As a country prints more money, prices go up as a side effect. But inflation isn’t a measure of the money supply, it’s a measure of the price of goods. But people act like greed isn’t a component even when we see things like companies skirting the law and colluding on prices through loop holes.
That’s because inflation is the relevant factor for considering consumer well-being, and because prices can go up for any number of reasons.
For example, prices can go up due to a shortage. Suppose there is a corn blight, and 90% of corn fields are destroyed one year. We expect the price of corn to go up, then, because corn is now scarce. People can switch to other grains for any deficiencies in nutrition they have - but we still need to ask, what should we do with our remaining corn? How much should go to corn on the cobb, creamed corn, corn meal, corn oil, or doritos? Some people want to make their family’s traditional corn bread for thanksgiving. Some people want to eat doritos more than anything else in life. Some people never eat corn anyway since it gives them a stomach ache. And some people exclusively eat corn instead of flour due to a gluten sensitivity that every doctor they’ve seen assures them isn’t real, but their osteopath/shaman confirmed using magic crystals. If corn stays the same price as before the shortage, the first person to get to the store buys it all and hoards it. But using the signalling mechanism inherent in higher prices, everyone is persuaded to only buy as much corn as they really need. And at the same time, farmers who might be economically devistated by their poor yeilds are able to recoup their losses, and are reassured that if they can find a way to fight the blight, a market for their product will still exist.
As for greed - we don’t talk about it because it is uninteresting. It is a constant. It would be like talking about the effect of gravity on crop yeilds - it isn’t going to change, so it doesn’t matter. What does matter is the anti-competitive practices you are describing, which should be controlled via strong regulations and regulatory bodies.
I’m not saying we measure inflation incorrectly, I’m saying I’m annoyed when people act like greed isn’t a part of it. And yes, by greed I mean “anti competitive practices”.
I have yet to meet anyone who had a strong opinion that anticompetitive practices were not happening. Usually when I talk about inflation, we discuss numerous factors like shortages, the fed interest rate, how some amount of inflation is reasonable to maintain a stable market, etc. And then one of us will say “and there is probably some price fixing going on that we don’t know about”, and everyone will agree that - knowing how profit-seeking companies work - this is probably the case, but we personally have not seen any strong evidence.
But… it doesn’t matter, does it? Whatever the reason for the increase in prices, if the CPI goes down, inflation goes up, that’s all there is to it, no?
I’m saying it’s annoying when economists and government officials act like greed can’t play a part in inflation when shit that should be illegal (like price colluding) happens that is purely an effect of greed.
Hmm… I don’t think they are. Most of the time they don’t even mention the reasons for inflation, just that inflation happens. A “reason” is only mentioned if it contributes in a significant manner - like a horrible financial strategy by a new government, or a market crash. Greed is an inherent part of capitalism, so - to mention it - they’d have to talk about it every single time.
What I mean is: everybody who understands what inflation is knows that greed is a contributing factor. Everybody who doesn’t understand it, wouldn’t understand why is it being mentioned every time.
What do you mean government officials don’t mention reasons for inflation most of the time? That happens very often lmao. It’s used as a talking point all the time. What fantasy land are you in where government officials always act in good faith and 100% logically? Because that’s been my point this whole time, that I find that frustrating, and it really feels like everybody keeps trying to make it about something else, like I’m misunderstanding something.
I don’t understand what’s confusing. I’ve explained that by greed I don’t just mean “I want money” and I mean companies trying to do things that should be illegal. But you’re try to redefine what I mean to just inherent desire for money. I didn’t even say people shouldn’t do something, I just said it annoys me. Am I not allowed to be annoyed? I never said all people who talk about inflation, either, only some, so yes, saying you’re implying they “always act in good faith” is a fair criticism if you’re disagreeing that nobody ever does the thing I’m saying annoys me.
Again: I understand what you mean. I get it, mate.
It doesn’t matter. Nobody will mention that, because it’s just a daily thing, it’s a constant, it’s always there.
Not to mention that you don’t just go “and, by the way dear listeners, company XYZ is involve in criminal activities, due to which we have inflation”. You take them to court, not talk about it.
Am I not allowed to be annoyed?
Did I say you’re not supposed to do something here? Feel annoyed, rightly so. Just don’t expect anyone to start talking about “greed/illegal activities being [one of the causes of] inflation”, because it’s either obvious, or illegal to do so.
saying you’re implying they “always act in good faith” is a fair criticism if you’re disagreeing that nobody ever does the thing I’m saying annoys me.
