new jobs, or are they simply a return of the workforce to jobs that were already there?
wrote on 13 Jul 2023, 20:22 last edited by@taiwan_girl said in Inflation:
Inflation is going down,
No, the rate of inflation has decreased. It's not "going down." Prices are still higher.
no recession so far,
So far. Yes.
stock market almost at record highs,
As of today, the S&P 500 is still down about 9% from its peak.
hundreds of thousands of manufacturing jobs added in last 12 months, etc.
I don't know the numbers offhand, but isn't that a reflection of things returning to where they were pre-pandemic? Are those new jobs, or are they simply a return of the workforce to jobs that were already there?
I think there were more jobs, pre-pandemic. And I read the other day there are 100,000,000 Americans in the working age group that are not working or are underemployed.
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wrote on 14 Jul 2023, 01:15 last edited by
@George-K , you are correct, there is currently no deflation. Not sure if deflation is good, but 0% inflation maybe would be. LOL
But definitely, inflation is trending downward and I expect it to flatten in the coming months at 2% or less.
image url)https://graphics.axios.com/hermesv2/batches/2023-07-12-1211-annual-change-in/2023-07-12-1211-annual-change-in-chicago/fallbacks/2023-07-12-1211-annual-change-in-chicago-fallback.png(Fun fact, i read somewhere that up until about 150-200 years ago, there was (almost) no inflation. For example, things in 1600 cost the same amount as in 1200. This is based on UK where they have some records of the cost of things over time.)
Below is the manufacturing jobs graph. Looks like it is return to where it was pre pandemic. But, at least it is going in the correct direction.
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wrote on 14 Jul 2023, 01:23 last edited by
The government has, traditionally been "OK" with an inflation rate of 2-3%, iirc. However, that "OK" is predicated upon a concurrent rise in income.
That has not happened. I recall seeing a statistic that, in actual income, the average family is bringing home about $6K a year less.
Now, take that $500 a month decrease in real income, and combine it with a mortgage rate that has climbed from 3% to 7%, and a lot of folks are going to be very unhappy.
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The government has, traditionally been "OK" with an inflation rate of 2-3%, iirc. However, that "OK" is predicated upon a concurrent rise in income.
That has not happened. I recall seeing a statistic that, in actual income, the average family is bringing home about $6K a year less.
Now, take that $500 a month decrease in real income, and combine it with a mortgage rate that has climbed from 3% to 7%, and a lot of folks are going to be very unhappy.
wrote on 14 Jul 2023, 01:32 last edited by@George-K you always make me think!!!!
Unfortunately I was unable to find data that includes today.
Here is one graph that shows average income over the past 50 years
Could not get the picture to work, so a link to average hour salary
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wrote on 14 Jul 2023, 01:38 last edited by
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wrote on 14 Jul 2023, 02:26 last edited by
We need inflation to a degree. We'll never pay off the debt otherwise.
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The government has, traditionally been "OK" with an inflation rate of 2-3%, iirc. However, that "OK" is predicated upon a concurrent rise in income.
That has not happened. I recall seeing a statistic that, in actual income, the average family is bringing home about $6K a year less.
Now, take that $500 a month decrease in real income, and combine it with a mortgage rate that has climbed from 3% to 7%, and a lot of folks are going to be very unhappy.
wrote on 14 Jul 2023, 06:25 last edited byThe government has, traditionally been "OK" with an inflation rate of 2-3%, iirc. However, that "OK" is predicated upon a concurrent rise in income.
That has not happened. I recall seeing a statistic that, in actual income, the average family is bringing home about $6K a year less.
Now, take that $500 a month decrease in real income, and combine it with a mortgage rate that has climbed from 3% to 7%, and a lot of folks are going to be very unhappy.
Bidenomics.
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The government has, traditionally been "OK" with an inflation rate of 2-3%, iirc. However, that "OK" is predicated upon a concurrent rise in income.
That has not happened. I recall seeing a statistic that, in actual income, the average family is bringing home about $6K a year less.
Now, take that $500 a month decrease in real income, and combine it with a mortgage rate that has climbed from 3% to 7%, and a lot of folks are going to be very unhappy.
Bidenomics.
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wrote on 17 Jul 2023, 17:22 last edited by
@George-K he got nailed yesterday, too.
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wrote on 18 Jul 2023, 00:56 last edited by
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wrote on 18 Jul 2023, 01:00 last edited by
@taiwan_girl said in Inflation:
To his defense, when he said "before the pandemic" he was talking about 1933, which WAS before the pandemic.
He probably remembers it too!
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@George-K he got nailed yesterday, too.
wrote on 19 Jul 2023, 16:45 last edited by -
wrote on 19 Jul 2023, 16:47 last edited by
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wrote on 19 Jul 2023, 17:55 last edited by
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wrote on 19 Jul 2023, 18:02 last edited by
New season soon!
