U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-06-2018, 08:32 AM
 
8,301 posts, read 3,463,333 times
Reputation: 1588

Advertisements

Quote:
Originally Posted by Larry Caldwell View Post
All you need for falling prices is rapidly increasing productivity, which we have. Inflation is an artifact of the monetary system and federal policy, not an underlying necessity.

It's interesting you would mention 1873, which was only a depression in the stock market. The GNP grew 7% during that "depression" with attendant falling prices. Almost everyone ended up better off. The stock market is subject to wide fluctuations triggered by the inability to service debt. It's not a foregone conclusion that falling stock prices will have an adverse affect on the economy. Rapid deflation would compensate for falling investments. The only ones who would be hurt by deflation would be debtors, who would be stuck repaying loans with rarer and more valuable currency.
Increases in productivity can only do so much. The necessities would need to continue with gradual price reduction over a long time frame. Many necessities are more of a distribution problem than production problem.

As you note, borrowing in a deflationary environment is discouraging. As is more simple spending, because items will be cheaper tomorrow or next year. This encourages cash hoarding and discourages transactions/commerce.

https://www.investopedia.com/article...ad-economy.asp

https://www.investopedia.com/article...ad-economy.asp
Reply With Quote Quick reply to this message

 
Old 01-06-2018, 09:57 AM
 
7,020 posts, read 6,648,933 times
Reputation: 5294
Quote:
Originally Posted by hitpausebutton2 View Post
With things going up and up, but not checks. What is the purpose of inflating the market? And yes i did do some reading and cost-push is the cause of over pricing?

Why is it hard to keep the prices in check while increasing wages?
Cost-push inflation is due to wage increases that cause businesses to raise prices to cover higher labor costs, which leads to demand for still higher wages (the wage-price spiral)

Read more: What is inflation? definition and meaning - BusinessDictionary.com
They have to rig the CPI to keep down wages since it has no effect on the 40 percent of employee compensation (fringe benefits) that rise due to real world inflation. The latter keeps growing as a proportion of total compensation.
Reply With Quote Quick reply to this message
 
Old 01-06-2018, 09:58 AM
 
64,752 posts, read 66,247,630 times
Reputation: 43132
nonsense ! for all the reasons i mentioned above
Reply With Quote Quick reply to this message
 
Old 01-06-2018, 10:25 AM
 
7,020 posts, read 6,648,933 times
Reputation: 5294
CPI is used as a cost of living adjustment in a large number of cases, including employee wage negotiations, pension benefits, five-year defense plan budgets, etc. Anybody who claims the cost of living argument doesn't count for the rigged CPI case is being disingenuous. As stated before, there are a number of statistical methods and alternative sampling that were incorporated in the CPI from the 80's onward to skew the figures downward.

Last edited by lchoro; 01-06-2018 at 10:34 AM..
Reply With Quote Quick reply to this message
 
Old 01-06-2018, 10:28 AM
 
64,752 posts, read 66,247,630 times
Reputation: 43132
correct it is used for adjustments . but it does not nor will it ever match anyone's personal cost of living. the cpi is far from rigged . if you want to think it go a head . the adjustments that were made were to make it more accurate and account for changes in buying patterns and weightings .

but if you want to think that the thousands of employees involved with compiling it are all rigging it that is ridiculous
Reply With Quote Quick reply to this message
 
Old 01-06-2018, 10:52 AM
 
Location: Brawndo-Thirst-Mutilator-Nation
15,207 posts, read 15,237,422 times
Reputation: 10951
The Fedgov doing its best to stave-off a recession and correction.....at some point the momentum will build to where it has to happen, I think? Inflation, stagflation, hum?
Reply With Quote Quick reply to this message
 
Old 01-06-2018, 10:53 AM
 
2,115 posts, read 726,381 times
Reputation: 1544
A huge problem is that interest rates are being kept artificially low. We will all eventually pay for this.
Reply With Quote Quick reply to this message
 
Old 01-06-2018, 10:56 AM
 
Location: USA
13,482 posts, read 7,338,338 times
Reputation: 9775
I remember the Stagflation, and Oil Crisis of the 70's. It wasn't pretty, and government made it worse with price controls, and other stupid moves. If we do have deflation it will be very ugly.
Reply With Quote Quick reply to this message
 
Old 01-06-2018, 10:58 AM
 
7,020 posts, read 6,648,933 times
Reputation: 5294
They're just implementing what they were told to do by the White House and Congress, to come up with a way to reduce the change in the CPI. The amount of the change desired is stated ahead of the study and implementation. There's no point in trying to resort to hiding behind the dignity of government employees as an argumentative tactic. It looks very weak like that other dude that was on here until school started.
Reply With Quote Quick reply to this message
 
Old 01-06-2018, 10:59 AM
 
25,866 posts, read 49,775,165 times
Reputation: 19313
If we have deflation Cash Will again be King or so it goes.

I remember 15% or higher mortgage rates, gas lines and such... even as a kid these things stick with you.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top