WTF? I never said anything remotely similar to this, mate…
can you explain what you mean
As a country prints more money, prices go up as a side effect. But inflation isn’t a measure of the money supply, it’s a measure of the price of goods. But people act like greed isn’t a component even when we see things like companies skirting the law and colluding on prices through loop holes.
That’s because inflation is the relevant factor for considering consumer well-being, and because prices can go up for any number of reasons.
For example, prices can go up due to a shortage. Suppose there is a corn blight, and 90% of corn fields are destroyed one year. We expect the price of corn to go up, then, because corn is now scarce. People can switch to other grains for any deficiencies in nutrition they have - but we still need to ask, what should we do with our remaining corn? How much should go to corn on the cobb, creamed corn, corn meal, corn oil, or doritos? Some people want to make their family’s traditional corn bread for thanksgiving. Some people want to eat doritos more than anything else in life. Some people never eat corn anyway since it gives them a stomach ache. And some people exclusively eat corn instead of flour due to a gluten sensitivity that every doctor they’ve seen assures them isn’t real, but their osteopath/shaman confirmed using magic crystals. If corn stays the same price as before the shortage, the first person to get to the store buys it all and hoards it. But using the signalling mechanism inherent in higher prices, everyone is persuaded to only buy as much corn as they really need. And at the same time, farmers who might be economically devistated by their poor yeilds are able to recoup their losses, and are reassured that if they can find a way to fight the blight, a market for their product will still exist.
As for greed - we don’t talk about it because it is uninteresting. It is a constant. It would be like talking about the effect of gravity on crop yeilds - it isn’t going to change, so it doesn’t matter. What does matter is the anti-competitive practices you are describing, which should be controlled via strong regulations and regulatory bodies.
I’m not saying we measure inflation incorrectly, I’m saying I’m annoyed when people act like greed isn’t a part of it. And yes, by greed I mean “anti competitive practices”.
I have yet to meet anyone who had a strong opinion that anticompetitive practices were not happening. Usually when I talk about inflation, we discuss numerous factors like shortages, the fed interest rate, how some amount of inflation is reasonable to maintain a stable market, etc. And then one of us will say “and there is probably some price fixing going on that we don’t know about”, and everyone will agree that - knowing how profit-seeking companies work - this is probably the case, but we personally have not seen any strong evidence.
If you believe that greed is paying into inflation then I’m not talking about you, simple as that.
But… it doesn’t matter, does it? Whatever the reason for the increase in prices, if the CPI goes down, inflation goes up, that’s all there is to it, no?
I’m saying it’s annoying when economists and government officials act like greed can’t play a part in inflation when shit that should be illegal (like price colluding) happens that is purely an effect of greed.
Hmm… I don’t think they are. Most of the time they don’t even mention the reasons for inflation, just that inflation happens. A “reason” is only mentioned if it contributes in a significant manner - like a horrible financial strategy by a new government, or a market crash. Greed is an inherent part of capitalism, so - to mention it - they’d have to talk about it every single time.
What I mean is: everybody who understands what inflation is knows that greed is a contributing factor. Everybody who doesn’t understand it, wouldn’t understand why is it being mentioned every time.
What do you mean government officials don’t mention reasons for inflation most of the time? That happens very often lmao. It’s used as a talking point all the time. What fantasy land are you in where government officials always act in good faith and 100% logically? Because that’s been my point this whole time, that I find that frustrating, and it really feels like everybody keeps trying to make it about something else, like I’m misunderstanding something.
What a weird leap that is to go from “don’t mention reasons” to “always act in good faith”. Yikes.
Greed is always a factor. Always. There’s no point mentioning it, just like there’s no point in telling someone to “remember to breathe”.
I don’t understand what’s confusing. I’ve explained that by greed I don’t just mean “I want money” and I mean companies trying to do things that should be illegal. But you’re try to redefine what I mean to just inherent desire for money. I didn’t even say people shouldn’t do something, I just said it annoys me. Am I not allowed to be annoyed? I never said all people who talk about inflation, either, only some, so yes, saying you’re implying they “always act in good faith” is a fair criticism if you’re disagreeing that nobody ever does the thing I’m saying annoys me.
Again: I understand what you mean. I get it, mate.
It doesn’t matter. Nobody will mention that, because it’s just a daily thing, it’s a constant, it’s always there.
Not to mention that you don’t just go “and, by the way dear listeners, company XYZ is involve in criminal activities, due to which we have inflation”. You take them to court, not talk about it.
Did I say you’re not supposed to do something here? Feel annoyed, rightly so. Just don’t expect anyone to start talking about “greed/illegal activities being [one of the causes of] inflation”, because it’s either obvious, or illegal to do so.
WTF? I never said anything remotely similar to this, mate…