How is "Transitory" Inflation Going? | Economics Explained 

I have a question. In Modern Monetary Theory money is printed to fund education, health care but it lead to hyperinflation. It's reduce through tax , is it effective way to control inflation without bond market ? Does it effect it economical growth when tax is high? Any why country like Venezuela can solve it's problem by put High tax to reduce hyperinflation? Could you Please answer my question

Disable macros before you open those spreadsheets

Sailing is SO MUCH FUN I'm not going to win though :'(

Here is a point for those outside of the US that wouldn't be aware of this. The extra printing was in part a response to a national cash shortage, in particular coins. No joke, mid last year you would struggle to find anywhere that would take cash that wasn't exact, as they had no change to give. This is easily overlooked if you are not on the ground, and is some important context that even economics explained missed.

Txt is the

Have you tried finding different places to rent? Can reset the ever rising cost of rent gimmick. IE if people aren't moving out, it just means their rent is too low.

@@stapleman007 move where? Property Mangement groups by up housing and control rent.

@@stapleman007 It could mean they're paying what they can afford if they live in a rent-stabilized building which is subjected to a gradual increase. Once they move out, the apartment is now market value. There is no such thing as rent too low as far as I know in a modern 21st-century apartment unless you're off-grid.

Yeah rent and utilities take up 75% of my monthly income and I work full time making over double the minimum wage. The cost of living has sky rocketed and nobody really is getting paid enough to keep up with it.

Rents go up because there's a lack of housing chiefly at the bottom end the only way of dealing with it is from government action with social housing for the poorest and cooperative housing at the next leg up. Currently with the big corporate tax cut from a few years back you've seen investment entities plow money into realestate reducing the housing stock further The problem is structural and needs a long term government solution that an uncontrolled private sector won't provide what's worse is any attempt to do so will have the same private sector screaming

great reset

Changing definitions to suit Their needs seems to be the current trick.

"There's nothing more permanent than a temporary government program." -some smart person

This is the 1st time I've seen the word transitory, don't plan on using it still don't know what it means, haven't looked it up, might, probably, America🇺🇲🇺🇸

I think that's part of the point. They've changed a few terms recently. "Vaccinated" "Anti Vax" etc. Etc.

Sssshhhhhh

Go watch Clarke and dawe videos on quantitative easing "I'm an economist and under any number of circumstances were my answers could vary so don't quote me on this"

Why do we have money.. and how has the way we've needed it changed since it's founding

Here I found the best comment, which actually explains it all - Bravo !

Your numbers are only profitable *if* and only *if* your currency is worth the same. If your currency is being devalued. . .your "profit" numbers are actually weaker.

I have had a dozen or so of my suppliers increase prices by 10% 3-4 times since the pandemic started. factor in exchange rate fluctuations and we are up almost 50% for some products.

Yep. This is what is happening.

@@life_of_riley88 According to our quarterly bonus, our profits are much higher than they've ever been.

If the jacked up prices are still being accepted by customers then the reason why the prices are higher is almost irrelevant, it is still fundamentally part of the inflationary environment. If the demand wasn't there, are the additional money in the system wasn't there, those 25% increases would not be accepted

Fertiliser prices in Europe at least have had a massive price increase. Its going to be 600 euros a ton this spring. Its a very energy intensive industry and natural gas prices are at record levels. Power cuts are a realistic possibility if Russia does not increase supply. Food prices will be higher and yields reduced. Green environmental policies will further reduce yields driving farmers out of production and discouraging investment in fossil fuels

😲

I have Cancer from using Roundup and am in a Lawsuit with Monsanto/Bayer .. we need to get rid of Roundup as it's nothing but a Poison

January 18th 2022 is the date set for the stock market collapse. Get those shorts in...

So y'all can look forward to wormy produce but at least it'll be GREEN!😜

essential paying people to do their homework.. well one of those people

Companies aren't raising prices because of inflation but to raise profits and hope you'll fall for it.

This isnt true at all, producer price inflation is far higher than consumer price inflation.

@@ThePhiphler it is true. Walmart admitted they are using inflation as an excuse to raise prices on goods not impacted by inflation and supply problems. Same with meat industry, their profit margins are way higher while paying farmers even less. Monopolies in America are taking advantage of this situation.

this is absolutely true, and another important thing to note is more than 80% of the stimulus went to corporations. prices are still increasing while wages are not. the media is blaming it all on the individual getting a $1200 check, the entire system is rigged.

