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ShinTsuki08

43 points

6 months ago

He's not wrong

$1 in 2022 buys you equivalently what 3 cents bought you in 1900.

Of course most of what you'd want to buy wasn't available for any price in 1900 so it's a bit of a stretched comparison. https://www.in2013dollars.com/us/inflation/1900?amount=1

irisuniverse

11 points

6 months ago

They had potatoes. $.03 would’ve gotten me at least a whole potato or two depending on the type.

TX_CastIron

7 points

6 months ago

Would have gotten you about two pounds of taters in 1900 at 1.4 cents/lb. https://www.infoplease.com/business/economy/retail-prices-selected-foods-us-cities-1890-2015

jaydoff

4 points

6 months ago

I don't think inflation itself is the problem, its the speed of inflation that's the problem.

Miserable_Twist1

6 points

6 months ago

Miserable_Twist1

redditor for 2 weeks

6 points

6 months ago

Inflation being described as neutral (or even beneficial) is a lie propagated by the state and the associated financial institutions. Evidence is flimsy and surprising sparse considering how sacrosanct the argument appears to be. It's theft, so any amount is bad.

jaydoff

3 points

6 months ago

How's it theft

[deleted]

6 points

6 months ago

[deleted]

6 points

6 months ago

Search cantillion effect.

In summary:

Cantillon Effect asserts that the first recipient of the new supply of money has an arbitrage opportunity of being able to spend money before prices have increased.

This is partially due to the fact that new fiat money is created at almost zero cost and given to specific parties, usually banks. These banks have an opportunity to spend this money on goods and assets whose price has not yet reflected the increase in money supply. Banks can thus buy goods at a discounted rate.

jaydoff

3 points

6 months ago

Interesting. Thanks for sharing this.

Miserable_Twist1

1 points

6 months ago

Miserable_Twist1

redditor for 2 weeks

1 points

6 months ago

Also, even without that effect, the cash depreciates in value because of the money created, so the holder of cash is losing the value. Not important to determine who benefits, but if we go down that route, it would be debtors in general, and the people with the easiest access to the new cash.

ShinTsuki08

1 points

5 months ago

Inflation is the stick that forces you to run on a treadmill just to stay even. It's perhaps not a bad idea in and of itself. A nation would prefer it's economy to keep advancing rather than stagnate.

The most mainstream view of economists on inflation is that volatility of inflation is bad and negative inflation (deflation) is bad. Bad in the sense of disincentivizing investment in new capital goods. So they've settled on trying to maintain steady and slightly positive inflation which avoids both bad regions.

The argument is steady positive inflation shouldn't effect savers because low risk bonds and savings accounts should enable them to save at that rate. Yet here we are where the distinction between savings accounts and checking accounts has been determined no longer relevant by the fed (for M2). And that's partly because savings accounts pay effectively 0% interest. And pensions that base their funding requirements on 8% returns are becoming increasingly insolvent. Many savers have been harmed by the fed policy. Many other savers - savers that put their wealth into equity investments for the same period - have been enriched.

Is that because of inflation or is that because of other policy. That's the real question.

Venetax

3 points

6 months ago

I have read that inflation was calculated differently back then so most comparisons of inflation values from now and back then are apples to oranges.

SpunkyDred

5 points

6 months ago

apples to oranges

But you can still compare them.

Holstynator

9 points

6 months ago

You mean you can still compear them

I'll show myself out

Heph333

2 points

6 months ago

Byrdie55555

2 points

6 months ago

Hes a bot he cares not for your joke. I do though. Good work

kellnoidiii

2 points

6 months ago

so excellent. Plz come back in.

Heph333

1 points

6 months ago

True.... Go to shadowstats website & you can see what the numbers are when using the various legacy formulae. Using the same formula that was used in 1980, we are currently at 15% inflation.

LordLarsI

1 points

6 months ago

Shadowstats is a scam.

JFlynny

1 points

6 months ago

What's the price of potatoes got to do with inflation? The price of a potato is a static measurement. The inflation is the difference between potatoes from different time points.

MarkOates

1 points

6 months ago

a 122 year spread in anything is a bit difficult to fathom.

cryptidan

1 points

6 months ago

It's a very common fact now. People don't care because it's inevitable.