The inflation thread

I'm not sure how worried I am about this. IT seems like a substantial part of the CPI was driven by the wild spike in used car prices. Does that mean that people are actually spending more on cars or is the low supply of new cars making people who would have gone new before forcing people to the used market and that's driving up prices there? As far as I know, the CPI's basket of goods doesn't continuously adjust for distribution changes in purchases, so people could be spending less on cars overall and still the CPI would jump.

I am, however, very glad that I bought a house sight unseen last year during peak pandemic lockdown.

Well shit I thought this was a Sprocket Rockets threat where we could spend 50 pages arguing over the correct PSI of our tires.

How much will workers pay lag inflation?

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Originally Posted by wolfelot

How much will workers pay lag inflation?

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This is a valid economic question the answer to which is until they die of lung cancer.

we can’t source a 2x4 x 16 for less than $19.51 right now... FKNA!


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Supply chains have been turbofucked for a year plus - of course there's general price inflation as constrained supply and constant or rising demand = higher prices.
I'll certainly be worried if it goes off the rails, but we're well within normal bounds, especially given extraordinary circumstances. Also - no whining about deficit spending for anyone that supported the prior round of tax cuts. Get rid of cap gains cuts, estate tax changes and the other bullshit that has had effectively no positive effect on GDP and there's no longer a deficit.

Y'all getting inflation confused with supply/demand curves. Inflation is a money supply problem. If a 2x4 costs $1,000 it ain't inflation unless the money supply also increases. Without a money supply increase, when you buy the 2X4 it just means you can't buy a new pair of Praxis GPO's with the octopus top sheets.

If the gov't continues to dish out stimulus checks and put IOU's in the treasury cookie jar, that's a money supply increase.

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Originally Posted by Timberridge

Y'all getting inflation confused with supply/demand curves. Inflation is a money supply problem. If a 2x4 costs $1,000 it ain't inflation unless the money supply also increases. Without a money supply increase, when you buy the 2X4 it just means you can't buy a new pair of Praxis GPO's with the octopus top sheets.

If the gov't continues to dish out stimulus checks and put IOU's in the treasury cookie jar, that's a money supply increase.

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Official inflation measures use CPI, which is goods pricing, therefore impacted by supply constraints. I agree with you, but official measures are a combination of supply/demand AND money supply.

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Originally Posted by wolfelot

How much will workers pay lag inflation?

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indefinite.

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Originally Posted by east or bust

we can’t source a 2x4 x 16 for less than $19.51 right now... FKNA!


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With all the building activity I been getting wood for free at the Telkwa mall (AKA the dump ) from demolition jobs,

for minor jobs where I would have bought some lumber I just go out rummage and get it for nothing

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Originally Posted by XXX-er

With all the building activity I been getting wood for free at the Telkwa mall (AKA the dump ) from demolition jobs,

for minor jobs where I would have bought some lumber I just go out rummage and get it for nothing

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And I suppose you get your chicks for free too.

For inflation to be sustained wages have to go up in lockstep with prices. What's different now from the 60's-80's (besides the temporary supply side disruptions) is that workers in NA don't have the power to demand wage increases.
Meanwhile--since low inflation benefits the lending and investing classes, count on the Fed and Treasury to do everything possible to keep it that way, regardless the cost to everyone else, no matter what Biden says.

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Originally Posted by old goat

For inflation to be sustained wages have to go up in lockstep with prices. What's different now from the 60's-80's (besides the temporary supply side disruptions) is that workers in NA don't have the power to demand wage increases.
Meanwhile--since low inflation benefits the lending and investing classes, count on the Fed and Treasury to do everything possible to keep it that way, regardless the cost to everyone else, no matter what Biden says.

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I believe we're getting to the point where there will be have to be wage increases in the service industries in order to fill the jobs in teaching(k-12), restaurants, health care, elder care, food packing plants, and other in person settings. It's a 2 month wait to get windows washed! At a bit higher level building trades, any kind of CNC machine operator, truck drivers and others are all in high demand. If you're making brooms in a factory competing w MX and China, prob different story although transportation could give an edge to onshore production.

Grocery store paying $18 for baggers.

Feel bad that my kid is going to be a dockhand for $14.
But I’d rather he be outside.

Wages for shit jobs were going up for years, what’s your bitching cumshot?

other than Republican dumb twats bitching that the poor should be poor, and stupid fucks like debased wanting hard money, what’s the point?

Fuck you’re an angry cunt.

Have a nice day.

Yeah I find dickbags who were cheering wages rising for “real” workers under the mango moron suddenly worried about inflation transparent hacks worthy of nothing but contempt.

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Originally Posted by Hopeless Sinner

I believe we're getting to the point where there will be have to be wage increases in the service industries in order to fill the jobs in teaching(k-12), restaurants, health care, elder care, food packing plants, and other in person settings. It's a 2 month wait to get windows washed! At a bit higher level building trades, any kind of CNC machine operator, truck drivers and others are all in high demand. If you're making brooms in a factory competing w MX and China, prob different story although transportation could give an edge to onshore production.

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Are you really comparing teachers and healthcare workers with waitstaff, food processing and window washers? Like they’re all entry level service industry positions?


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Yeah that is a poor comparison. Starting salary for a teacher with no masters here is 70k, and they have access to affordable subsidized housing, pension and the best health insurance in town.

But Subway is apparently offering 22 per hour, so the working stiffs certainly have leverage if they have a pulse and housing.

JH isn't reality. But you know that.

The comparison still sucks even in Jackson when Subway workers are making 22 an hour, and teachers are making 52 an hour (168 working days a year) plus benefits, that is why I included both examples.

No doubt these are higher starting wages than most hoods, but comparing a subway service industry worker to a teacher or nurse is silliness.

I will let the poster defend themselves but I didn't see it as a Teacher=a Fry cook.

Guy who is working PT Sub for me just started at a private school in Big Sky at $ 22.00 and hour, with benefits he thinks he scored big. I am paying him 40 an hour.

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Originally Posted by Bunion 2020

I will let the poster defend themselves but I didn't see it as a Teacher=a Fry cook.

Guy who is working PT Sub for me just started at a private school in Big Sky at $ 22.00 and hour, with benefits he thinks he scored big. I am paying him 40 an hour.

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Originally Posted by Hopeless Sinner

I believe we're getting to the point where there will be have to be wage increases in the service industries in order to fill the jobs in teaching(k-12), restaurants, health care, elder care, food packing plants, and other in person settings. It's a 2 month wait to get windows washed! At a bit higher level building trades, any kind of CNC machine operator, truck drivers and others are all in high demand. If you're making brooms in a factory competing w MX and China, prob different story although transportation could give an edge to onshore production.

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He literally calls teachers and nurses service workers equivalent to people working in meat packing plants or restaurants and then says truck drivers are at a "bit higher level".

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Originally Posted by Cono Este

It’s not just a class war, it’s a technology war. Computers have put more people out of work than anything else. Kept wages down. But productivity has risen.

It will only get worse, skills, or no skills.

Some arguement for Yangs basic income in the future, or we’re going to be living in some kind of sci fi world with that haves living in artificial worlds and the have nots living on the dumpster that is left of this planet.


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So, Ready player 1?

So H1B's for Bangladeshi and Ethiopian truck drivers?