@@shayan_idk Read the actual numbers. The prices corporations pay has been increasing far faster than the consumer prices. Corporations have been eating the higher prices for the 2 years now. Dont just blithely repeat the talking points of your favourite politician, look at the facts

there's no specific explanation of how the CPI is calculated. they made a lot of substantial changes to the CPI in 1998 due to the recommendations of the boskin commission - which told the bureau of labor statistics that the CPI was "over stating inflation". They then introduced a lot of new formulas, weighting, and substitution for items in the CPI. That is the same CPI we use today

The issue is that the CPI has always been fudged because the rate of inflation correlates with the interest to service the debt & payments to SS recipients.

@@bisratbeyene3980 well food is pretty important

@@bisratbeyene3980 US and Australian CPI both include food prices. Who's not including it?

@@bisratbeyene3980 that's wrong. Food and energy is excluded in the measure called "core inflation" (because they are much more volatile than most goods, ex. Oil prices where negative in april 2020, then 1 year later they were over 60$ per barrel. In the long term, those fluctuations average out, but in the short term (over a few years), it makes sense to measure both overall inflation (including food and energy) and core inflation (excluding food and energy).

You may be on the wrong channel then mate.

@@ddandymann social sciences are not science

@@tamberlame27 You mean they're not natural sciences, hence the name social science.

Good catch, enjoy Sydney sailing mate

Not to mention long sleeves when working on a lathe. There was a video last year of a russian dude that got sucked into a lathe when his sleeve caught on one of the jaws, his body parts were flung across the shop floor and everything.

I'm sure that was shown as humor

Pareto's Principle: originally 20% of Italian households controlled 80% of the land. Can be extended to 20% of airline companies control 80% of the market, 20% of airports handle 80% of the traffic, 20% of football players score 80% of touchdowns, etc. Trying to alter Pareto's principle to make every company the same is unnatural and will fail in the long run.

@@whatthree16 That makes absolutely no sense.

This is exactly why even if we are threatened with inflation we must demand better pay from employers and support unionization.

@@FlatKitten Unions are corrupt and useless.

@@neeljavia2965 you have no idea what you are even talking about.

I may wrong but qe and low interests began in 2008....but no inflation in 2008 as assets and real estate prices fell deeply along with 2 recessions

Isn't that exactly what the EU CB did? Massive QE and a 0% interest rate? And Greece is competitive and stable because it's in the EU. The rich EU countries have to bail it out and there are plenty incentives for EU citizens to move to Greece for possibly high paying tech jobs with low cost of living and just a beautiful landscape. Politically, Greece is also far from turmoil or anything really. I mean, they still have issues and all but to call it unstable is just... wrong.

I will tell you why they set up some tech jobs in Greece, low wages for skilled labor, skilled and cheap labor when compared to countries like France and Germany. And right now the current government is in the process of destroying the few labor protections that survived the economic crisis. So they are trying to do what the proto romans did when they conquered the city states of the region of Greece, get highly educated slaves.

It's well known that Greece like many other countries with similar economic problems is saddled with high government employment followed by early retirement with extremely high retirement benefits. This causes a spiral of government obligations greatly exceeding taxable income which results in fewer government provided goods and services which then causes poor economic and social conditions especially regarding the formation and nurturing of new small businesses(which puts greater pressure on the government to do more) which in turn causes flight of its newly entering workforce who are able to find better opportunities only a few hundred miles away in another country. There is no likely solution for all countries like Greece(and Spain plus others) without literally declaring a national bankruptcy defaulting on its excessive obligations and rebuilding. It's too far in the hole it's dug to wait for all its retirees to die before starting over.

Where would the US rank on the leaderboard?

Holding money creates negative externalities (economic instability).

