Consumers need to change their behavior before companies change their prices.
Q1 2024 saw massive declines in Starbucks and other fast food retailers. So I already knew about this trend. After waiting it out, companies are finally counteracting and offering discounts/deals.
This delay in consumer behavior and prices is strange to watch but easy to understand. Higher prices never stop my current purchase, they only make me think harder about my next purchase.
Just speaking from personal psychology here. If I’m already at McDonalds or whatever and prices are higher than I expect… I delay my next trip to McDonalds but I finish my order today.
Similarly, I don’t really look at advertisements. So deals or whatever don’t entice me, because I don’t know about them.
Only after I visit do I see the price drops or discounts and deals, and then it only really affects my next visit. Because I already have decided on a Big Mac so I don’t care that the nuggets are 20% off. When I feel like nuggets later that’s when I’ll think about the deal.
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People say I’m going to fire all of these meatpackers because COVID-19 closed down the Hotel all this meat is going to and bam, -30% + deflation starts to kick in and our politicians start to panick, because those politicians are smarter than you and know where that was going.
Politicians overcorrected and caused inflation from overaddressing our COVID-19 issue. But I’d rather live with inflation than the massive job loss numbers that was facing us in 2020.
Now today, we have a bunch of dumbasses who can’t even remember the economic calamity we avoided just 4 years ago complaining about inflation that happened fucking years ago.
This shit just happened and people are like “Why the fuck did meat prices go up?”. How short-term are yall’s memory? And then we used economics to print a fuck-ton more money to encourage more people to eat meat (to minimize the boom/bust… borrowing from the future so that we’d eat more meat during the COVID19 era), and people wonder where the hell all this inflation came from.
Its pretty fucking straightforward yo. We saved the jobs, we tried to mitigate the culling of hogs / cows. Then we had a boom/bust period that ultimately concluded with 2022-era inflation, and then we tried to deal with that. COVID19 was a very difficult time for policymakers, economics. But we lived through it, but still are dealing with the “ripples” of that change.
Was it perfect? Hell no. Now that we know today’s statistics, we can say that we printed too much money and left interest% rates too low. But overall, we did the right thing, and it’d require a crystal ball showing 2024 data to know whether we printed too much (or too little) money back in 2020. I’m happy we chose to err on the side of inflation and save as many jobs as possible, and if we had a time-machine I’d go back to 2020 and overall support the same actions (though maybe a bit less money-printing so that we don’t have quite as much inflation).
Sure buddy. Its not like people had statistics in the 1929. Oh wait…
The deflationary period began in 1927. Long, long before Black Friday. Deflation then grew out-of-control over the next few years, leading to 30%+ unemployment numbers (because as we all know, deflation causes unemployment).
After the 1930s, this country pretty much swore off deflation ever again. We have done our best to avoid deflation, for good reasons as the graph above should make obvious.
As opposed to you? Who has come into the topic to talk about CPI and Inflation while proudly displaying ignorance to simple monetary matters?
If you want to talk about health, you bring in doctors or other health specialists. If you want to talk about the economy and how to best build a country and a system of money, you need to bring in bankers and economists.
If you don’t care about money, then leave the topic. Don’t shit on people while being ignorant, at least take a step forward and learn the basics.
Dude, COVID19 dropped prices across the board. How cheap were Hotels? Meat? Do you remember the $2 gas prices?
That grey line? That was deflation happening for one month and then every politician in the country stepping on the “inflation button” at the same time. It didn’t matter if you were Republican or Democrat, literally everyone got together in a couple of days and said “Yeah, lets print $1.5 Trillion bucks”.
THIS is what caused the inflation. M2 (aka: the amount of money in the USA).
And every politician hit the “Make more M2 / Make more money button” because holy shit COVID19 is fucking our economy, we’re about to fall into deflationary spiral somebody please save us mode.
Job losses caused inflation, because politicians got together and did something about it. And they did it so quickly that most people seem to have forgotten it despite it only being 4 years ago and you’re fucking up the order of history. COVID19 shut things down, and then came the inflationary stimulus / law changes
You sound like a COVID19 denialist. Except instead of denying basic health science, you’re denying basic economics. I’m not sure if you really want that look for yourself.
But yeah, who cares about Fauci or whatever health care specialists think. They’re all paid off by the liberals. No wait, I’m on a liberal forum now. I’m supposed to hate bankers and economists now and deny basic economics. Yeah…
Who cares about Powell or basic economic predictive factors like M2, montetary policy, CPI or inflation. Those guys don’t know anything anyway, despite saving our jobs and preventing one of the worst economic disasters of our country in the last hundred years. They’re all dumbass rich elites from the coast. (No wait, that’s a conservative talking point, right?). Erm… they’re all rich bankers. Right, rich people. Not elites, its conservatives who hate elities, its liberals who hate rich people.
But in all cases, proudly displaying ignorance is the best move. Amirite? Who needs an education or studying anyway? Its all bullshit.
Cry more to AOC, who was part of this inflation problem crying about jobs and holding back Powell from raising the FFR to combat inflation.
