Why Inflation Is at a 12-year High

[Michie]

It’s all about the money.


Yesterday, the Bureau of Labor Statistics (BLS) released numbers indicating that the average price level of consumer goods has risen 4.2% since this time last year. This is the highest rate since 2008. In other words, the average consumer making the same salary this year has taken a pay cut when you consider what their paycheck can actually buy.

How does the BLS know this? One way the BLS keeps track of inflation is by using the consumer price index (CPI). The CPI uses some of the common goods urban consumers buy, and they keep track of the prices of these goods each year.

A CPI growth of 4.2% means this “basket” of goods the average urban consumer buys has gotten 4.2% more expensive. Economists call this measure inflation.

The CPI is by no means a perfect measure of inflation, nor could any measure be, but it provides some kind of benchmark to compare how much prices are changing over time.

What Is Happening to Our Money?

Continued below.
Why Inflation Is at a 12-year High | Peter Jacobsen

 

[atpollard]

Why Inflation Is at a 12-year High

The Government is spending like a drunken sailor on shore leave, and the people all just want to make sure they get some for themselves.

 

[trophy33]

The real, individual inflation can be 10%, 15%, 20%, 50% or even 500%. Depends on what we (plan to) buy.

The official country inflation is a weighted average of all possible goods in a country, but nobody of us buy all those things. Therefore we can have a totally different number.

For example, the price of lumber went 200% high in 2021. If I had wanted to build a wooden house in 2021, my money would lost a lot of a purchasing power this year, much more than just 4%.

 

[hislegacy]

Thanks joe

 

[Fantine]

The biggest cause of inflation for most people is medical expenses and higher education.

Medicare for all would help deal with medical inflation.

Education costs exploded because states are cutting their subsidies to state universities.

Hmm.

 

[atpollard]

The biggest cause of inflation for most people is medical expenses and higher education.

Medicare for all would help deal with medical inflation.

Education costs exploded because states are cutting their subsidies to state universities.

Hmm.

I think that actually works the other way around. As the Government offers more money to Hospitals and Universities, they raise fees to generate record profits so the cost per patient/student actually increases.

I read that before financial aid, the tuition at Harvard was 20 hours per week at the median US Salary and is now 80 hours per week at the median US Salary. Before Government aid, it was possible to work and pay for Harvard, now there are not enough hours in the week to pay the tuition.


Which is not to say that I have a solution.
I wish I did.

 

[Fantine]

I refer to public universities which are getting less money from their states. Harvard is a private university.

We have the most expensive health care on earth, although many lack insurance. When there is universal health care, per capita health care costs are much less.

 

[JimR-OCDS]

The biggest cause of inflation for most people is medical expenses and higher education.

Medicare for all would help deal with medical inflation.

Education costs exploded because states are cutting their subsidies to state universities.

Hmm.

That's not what causes inflation

Inflation is caused when the government prints money and borrows in order to spend more which causes it's value to drop. Instead of paying $2 for a quart of milk, you have to pay $3 because the dollar isn't worth $2 anymore.

 

[hedrick]

That's not what causes inflation

Inflation is caused when the government prints money and borrows in order to spend more which causes it's value to drop. Instead of paying $2 for a quart of milk, you have to pay $3 because the dollar isn't worth $2 anymore.

That’s sometimes true, but there can be other causes. In this case we are restarting a large economy. Not all parts of the supply chain ramp up at the same speed, so there are shortages. This will last for several months.

 

[Fantine]

That's not what causes inflation

Inflation is caused when the government prints money and borrows in order to spend more which causes it's value to drop. Instead of paying $2 for a quart of milk, you have to pay $3 because the dollar isn't worth $2 anymore.

Oh, like what happened during the Trump administration when the 1% and corporations got a huge tax giveaway---with money we didn't have to give away?

Now I understand.

Biden has a proposal to help finance the infrastructure bill. Take away part of Trump's giveaway to corporations, raising the tax to 28%, and restoring the previous tax rate for people earning over $400K.

Just as Obama restored the tax rate after Bush gave it away.

It isn't rocket science figuring out why Clinton and Obama's budget deficits (and surpluses) dwarfed Bush and Trump's. You don't give back money you don't have.

And inflation always affects some sectors more than once. Food costs can spiral because of droughts (read as "global warming") or natural disasters (read as "climate change.")

Medical costs always lead inflation. Did we really promise "a Tesla in every garage?" If the federal government didn't have such a big role in medicine today--Medicare, Medicaid, federal employees and retirees, VA, indian Health Service, military active and retired and families--can you imagine what the inflation rate would be?

As to college costs, even years ago 80% of students attended state universities--the very colleges that states are downsizing annually, passing costs on to students. The private colleges are for millionaires and the very poor. Many have tuition of $75,000 a year--how many families could afford that?

