Greed Inflation

Quote: rxwine

It can only correct rapidly with regulation, because too many products exist that aren't transparent. You want to avoid GMOs, your tomato has to be regulated so as to keep the seller from selling you a GMO tomato. You want to find out an airbag manufacturer has been selling cheap or defective airbags that blow shrapnel into your face, you don't want to wait around until it gets reported through word of mouth. Plus, assume, manufactures have done plenty of coverups hoping something hasn't been noticed, so maybe they don't get sued or can correct it before it gets widely publicized.

So, it's not simple.

Vehicles would be cheaper to manufacture were airbags optional; therefore, they would cost less.

Please don't miss my longer post; it was pretty good.

Quote: Tanko

There is no 'Greedflation'.

The PPI Index measures inflation at the wholesale level. It measures the rate of inflation of goods and services before they reach consumers.

The CPI measures the change in prices paid by the consumer.

If corporations were gouging the consumers, the CPI should be significantly higher than the PPI.

PPI 2020 = .8 ....CPI = 1.4%
PPI 2021 = 9.7....CPI = 7.5%
PPI 2022 = 6.22%....CPI = 6.5%

'Stimulus checks caused the problem'

And what caused the stimulus checks?

Manipulation of free-markets, like the shutting down of businesses.

Quote: Mission146

Vehicles would be cheaper to manufacture were airbags optional; therefore, they would cost less.

Please don't miss my longer post; it was pretty good.

Hah, I don't miss your posts, I just thought it was unnecessary for me to quote the whole thing for my tiny conclusive responses. I just put your name at the top so you know I'm responding to you in particular.

Quote: rxwine

Hah, I don't miss your posts, I just thought it was unnecessary for me to quote the whole thing for my tiny conclusive responses. I just put your name at the top so you know I'm responding to you in particular.

I meant the one today; it's on the bottom of the previous page. It covers the erosion of the middle class.

Quote: Mission146

As I said in my earlier post, the biggest problem is Government interjecting itself and artificially manipulating the market and changing outcomes. If you want corporations to behave sustainably, then there has to be some risk of them actually going under if they get too aggressive and it backfires. The concept of a corporation being, 'Too big to fail,' simply needs to be thrown out the window as harmful and misguided. .

Just offhand when I saw this part... we have laws to address the monopoly of one company (though it's rarely used I believe) and we have laws to address collusion between several companies. But maybe we need something to address situations where say 4 big companies covering 60 percent of the market or some such that can bring down the rest of the economy.

Not sure what though.

more later, as I think of it...

Mission

Of course, my original post wasn't really intended to go beyond the argument over where to place the degree of blame on current inflation. I failed to keep it within that range. Nothing new for me. : )

You shouldn't make the assumption that I'm interested in the same overall goals as you. Of course, I'm against over taxing, for no good reason. But that's where we start to differ. What's a good reason? I know mine is different than yours. I know a more regulated and taxed economy is more expensive than the laissiez-economy, but regardless of its drawbacks it's the one I vote for generally for those reasons of public services. Everything from healthcare support to education and more.

Most countries have elements of both laissez-faire and regulated economies anyway. There's always a battle between the two, often roiled by some event. Like bank crashes. Even then, half the people find some reason the other side had something to do with it.

I'm also against putting all the burden on the middle class. I'm willing to work out compromise solutions for everything, but not for overall goals I don't share.

Interesting though, you argue what has caused the wealth gap IS the government. Arguments I vaguely recall argue the government is keeping it from being even worse. So, exactly the opposite.

Suddenly I was reminded of the Biblical quote, "my thoughts are not your thoughts" Heh, you should be glad of that.

RX, you are valiantly defending your position, I suppose anyone would. But how am I supposed to look at this thread? All of a sudden we are inspecting the role of companies, corporations and Mom and Pop outfits too I guess, when it comes to assessing the blame for inflation. Not when inflation was out of control, but now when it's getting under control. What's on the horizon? the 2024 election

To me this is a naked attempt to shift the blame as it's clearly a big problem for Biden to have this happen on his watch

It often seems to me that someone has handed you the D. Playbook and told you to go around citing the latest thing in play. Why do you go along with that?

Thanks to stimulus checks, Americans accumulated $4.4 trillion in savings by the middle of 2020. Then they went on a two-year $3.6 trillion spending spree, and ended up with $850 million in ready cash and $1 trillion in credit card debt.

'Credit card debt reaches record high in US'

Quote: Tanko

Thanks to stimulus checks, Americans accumulated $4.4 trillion in savings by the middle of 2020. Then they went on a two-year $3.6 trillion spending spree, and ended up with $850 million in ready cash and $1 trillion in credit card debt.

'Credit card debt reaches record high in US'

Who was president in the middle of 2020 again?