There is very little that's "universally" accepted, especially in economics, but the idea that a low inflation rate is a good thing is very widely accepted. If money retains its value over time (or worse, it gets more valuable over time), people are less likely to spend it as they're accumulating (or at least not losing) wealth by holding onto it. That means there is less goods and services being purchased which in turn means someone else isn't making as much meaning they're purchasing less and so on and so on, eventually lowering the purchasing power of everyone. Economies don't run on money. They run on the _flow_ of money. That's one of the biggest problems in the US (and elsewhere) even before the pandemic - pushing more and more money to the top as has been the goal of American economic policy since at least Reagan means less and less of it gets used to buy goods and services - Jeff Bezos only needs so many superyachts even if he could technically afford to buy more. We end up with money just being parked in safe investments, offshore accounts and other economic locations where it accumulates interest but doesn't actually do anything for the rest of the economy. But ignoring the wealth gap issues, even among the money that's still available to the economy, the _flow_ is the important part. Having a positive inflation rate encourages that flow. Of course if that positive inflation rate gets too high you end up in a situation where people effectively need to spend money almost before they even have it in order to stay ahead of the devaluation. So its a pretty delicate balancing act - too low and the economy stalls, too high and the economy collapses. That said, 6% is nowhere near "too high". I mean obviously people prefer lower, but its hardly an end times scenario. Even hitting 15-20% is only "bad" and not "doomed". Its happened before and no, it wasn't fun, but it didn't destroy the country either. There is of course a cutoff. I'm not sure where that point lies. The stories we hear from the worst cases of hyperinflation tend to be on the order of thousands of percent per _day,_ and we're talking a couple dozen percent per _year_ in our worst-case scenarios. But such a point does exist, even in the US. We know from history that its somewhere over 20%, but beyond that its pure guessing. Lets hope it continues to just be guessing!

a lot of what is in this vid is wrong. spreading a few lies among somme truth is much more effective when fooling people.

@@eurobrowarriormonk7182 Care to elaborate? Or just going to make an accusation without evidence? Certainly economics is complicated and even when things aren't "wrong" you can often find some economist somewhere who disagrees, but that's very different than explicitly lying as you've suggested. Making such an accusation without something to back it up mostly just makes you sound reactive, which in the modern world is frequently associated with being misinformed or even uninformed - "it doesn't fit my biases therefore its a lie!" So, please prove me wrong. It would be a nice change of pace among accusatory RU-vid comments.

I found that video pretty cheap. He also made some unfounded claims, like his sp500 claims.

@@jc.1191 which video man? There were several with the M1 before a lot of people caught the fine print. Lots of media outlets were using it at the start too. It was a bad mistake but one a lot of people made sadly.

@@OopsFailedArt You're right there's a bunch. And I don't remember the channel name. It was a Russian sounding guy iirc.

_"Milk has relatively sticky prices..."_ I see what you did there.

I don't think the "reserve currency" just reduces implications from inflation - if anything it means the effects of inflation will be felt far and wide beyond the US economy since everyone else is also holding US dollars in their banks.

@@agent9184 I think it's likely if inflation in usd was bad enough other countries would sell their fed notes back to the us fed, making inflation inside the us go fully out of control

I would rather see a new currency altogether that all countries adapts as the de facto global currency rather than the us dollar, sure, It will be hard to get even the majority of countries to agree but I still think that it will be far easier than if we would all adapt the US Dollar.

@@Tazemi. Keynes be like: heyyyy

@@Tazemi. Such a thing already exists - look up the IMF Special Drawing Rights. Unfortunately it's only used as a backup.

Meanwhile, cost of goods rise reducing overall gains.

You dont need a video, i'm just gonna give you a short summary of that topic: Europe is basically fucked

@@brianjanssens8020 I'm no legit, degreed economist, but the whole world seems to be headed for a crash. (Being fucked) I have not seen a nation that is not dealing with major issues like Europe, US, China, etc, and even if there is a healthy country, it can't escape the globalization issue. We are all in this together. Can someone tell me why I'm wrong? I am getting worried and would REALLY like to know why I'm wrong.

@@noahway13 America is actually in a much better spot than most of the world. Americas industrial infrastructure was already quite robust and was getting much better pre-pandemic. Only something like 10% of our economy is import reliant. A troublesome number but not something we can't live without (as opposed to the UKs 50% for comparison) and what we do need to outsource we can do with Mexico through NAFTA and their workforce is perfectly suited for exporting industry. As for our demographics most of the world's boomers were content not having children except for America's who had a major spike compared to other countries (the millenials) this allows our workforce to bolster the retiring boomers. It won't be easy but america is in a better spot to do it than Europe and especially China (they're both probably fucked though). Because of this the only real safe haven for capital will end up being the US, so investments should and probably will flee places like China. If the US can drag itself through a few more hardships relatively intact it'll be sitting pretty, or well sitting relatively pretty on the world stage

@@Wjv-ev4ez Wow. You should do a video. Seriously.

