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Hah here it is officially. Someone who has no clue that CPI is rigged.
Do yourself a favor. Look up how much Healthcare Insurance is weighed. It's less than 1%
Bump it up to 1% Since the medium family income is ~60k that means they are paying 600 a year for coverage. I'll do the math for you 60,000*.01=600
Now use your head and think this out. How many families are paying 600 a year for coverage?
Just to clear if one makes 50k and gets a 5k heath insurance coverage as part of employment that works out to 50,000+5000=5500 5000/55000=~9%
You're welcome.
You are like a little kid with a nitromethane chainsaw.
CPI U and CPI W both weigh insurance over 1% not under. The figures seem low because the targets of CPI tend to be disproportionally among those with no insurance, Medicare, Medicaid, VA care, Obamacare etc. Further, many costs are covered in others areas....the total weighting for medical care is about 8%. So relax and maybe pay a little more attention.
Originally Posted by EDS_ View Post Four...post the '08 bust there was a massive increase in money supply and virtually no general price inflation.
these facts that I posted proved you wrong
"When the 2008 financial crisis hit this country, the average annual inflation rate was nearly double the Fed's target at 3.8 percent. In fact, some months in 2008 had annual inflation rates as high as 5.6 and 5.4 percent, which were the highest rates in 17 years."
Since World War II, there have been six periods in which inflation—as measured by CPI—was 5 percent or higher. This occurred in 1946–48, 1950–51, 1969–71, 1973–82, and 2008
Tell you what, Mr Ph.D in economics, why don't you tell us when you saw the biggest collapse since the Great Depression coming. You remember the housing crash, right?
You must have written papers on it since you have a Ph.D. When did tell us the housing collapse was going to happen. I don't think you even know what caused it.
Basically what I'm saying is I don't believe you have the pedigree or knowledge.
Of course you don't because you do not know what you are doing.
The Fed. did not begin increasing the monetary base until right around Sept. 1, 2008. The months of relatively high inflation in '08 were before that. See the problem?
In January 2020, N95's cost $0.80 apiece. 3M made a very steady supply of them, and 3M was happy (made enough profit) at $0.80 apiece. You could get them in 2 days from Amazon.
Then the world needed N95's (demand shock). Did 3M ever raise their price, or was it profiteers? You couldn't buy an actual N95 from 3M if you wanted to, because they hadn't ramped up production. The "government" bought ALL of 3M's N95's (a supply shock).
Today, 3M has ramped up production and N95's will cost you $1.35. You can get them in 2 weeks. Is that 3M profiteering? Or is it inflation caused by the higher cost of production - equipment to amortize, cost of materials has risen, higher wages to attract workers, paying overtime to get higher production, etc?
There are 500 people who buy a certain TV every month. It costs the manufacturer $300 and they sell for $400. The mfgr is capable of producing 1000 TV's per month.
Then magically, another 400 people are given $400 and decide they want to buy the TV too. What would cause the TV manufacturer (knowing there are plenty of other TV's for $400) to raise their prices (inflation)? Nothing.
It's only if the TV manufacturer can only produce 500 TV's a month where you would feel and see the "demand shock".
Would inflation be as high without the increased money supply? Of course not.
It is definitely a factor. Not sure how old you are but they have been pumping money into the system since 2008 and inflation was pretty tame until Biden came in a implemented stupid policies.
I've heard the supply problem is going to go on past this year. That's a long wait.
which is why we should wait until the restrictions are off and the economy has a *chance* to attempt to function "normally".
The schools are providing us a great example right now, but surely schools aren't the only affected "manfacturer".
Bus drivers are Covid-positive, so Johnny has issues getting to school. Johnny gets to school, and 20% of the classrooms have no teacher because the teachers tested positive for Covid. So what % of today's learning got done? Some Johnnys didn't make it to school, and another 20% didn't get the full day's learning.
Now, move that to the meat-packing industry and process labor. And then the trucking companies, the distributors/wholesalers/warehouse workers and the grocery butchers and truck unloaders/shelf-stockers.
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