 

[JimR-OCDS]

Oh, like what happened during the Trump administration when the 1% and corporations got a huge tax giveaway---with money we didn't have to give away?

Now I understand.

Biden has a proposal to help finance the infrastructure bill. Take away part of Trump's giveaway to corporations, raising the tax to 28%, and restoring the previous tax rate for people earning over $400K.

Just as Obama restored the tax rate after Bush gave it away.

It isn't rocket science figuring out why Clinton and Obama's budget deficits (and surpluses) dwarfed Bush and Trump's. You don't give back money you don't have.

And inflation always affects some sectors more than once. Food costs can spiral because of droughts (read as "global warming") or natural disasters (read as "climate change.")

Medical costs always lead inflation. Did we really promise "a Tesla in every garage?" If the federal government didn't have such a big role in medicine today--Medicare, Medicaid, federal employees and retirees, VA, indian Health Service, military active and retired and families--can you imagine what the inflation rate would be?

As to college costs, even years ago 80% of students attended state universities--the very colleges that states are downsizing annually, passing costs on to students. The private colleges are for millionaires and the very poor. Many have tuition of $75,000 a year--how many families could afford that?

Once again you want to point at Trump's wrongs in order to justify Biden's wrongs.

It doesn't work with me.

I opposed Trump's spending and tax cuts which benefited the wealthy.

I opposed to his policy with Israel and the trashing of the Iranian nuclear deal that Obama got signed. Our credibility went out the window with that.

However, what I see what Biden is doing and the support he's getting from the media and even now corporate America, is dangerous for our freedom and liberty.

When the corporations go against the will of voters in a state, we need to stand guard as we're about to be taken over by a tyrannical force like we've never seen.

 

[Fantine]

Do you mean corporations boycotting Georgia for voter suppression laws?

With the massive gerrymandering and suppression the red states are barreling through, there is NO way you can say "the voters' will" because so many voters have been disenfranchised by Republicans.

Show me fair voting laws and fair districts and then we can have a conversation about voters being angry at corporations.

 

[JimR-OCDS]

Do you mean corporations boycotting Georgia for voter suppression laws?

With the massive gerrymandering and suppression the red states are barreling through, there is NO way you can say "the voters' will" because so many voters have been disenfranchised by Republicans.

Show me fair voting laws and fair districts and then we can have a conversation about voters being angry at corporations.

The voters approved of the voting laws and no one's voting rights were supressed.

The media has been making that up ever since and when MLB moved from Georgia to Denver, they failed to report that Colorado's voting laws were already like those in Georgia. They too mandate a photo ID when voting.

Whether you agree with the laws of a state or not, the voters have a right to govern themselves without private corporations blackmailing them. This is a very dangerous president and it never happened before

 

[Fantine]

The problem isn't ID. It is far too few polling places in urban areas. Why are lines over 6 hours in Atlanta while poll workers are lounging around elsewhere.

Why do voting hours not work for shift workers?

Why can't a big carpool go to the polls?

Conservatives are using ID as a smokescreen to obscure the blatantly racist and discriminatory provisions of the law.

 

[JimR-OCDS]

The problem isn't ID. It is far too few polling places in urban areas. Why are lines over 6 hours in Atlanta while poll workers are lounging around elsewhere.

Why do voting hours not work for shift workers?

Why can't a big carpool go to the polls?

Conservatives are using ID as a smokescreen to obscure the blatantly racist and discriminatory provisions of the law.

Polling places are run by the election commission who are generally part of the state legislature. I other words they are elected. They also consist of white and black members and the number of polling places has to do with space availability and volunteers to run those polling places.

There is nothing that is going to oppress the rights of voters in Georgia to vote.

People can still car pool to go and vote there is no law against it in GA.

This was misinformation the media put out in an attempt to help the democrat candidate win the run-off election they had.

MLB blackmailing the voters of GA by moving the All-Star game is a dangerous precedent.

When a private company doesn't like the will of the people, they'll punish them by moving their business out of state.

 

[jgarden]

Given that Trump supporters can hardly conceal their disappointment that the former President's prediction of a "MARKET COLLAPSE" never materialized under the Democrats, they have been forced to "grasp at straws" to feed this myth of an imminent economic collapse!

When a Republican President was in the White House, however, his supporters were all too willing to turn a "blind eye" when it came to those miles of hungry, unemployed Americans forced to lined up at food distribution centers!

 

[jgarden]

Polling places are run by the election commission who are generally part of the state legislature. I other words they are elected. They also consist of white and black members and the number of polling places has to do with space availability and volunteers to run those polling places.

