Inflation
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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?
@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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@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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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.
"Now look here, you Baltic gas passer... " - Mik, 6/14/08
The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.
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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.
@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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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.
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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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.
Bidenomics.
Read the "community notes":
"Community Notes has done more for journalism over the past month than every major outlet has over the past decade."
"Now look here, you Baltic gas passer... " - Mik, 6/14/08
The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.
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@George-K he got nailed yesterday, too.
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New season soon!
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Goldman Sachs report says that the chance of recession is down to 15%.
Should President Biden get credit for this? 555
(I think you all know my answer)
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https://www.theatlantic.com/ideas/archive/2023/12/inflation-prices-buying-habits/676191/
If people are so mad about high prices, why do they keep buying so many expensive things?
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People hate inflation, just not enough to spend less: This is one of the central tensions of today’s economy, in which things are going great yet everyone is miserable. ...
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... And in surveys, people say that they are trading down because of cost pressures. But in fact they are spending more than they ever have, even after accounting for higher prices. ... -
Sorry, paywall, and I can’t afford their higher rates.
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https://www.theatlantic.com/ideas/archive/2023/12/inflation-prices-buying-habits/676191/
If people are so mad about high prices, why do they keep buying so many expensive things?
...
People hate inflation, just not enough to spend less: This is one of the central tensions of today’s economy, in which things are going great yet everyone is miserable. ...
.
... And in surveys, people say that they are trading down because of cost pressures. But in fact they are spending more than they ever have, even after accounting for higher prices. ...https://www.theatlantic.com/ideas/archive/2023/12/inflation-prices-buying-habits/676191/
... And in surveys, people say that they are trading down because of cost pressures. But in fact they are spending more than they ever have, even after accounting for higher prices. ...
Everything is going along swimmingly.
"Now look here, you Baltic gas passer... " - Mik, 6/14/08
The saying, "Lite is just one damn thing after another," is a gross understatement. The damn things overlap.
