• EatATaco@lemm.ee
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      25 days ago

      Sure. But inflation is down, we didn’t go into a recession, and wage growth has been outpacing inflation for over a year now.

      This is good, we’re going in the right direction. Deflation would be way worse.

      • Ensign_Crab@lemmy.world
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        25 days ago

        We should raise the minimum wage until it is commensurate with the price gouging. All at once, since none of the corporations eased us into higher prices.

        But we have zero parties in this country that are willing to raise the minimum wage at the national level.

      • Soulg@sh.itjust.works
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        24 days ago

        Going in the right direction is fantastic except that it takes too long to really feel the impact, so all the low information voters will put in a republican, they’ll just happen to be in office when the good times hit, but then they’ll ruin it completely, which won’t be felt until a Democrat takes over, who then will have to clean up the mess, repeat ad infinitum

        • EatATaco@lemm.ee
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          24 days ago

          You don’t have to go any further than these comments to find plenty of people who have no idea how any of this works. lol

          I’m hoping this time you’re wrong because there is a whole lot more on the line right now than just the economy.

    • Asafum@feddit.nl
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      25 days ago

      Yeah but unfortunately that’s never going to change. Inflation is the rate of increase and they always want a rate of increase, just at 2%.

      It’s never going to go negative because growth for the growth gods!! :(

      • Cryophilia@lemmy.world
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        25 days ago

        Actually, it will never go negative (I hope) because if it goes negative we’re probably in for a massive global recession that will introduce untold suffering.

        You think they aim for 2% because that’s what’s good for rich people? 2% is the magic number for the whole economy.

        • orcrist@lemm.ee
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          25 days ago

          Who taught you that? Remember, economists funded by rich people have obvious biases… And what happens if our salaries and pensions are indexed to the cost of living? Is the reasoning still good?

          • drphungky@lemmy.world
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            25 days ago

            Just learned I was funded by rich people. Did I miss a paycheck somewhere?

            -an actual economist, telling you deflation is bad

          • WoodScientist@lemmy.world
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            24 days ago

            Populist candidates used to actually argue for higher inflation. See the free silver movement of the late 19th century. With some inflation present, the real value of all debts goes down over time, as long as you make the interest payments.

            • orcrist@lemm.ee
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              23 days ago

              There are many ways that a government could handle excessive debt. Inflation is one method that is to some degree successful, and also to some degree a complete failure in contemporary America. How many people have student loan payments when they graduated college a couple of decades ago? That’s just shocking. Which is to say, interest rates are one tool, but at the moment they are not sufficient to handle the problems society is facing.

      • the post of tom joad@sh.itjust.works
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        25 days ago

        If “deflationary environment” is neoliberal for “restrictions on and immediate reduction of the current ongoing price gouging” then call me Moleman cuz yes, i want that, right now.

          • the post of tom joad@sh.itjust.works
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            25 days ago

            I need you to eat my entire sittin muscle. Dont say you don’t want to, i can see you enjoy doing it by how you talk. Its a chore speaking with you often i bet.

            get to chewing

            Dagum smug ass no thinking neoliberals… Always sound like the same 20 something middle manager haha

    • Soulg@sh.itjust.works
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      24 days ago

      The economy would tank really hard if wet somehow deflated it to go back in time. It doesn’t work like that.

      Plus the last 5 years was almost entirely from covid anyway

      • Cyborganism@lemmy.ca
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        24 days ago

        I’m not saying it should. I’m just saying the rest of us still can’t keep up even with 2% because of the cumulative two digits inflation we’ve had over the past few years on top of it.

    • WoodScientist@lemmy.world
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      24 days ago

      That’s just how inflation works though. Wages tend to rise slower than prices do. In economic terms, wages are “sticky.” They rise and fall slower than prices do in response to market conditions. Long periods of slow gradual inflation are fine, as people simply demand that their wages rise at a steady 2-3% to keep up with inflation, and employers expect it. But if there is a sudden spike in prices, it’s a lot harder for employees to suddenly negotiate wage increases. Instead, the slower process of labor market competition, employees leaving underpaying jobs for better paying jobs, has to take over. It’s going to take a few years for wages to catch up with the spike in prices, but it does happen with time, primarily from people switching jobs.

      • Cyborganism@lemmy.ca
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        24 days ago

        I’ve never had a 2% pay raise since I started my career in 2008.

        Not by staying in one company anyway. I had to change companies every time and even then it was hard negotiating anything above what I was making before.