@@noahway13 Peter Zeihan has written a lot about this. I've basically just ripped off his words for this comment. I don't agree with 100% of what he says (too blackpilled for me lol) but hes still a great resource. Thanks

And then they'll probably award the trip to a friend.

It’s an average of everything

Have you tried eating 20-30% less? Now your bill is the same as it was, inflation solved.

@@madcow3417 Exactly. It's not like we Americans are so thin that we can't risk losing a single calorie.

@@madcow3417 Obesity: solved.

@@madcow3417 I laughed, but we have been eating less.

Some of us "common people" actually like inflation because our home loans are getting cheaper and our salaries are tied by contract to cost of living

@@parkmannate4154 Inflation is one of the most destructive societal forces available. Those ‘common folks’ that like inflation is merely short sightedness in action. Smoking, boy I like the immediate pleasures, is akin to this thinking in action.

@@bcshu2 Spiraling hyperinflation sure. But inflation in general, nah. Having the economy grow 2-4% a year is broadly a good thing. And hard stopping inflation puts millions out of work; when Vockler threw the breaks on in the early 80s in the US it pushed Unemployment up over 10%. You really think that's better than the 3-4% underlying inflation we're at right now?

@@parkmannate4154 changing goalposts

@@bcshu2 Were you not arguing "inflation is one of the worst societal ills" or not?

are you live in osaka japan? what happen in there?

We you from?

My local economy has a been a wreck since the 90s, due to a loss of high paying jobs. Thankfully COVID barely had any impact on the economic base of my home town and the surrounding areas, since we don't rely on service jobs.

@@user-gc1hg9sp9k I know japan has been stagnent since the 90s outside of there entertainment sector. With osaka being one of the 2 big cities to lead the entertainment sector It shouldnt have been as bad as the rest of japan with there manufacturing stagnation and housing issues.

@@Newbmann The entertainment industry is surprisingly small. Video games have become the biggest sector in the industry and the entire global gaming industry is worth less than tomatoes alone. There are over 80 individual companies that are bigger than the entire global video game industry. I doubt a small part of that is enough to save the economy of a metropolis.

Its not CPI, its CPLies... This is the prob of excessive money printing issue that caused by monetary that not backed by gold

That's the point.

the fed doesn't release the CPI - the bureau of labor statistics does - which the fed then uses. they made a lot of substantial changes to the CPI in 1998 due to the recommendations of the boskin commission - which told them that the CPI was "over stating inflation". They introduced a lot of new formulas, and weighting, and substitution for items in the CPI.

Hopefully the birth rate falls lower

Lots of parents have not rejoined the work force because child care is in short supply and inconsistent considering the state of the pandemic. I chose to go back to school and parent full time. Its that or give my entire wage to child care and still end up getting fired when I inevitably miss work because the day care is closed due to an outbreak. Same can easily apply to school age children.

@@raghuvenkatesan6792 not in the west.

@@TheMagicJIZZ hopefully it does bc feminism has failed

And several times that hundreds of thousands of dead are now disabled due to surviving COVID and long COVID. Which, depending on their skills, locks them out of full employment into part-time, underemployed, and disability.

No. QE is not money printing. Check with Lacy Hunt or Jeff Snider or Steven Van Metre.

@@dpie4859 it’s not money printing but it puts money into peoples hands...so what’s the difference? I too listened to those 3 idiots and watched everything go up

@@dpie4859 It isn’t money printing if u believe the fed balance sheet will go back down into the real economy . Good luck with that …. There is no way over 7 trillions of treasuries and MBS will be sale back anytime soon . So if the government always borrowed money without ever have to pay back the fed (holding treasuries ) , what you think it means ? -> printing free money ….

That's what EE's second graph showed - it was corrected to include savings. No giant jump. Just a scary steep mountain shape.