There is nothing that is going to oppress the rights of voters in Georgia to vote.

People can still car pool to go and vote there is no law against it in GA.

This was misinformation the media put out in an attempt to help the democrat candidate win the run-off election they had.

MLB blackmailing the voters of GA by moving the All-Star game is a dangerous precedent.

When a private company doesn't like the will of the people, they'll punish them by moving their business out of state.

'I just want 11,780 votes': Trump pressed Georgia to overturn ...
https://www.theguardian.com › us-news › jan › trump-...
Jan. 3, 2021 — Trump asked secretary of state Brad Raffensperger in hour-long phone call to recalculate vote.

Trump pressures Georgia's Raffensperger to overturn his ...
https://www.washingtonpost.com › politics › 2021/01/03
Jan. 3, 2021 — President Trump urged fellow Republican Brad Raffensperger, the Georgia secretary of state, to “find” enough votes to overturn his defeat in an ...

Clip of Trump Asking for 11,780 Votes to the Tune of 'Rent ...
https://www.newsweek.com › ... › Voting › United States
Jan. 4, 2021 — The remix of the "Seasons of Love" song from the Rent musical has had at least 32700 likes since it was first tweeted on Sunday.

Trump-Spoofing 'Rent' Adaptation '11780 Votes' Is ... - Variety
https://variety.com › music › news › rent-song-spoof-1...
Jan. 6, 2021 — Donald J. Trump's plea for Georgia to "find" "11780 Votes" is the basis for a brilliant song spoof, set to "Seasons of Love" from "Rent."

Trump's Ask for 11,780 Georgia Votes Gets a Viral 'Rent' Remix
https://www.advocate.com › politics › trumps-ask-1178...
Jan. 4, 2021 — The Gregory Brothers created a humorous "Seasons of Love" autotune to the president's failed attempts at election interference.

Trump asked Georgia secretary of state to 'find' 11.7k ballots ...
https://thehill.com › homenews › administration › 5324...
Jan. 3, 2021 — President Trump directly asked Georgia's top elections officials to overturn his defeat to President-elect Joe Biden in the state during a Saturday
**************************************************************
Apparently "JimR-OCDS" has conveniently omitted all mention of the unprecedented attempt by a sitting American President to interfere in the 2020 Georgia presidential vote by asking that state's Secretary of State to produce another 11,780 Republican votes - just enough to change the outcome of the election!

All the blame for the attempt by the Republican majority in Georgia to subvert the Democratic vote is now being conveniently shifted onto the doorsteps of the private sector in general, and the MLB in particular - apparently the recorded requests by the President, in direct violation of his oath of office, to manipulate the outcome of the Georgia vote, deserves a "free pass!"

 

[iluvatar5150]

That's not what causes inflation

Inflation is caused when the government prints money and borrows in order to spend more which causes it's value to drop. Instead of paying $2 for a quart of milk, you have to pay $3 because the dollar isn't worth $2 anymore.

Inflation is caused by (among other things) too much money flowing into the hands of people who spend money. Since the great recession, the gov't has been pumping money into the economy, but it's mostly been going to large businesses who sit on it rather than spending it the way that consumers would. That’s why we haven’t seen much inflation since then. A trillion dollars given to banks to collateralize their debt will have a far different impact on inflation than would giving that same trillion dollars to a bunch of poor people who'd run out and buy groceries with it.

Either way, the OP - like so many conservative complainers on this subject - ignores the fact that the latest inflation numbers are measuring Apr 2021 to Apr 2020. Apr 2020 was the low point of inflation last year, where the economy almost went into a period of deflation. Part of the reason Apr 2021 looked like such a big jump was because its numbers were measured relative to the low a year ago.

 

[LikaKai]

The biggest cause of inflation for most people is medical expenses and higher education.

Medicare for all would help deal with medical inflation.

Education costs exploded because states are cutting their subsidies to state universities.

Hmm.

___

The govt throwing money around, and people not working, while at the same time, businesses are opening back up.

 

[Fantine]

In hard times, when the money goes into the right hands, it helps the country recover.

My state is one of those mean states where the governor refused the extended unemployment.

My tenants are four months behind in their rent. They are friends who take great care of our only rent house.

The wife is working. The husband will be hired back but the bank keeps postponing. He got another job in the interim, but his hours were cut.

This is in the most prosperous part of the state with a booming real estate market.

It's most prudent to stick with them. You evict them and you need to find new tenants. They may not be immaculate people who beautify your property.

The house had been home for one of my children in college, when the smart thing to do was buy a modest home in a booming market and pay a mortgage instead of rent. This couple are good friends of hers.

We'll be fine. The story just shows the disconnect between what the governor thinks and real life.