"inflation has slowed, but prices are still high? Why is that?"
literally the title of this thread/article
Man i sure wonder why my rate of increase % lowering hasn't done much to change the value that it's cumulatively adding on top of....
We were living paycheck to paycheck before that inflation boom too.
But it's also because inflation is a measurement of velocity, not a static indicator. If you have a year with ten percent inflation, that doesn't go away without deflation happening and the finance industry would rather nuke the stock exchange than allow deflation.
Yeah. Because wages have remained stagnant, or even decreased relative to prices. Inflation is supposed to be a response to people making more money, but that never happened. So now we're all just effectively poorer.
Inflation can happen for a bunch of reasons. It's just always cited in arguments against raising wages. The proper answer to which is, prices went up last year anyways, why can't prices go up a cent so I can have a dollar?
"I've turned off the oven, yet food is still burnt"
If you really want to compare that to inflation slowing, then you haven't turned off the oven, you just slowed down the rate that you are making it hotter.
They were doing that too begin with though?
Prices didn't go back down.
They'll keep waiting too. Because without some shock therapy like raising min wage to like $25 an hour overnight and taking that economic hit it's never going to get any better. This is the new normal until that happens.
News flash, most Americans were paycheck to paycheck before inflation, too.
You guys are getting pay checks?
“Inflation” to economists is how much the price is going up this month.
“Inflation” to most people is how much stuff costs.
It feels like there needs to be some acknowledgement of that when this is all talked about, after the superinflation of 2022. The goal should be that prices go back down, not that they go back to going up by 3% per year now that they’re way up high.
to most people is how much stuff costs.
inflation to most people is an increase in the cost of stuff* FTFY
also to be clear, the goal is that wages rise to meet the increased inflation, that's the historical trend.
You really don't want deflation. The correct thing now is for wages to go up to match the new costs and this has been happening.
That's not really true though. The only way to maintain infinite inflation is with infinite growth. But we only have finite resources. We also have modern examples of countries that experience deflation and they aren't the horror shows that the finance industry wants about. For example, Japan.
The levers which incentives wages closing the gap on the "super inflation" are probably more realistic than the levers that would cause the prices of everything to deflate.
"Many Americans" have always and will always live paycheck to paycheck. Seize the means of production.
The median sits around 80k these days. Everyone should be cheering, right?
What nobody wants to acknowledge is that the mode is still high 30's. Until that changes, we're leaving people behind.
CNBC can fuck all the way off with that brain dead journalism.
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