@@dpie4859 That kind of logic is like claiming you aren't spending money if you use a credit card instead of cash. QE means money printing will have to be done later on down line.

Fractional reserve banking also increases the effective money supply, but that only happens when other banks lend money. Yes, the Fed can limit this with reserve requirements, but even so, there are two distinct sources of new money supply, so even the increase in money stock is not as simple as just blaming the Fed, although that certainly is the source of our current money surplus.

@@sprinkle61 the point is that CPI is not inflation...

it was not that funny, we all know economists are stupid people in general

@@The_Angry_BeEconomist The CPI is actual the consumer price lie, it excludes goods that they define as high volatility, such as food and energy. George Orwell said, "There are some ideas so absurd that only an intellectual could believe them." You're correct, the CPI is not inflation, it measures the level of inflation in an economy

@@mattja52 CPI does nothing to measure inflation in an economy.

This ☝🏾

I feel like what you’ve described is what people have been calling “economic justice” or “build back better” or something equally stupid and transparently a wealth transfer that allows the sociopaths in power to really kick things up a notch in terms of creating a neo-feudalist economy but on a global scale. I trust them though. They definitely seem like the good guys. CNN told me so

Oligarchy capitalism?

@@imnotracistbut-9559 And yet when the wealth transfer is workers demanding more pay, it is a crisis that could topple the economy. Your slip is showing.

@@liamhodgson Can you explain what tenets of Capitalism support a government taxing citizens, so it can direct funds to its corporate supporters? There are only two modern economic systems that support redistribution of wealth, Communism and Socialism. Even these are not supposed to redistribute unequally, but in practice they do. If anything, what we are seeing is a neo-feudalism, where the 1% (modern day aristocracy) own everything and rent things to the peasants as long as they can generate a return profit. The only difference is instead of paying the aristocracy in goods produced we pay in fiat currency.

The lie perpetuates

I guess all the FIRE people have contributed to the overinflated stock market. Once stocks crash, many of them will have to rejoin the workforce.

@@Georgije2 but they won't so....unless you count this minor hilarious pebble of a speed bump. If anything it will get worse, just wait til earnings Q1.

The problem with FIRE is that the vast majority of people end up losing money in the stock market. Having enough capital to implement FIRE doesn't mean you can actually do it, because good investors are rare. Also, every extended stock market boom in history has led to everyone trying to live off the free money from the market, until the bubble pops and everyone swears off stocks for the next decade.

@@ruisen2000 Just use an index tracker.

Yup. TBH ever since FDR broke the gold standard, anyone who would buy government bonds is beyond me. The government clearly shows an intention of increasing its spending and not paying any of its debts back, so any financial trust in the government is as dumb as a bank opening a loan to a drug/gambling addict.

@@DaveSmith-cp5kj That's.. not how bonds work though. Barring the government completely collapsing, they will _always_ pay your bond out. Ensuring that bonds are a guaranteed (if low-interest) investment is of utmost importance to them and they'll borrow the money from elsewhere to pay you back if they have to. Paying back their bonds is one of the top priorities. That said, interest rate does have to be larger than inflation for people to want to buy bonds in the first place, but that's actually a good thing for the government. Setting the bond interest rate gives the fed another lever to help steer the economy, and the more levers that are available the better chance they'll have of averting outright catastrophe when things start going sour. Its one of the main reasons why the gold standard had to be abandoned - it provided almost no levers to correct the economy (gold doesn't just magically appear when you need it) and allowed the economy to fluctuate wildly and often disastrously and there was nothing anybody could do about it except hope the miners were lucky that year.

@@altrag There has never been a single case in history where the Fed has avoided an economic catastrophe. In fact, every single economic downturn has been attributed primarily due to the feds actions leading to unintended consequences when they lose the "pulse" on the economy. Sure the gold standard was abandoned because there weren't any levers... the problem is the lever the government wanted was one to buy things they could not afford. I mean that's like someone saying I could always be rich if only I could order money whenever I wanted.

@@DaveSmith-cp5kj "There has never been a single case in history where the Fed has avoided an economic catastrophe. " 2020 called. Covid lockdowns economic catastrophe would like a word. Reversed by feds decisions.

@@ZeHydra Delayed, but we have yet to see what the long-term impact of the massive relief efforts of 2020. I dearly hope not, but we could definitely still see massive inflation and a secondary economic crisis from this.