Oh right, you’re a dumbass who don’t realize you’re shitting on your own side right now. AOC cried about everyone’s jobsss and unemployment that’s completely fucking non-existent right now. We undershot the employment rate, its clear we had to go higher and steeper with these interest rate hikes.
And you’re here sitting like an idiot, unable to comprehend basic history, fucking up your side of the discussion.
But sure, pretend that I’m the one who is a problem despite taking my time to talk about what’s going on. You’re welcome by the way, now please, sit down and think about your discussion points and where the politics have been laid out over the past couple of years.
Powell here was right and honestly… Powell was on the side that protected jobs too much. We all had to go higher on the FFR and push % even higher given what we know about the situation today.
There’s two directions. You can raise rates, or you can lower them. Raising rates causes job losses but culls back inflation. Lowering rates increases the number of jobs but causes inflation to go up.
Its a fucking number… Because its a number, there’s only two directions to go. Up or down. Or zero if you want to split into a 3rd option for some reason. But not much aside from “raise”, “hold” or “lower” rates.
Now comes the political debate. Should we have been raising rates last year? Or should we have been lowering rates last year? And survey says… Oh right, liberals were asking to lower rates (ie: making inflation worse). Ding ding ding!! It pays to be a dumbass, because its the only way you can keep your petty little brain straight, isn’t it? You don’t like facing reality of your side’s opinions, do you?
Its not just conservative dumbasses who are unable to foresee basic problems with their politics, but also far left liberals who demonstrate ignorance. Thank you for making an example of yourself.
US government vets said to be ready to assist with culls, or ‘depopulation’ of pigs, chickens and cattle because of coronavirus meat plant closures
You’re a dumbass. Americans stopped eating on a mass-scale due to COVID19, leading to a historical culling of pigs and cows, leading to a boom/bust of our food supply culminating in today’s inflation.
I support the politicians (and yes, bankers) who did hard work to counteract this problem (especially as they acted swiftly, and across party lines). And I shit on people like you who wish to just shit on the hard work of our leaders on this subject. Especially because you’re clearly too stupid to figure out basic history on this subject.
What we did years ago is something to be proud of. But it has a cost, the calculations weren’t perfect and we’re dealing with more inflation than expected in the year 2022. And as the graph at the beginning of the topic points out, the inflation was almost entirely during 2022, and has been hampered by now.
We still need to get used to these newer, higher, prices. But its better than the alternative (Without decisive action back then, we’d have even even larger-scale closures of food supply across the country. Which would have led to an even worse bust-boom bullwhip effect in our country)
I’d be interested in seeing a price comparison of some specific items over the course of the last four years.
That’s called the CPI and its what the topic is about. I highly suggest you read the CPI releases. You might learn something. www.bls.gov/news.release/cpi.nr0.htm
I mean, I’m reading the chart and it’s saying prices are up 21% since '21 but I am not personally seeing that. I’m curious as to why that may be. The 22% for ‘food away from home’ though, I can absolutely confirm in my experience.
CPI splits Urban vs Rural, and into economic zones like East, West, and… even by State.
Time derivatives are a key concept in physics. For example, for a changing position x its time derivative dx/dt is its velocity, and its second derivative with respect to time, d^2^x/dt^2^ is its acceleration. Even higher derivatives are sometimes also used: the third derivative of position with respect to time is known as the jerk. See motion graphs and derivatives.
I know not everyone takes Calculus. But this is quite elementary if you’ve taken the subject. There should be no confusion here.
Inflation is the change of price over the change of time. Or alternatively, Inflation describes the first derivative of price. What people care about however is the overall price, which unfortunately policy-makers can’t really control that well. We only have controls over the change-of-prices (ie: the derivative), not the actual direct price controls.
doesnt stop my can of sparkling water from doubling in price in the last few years just because you want to limit “inflation” changes to ‘12 months’
You’re going the wrong direction yo to his original words. I don’t even know what you’re complaining about anymore. The original poster was trying to stretch time out to multiple years. My joke was that shorter-time frames is what is more accurate because that’s what mathematics / calculus has traditionally done.
I’ve said my piece, and I stand by it. I’ll repeat it here.
Prices are prices. If you want to complain about prices, then complain about prices. But we all know we aren’t going to do anything about prices. Furthermore: falling prices are utterly terrible for economies, so no one wants to force deflation.
I’ve done many inflation topics over the last 5 years. I’m surprised at how utterly shit people around here on this topic are. I’d expected more of lemmy users to know the basics of this subject. But I do appreciate you trying to catch me on a technicality, however arbitrary it was… you’ve demonstrated that you’re at least at the Calculus level to me.
Liberals are asking for all kinds of inflationary pressures. Student loan forgiveness, higher minimum wages, job protections. And most dramatically, AOC asking for lower rates when talking to Powell last year.
It’s actually rather difficult for me to think of a singular Democrat policy that’d have deflationary effects… Well… There’s always raising taxes which I’d strongly support. Especially right now when inflation is at the forefront of a lot of people’s minds. It’d cause a slowdown in spending and likely drop prices.
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