Yep. All the renters will be fed up when they are screwed every which way.

@@ozzy5146 Actually, this is a problem caused by democracy. Democracy leads to short termism and there is no incentive to pursue long term sustainable policies because by that time the ball has been passed on to soneone else and its no longer the previous guys problem.

@@freedomwatch3991 No joke Herodotus makes this argument from the perspective of Darius the great and the 7 families of Persia recounting the tale of deciding on what government to choose after the outing of Smurdus (the magian) The idea that people will only work for the short term in democracy is something ancients seem to have been aware of.

@@SisyphusJP Plato and Aristotle detested democracy.

@@SisyphusJP The funny part is that America never has been a democracy and it isn't even mentioned once in the constitution. Democracy is entirely a political concept gas lit by the media as being the mechanism of our country when it isn't. Voting isn't even a right in the Constitution, and it was done that way on purpose. States originally required one to be independent (own land, pay taxes) before you could vote as impoverished people are easy to bribe with free things by politiicans.

Exactly,. 100 percent spot on and this the painful fact that nobody wants to address.. For the last several decades the fed has always been able to print its way out of trouble during an economic downturn.. But now it's all coming to a head.. The fed is going to have to raise rates to combat inflation and let the economy and the markets implode.. The can has been kicked down the road for too long and now the day of reckoning has come, for the fed can't fight inflation and support the economy at the same time..

@@QueensNativeNYC When do you think everything will collapse, I want to prepare?

I don't know exactly when it will all collapse.. Could they keep everything afloat for another year or two, Maybe but I wouldn't count on that.. It would be wise to have a backup plan, first and foremost is to get at least a 6 month supply of food and water should things get really bad.. This is absolutely the most crucial thing.. Second is a weapon to protect you and your family and your property should things really get bad.. If you have any extra cash to buy gold or silver that would be a great way to preserve your wealth.. I'm not saying cash out everything you own and buy gold or though that may not be a bad idea.. I would say say the time is getting close and the sooner you start preparing the better.. The entire globe is in uncharted territory due to the pandemic with record debt levels never seen before, it only takes a little bit of reasoning and common sense to realize this is not going to end well.. But most are blind to see that and therefore just assume everything will go on as business as usual..

@@QueensNativeNYC most people are in the “system” with mortgages, pensions etc. So no matter how much data you show them that this is all one big Ponzi scheme they will not listen. Because they have a interest in seeing the system continue. We will not get some nice warning like gold going up ten percent a year. It will be a VIOLENT explosion in the gold price and if you don’t have any food and metals you will be fucked.

@@QueensNativeNYC Calm down . Yes inflation will persist but there is like 1% chance the US suffer hyperinflation or very high inflation …. The US have massive ressources and strong potential of producing stuff ( like they did in the 1940-50). If all ressources prices goes too high , old jobs like manufacturing and farming will come back because it will be profitable again to actually produce stuff in the 🇺🇸… Inflation is just the currency value going down . So as your purchasing power diminished it just need you actually have to works to buy basic goods .

Until grandma and grandpa have to work again because their 401k started to turn red for over a year and the money ran out.

@@Mrdysfuntional100 Not really. By raising the velocity of money company revenue would increase substantially. This would contribute to raised stocks prices. Even if it doesn't, as things stand now plenty of older people have to work anyway. Now their jobs would combine with their social security benefits which would lead to those working needing to work less than they already need too anyway.

That would be a problem when there is not production.

@@neeljavia2965 In full employment everyone is working. By definition there must be production. Or at least some other kind of useful labor. This would actually raise supply substantially which would act to slow an increase in prices which would not just mean people are getting funny money but in real terms are getting richer.

@@SomeGuy1117 That only happens in theory. Not in real life. Full employment doesn't guarantee production. Especially in this age of automation and ai where full employment means unproductive labour.

Well, eurozone buyers still have to compete for the same commodities. Cost-push inflation, as opposed to demand-pull inflation, affects all currencies more or less equally.

The retirees with enough cash saved up to be significantly affected by inflation probably are getting richer off rising property prices.

That's interesting to think about . however it takes money to make money. Those Granny hollaback gurlz can just buy beetkoinz and double retire next bull run.

A lot of retirees have their money in the stock market which has outpaced inflation

Their value of income will decrease yes. But retirees have a corpus of fund which is diversified across investments. The stock market experiencing a bull run means their corpus of retirement grew faster than they expected, even faster than inflation and fast enough that they can finally retire. Meanwhile middle aged people in their 30s and 40s, who don't have a money corpus, whose salary hasn't increased are most affected by this inflation.

I tried to get my retired mother to take he money out of saving and into the stock market (and failed), I do believe it is an issue as she is getting negative real interest rates.

The 1970s was STAGFLATION. I lived through it as an adolescent when my father's employment situation became tentative at best (layoffs galore) combined with inflation (and toss in gas rationing into the mix). In stagflation, you can add middle-class people to the already struggling category of "those with the least capacity to do so." It was far worse than any experience of normal inflation can prepare you to imagine. Sadly, attempts to "pull up" the bottom tier of earners by increasing minimum wage merely increases suffering for all but the top tier (and may even have helped those amass more wealth by the stored value of being able to afford real assets).

@@gtw4546 you're right, let's make an UBI

@@user-ls4cs1wd2w I'm sceptical of UBI. Experiments began in the 1970s. Results vary but funding seems to be the major problem. If it's tied to GDP as I've heard some propose, what happens in a contracting economy when GDP goes down? As the old saying goes, "there is no free lunch." There is always a cost, however hidden. I suspect young people suffer most from the GOOD intentions of previous generations because each tries to solve known problems and don't see the hidden evils imbedded in their solutions.

@@gtw4546 Although there are concerns over funding, it could be more than compensated by lower regulations and bureaucracy across the labour market, don't you think? Also, there's things like the military budget that could be reasonably lowered. The amount needs not be large, even a tiny UBI can give workers more power without the distortions of things like the minimum wage

@@user-ls4cs1wd2w Again, I'm skeptical. Minimum wage was originally proposed as a small baseline for unskilled work. Now people want the minimum to be "livable wages" even when the only skill set is provided by employer training. All MW did was make people with skills demand higher wages, causing employers to bump up everyone and increase prices to cover the extra labor costs. It's a vicious cycle of boosting the minimum, adjusting everyone else, then increasing prices to cover creating inflation, and REPEAT. I think the same thing happened with social security to eliviate elder care burden on their children. People thought the government would be investing the money they paid into the system, but it turned into a slush fund and has become a big Ponzi scheme. I'd never count on a reduction in government waste or cutting other programs to fund UBI. UBI sounds like a nice idea. I WISH it could work. But it's like a fairy tale about a magic purse that never runs out of money - nice to dream about but completely unrealistic because of human nature.

Ssssh that's in the fine print

Oh yeah, I would be sent right to one of their camps.

@@lamer5799 Yet another American who believes Joe Rogan and Fox News are good sources. 1) the "camps" were for those coming into the country only 2) we don't need them anymore 3) we only wanted them as we tried hotels with predictable results 4) Florida has a similar population but **60 times** the deaths 5) Canada had similar arrangements but they aren't tin foil flavour of the month.

@@ChineseKiwi Comparing similar populations for a virus makes no sense unless the population densities are comparable. Which is certainly not the case when comparing Florida (66k Square miles) to Australia (7.7mil square miles)

@@Echidna23Gaming yes, which is why you compare urban areas and not the average across the entire area as 95%+ of Australia is not inhabited by anyone ;) Enter 20c to try again.

YES

Erdogan being an absolute buffoon.

That's of course not all of it, but pretty much the core of the situation.

Yes. It's called Ratchet Effect. In global scale most of the economic processes very difficult to reverse.

There's no certain answer to that. There are a number of reasons why prices would stay high, but there are also reasons why prices may decline. What actually happens will likely depend on numerous factors, the specifics and the duration at the higher level. To anyone who claims that prices always rise on everything, I would point out the biggest example that touches everyone today in practically everything they do... computing technology. Since very early, there has been what is known as Moore's Law since 1965 which states that computing power doubles every 2 years, essentially becoming only half as expensive every 2 years for the same capability. And, that's brand new stuff, not depreciation. Is why your smartphone packs vastly more computing power than what was used to design and calculate space travel in the 1960's.