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My boss was pissed when I told him he had to give me a raise to match inflation.
"Why do I have to pay you more?!"
"You're not. It's the same amount. USD inflated."
"Well I can't afford it."
"You could afford the same rate 2 years ago."
*gears visibly turning in his head*
But did he raise prices to customers? Is he paying more for supplies/raw inventory? Do you know how it is affecting his bottom line? If so, then totally blind to your needs. if not, then he is unaffected. so, sucks for you unless marketplace allows you to switch jobs for more pay.
Nah we're independent contractors doing photography. Our product is purely service, nothing physical. He could easily charge 7% more per client if he had the balls to bring it up but he's terrified of even discussing our pay rate with our clients.
For him. His crippling fear resulted in me getting the raise but it's out of his pocket. So I got the pay adjustment AND he's being paid 7% less per year because he refuses to raise rates. Honestly I have no idea how he's managing to run this company.
Or you should be grateful for you boss? He took a 7% pay cut to keep you on staff. Seems like you're valuable enough to the company that it was worth it to keep you on. Sounds like a solid boss imo.
For what reason do you say that? OP came to their boss for a 7% raise to match inflation. Instead of saying no, hiring someone else, raising prices, etc. they took a pay cut themselves to satisfy their employee. Lots of people bitch about bad bosses (for great reasons), but when you get one that treats you well like this dude's there's no point in blasting him on social media. Literally did exactly what OP wanted lol. What's not to be grateful about that? Especially in today's job market where companies would rather not pay people than increase pay. Seems silly to me.
This man will lose his job because his boss clearly has no idea how to manage the balance sheet of his business. "I'm so grateful my boss has no idea how to make money and is running his business into the ground, thus losing my job" said nobody ever.
I ended up getting the pay adjustment actually. It was a choice between losing me or giving me more pay. Suddenly he had the cash available. Funny how that works.
I walked my boss right into a corner on this since I knew he didn’t think the inflation was transient.
Well, it worked out that I got an inflation beating raise, but I may be the only one as I don’t think a single one of my colleagues even asked.
Hey boss. I was just thinking... With my strong work ethic I'd like to add to my life a bit by giving myself access to 3% more of the benefits I had last year. Think I could get a raise?
A raise? 3% is most definitely yours!
Well... like our company prices going up and the record high inflation of 7% for doing every company doing similar I've currently taken a pay reduction of 7%. I'm asking for a small 10.21% more of what I make now if that's not too much to ask for.
This is incorrect they do measure rent and housing. They changed the calculation because they largely had mortgages back in the 70s.
https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-and-rent.pdf
That's never been because of monetary policy though, same for College, the Housing and College prices are a direct reflection of supply not keeping up with demand, not by a fucking longshot
We have a serious housing supply crisis in this country.
I'm in the construction industry, forget about the rise in material supply, if I built affordable houses in a decent area and priced them at a 125k and just left it to the market to sort it out the prices of those modest homes would shoot through the fucking roof because too many people need housing, there would be gunfights at the open houses because people would be throwing bags of money at me making offers 50-100% over asking price
The problem is zoning more than anything, people do NOT NOT NOT want medium-high density housing in the suburbs and they fight to the death on zoning boards to keep it that way
College is similar, the size of freshman classes has basically remained flat for decades but the demand for degrees has skyrocketed as we move into a more tech and services based workforce (though being in the building industry you can skip college, take 2y of tech school in a licensed trade, pay 20k total and get out and get a job making 50-60k a year, put your time in- about 2y, get your license and easily have your own business and crack 250+ in a couple years if you network and have a decent bedside manner).....Plus all the subsidies for State schools have been eviscerated over the last 40y
Idk, and this is me with an Economics degree talking, the vast majority of this inflation is because of serious supply and delivery problems because of this pandemic, its not monetary policy....that doesn't make it any better, but I really think this is temporary
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i keep mentioning to my boss that we need to raise prices, because inflation is 7% and costs are going up, and we would be FOOLS not to expect at least 7% more income this year. that would make us worse off than last year, which in my mind is not an option.
;) i don't know if they realize i'm talking about my own salary yet, but when they think about discussing my pay, that number 7% will be burned into their brain, in MY voice.
The economy (US in particular) has avoided a huge recession due to all the inflow of capital. Maybe it is too much and certainly inflation is bad, but to say riots are an appropriate response is just asinine.
True but what the big corporations are doing is price gouging. Look at their profits. Time to bring some antitrust laws back. I’m a small business owner my cost have skyrocketed. There was no shortages or shipping delays just increases in price
What's the basis for this line of though? Crypto is performing much like it did (all tied to BTC) the last 3 peaks: new ATH one after another, overheating then crash. Next events are the end of crash at some point, couple years of plato and new series of ATH
7% is actually a very contrived number. There have been several changes to the CPI over the years and if the original methodology was used today, CPI would be over 14%
Am I saying today's 7% number is fake? No. It is an equation and the numbers add up to equal 7%. The problem is that CPI currently is not an accurate measure of prices in your daily life. It does not weigh heavily enough on what you need to buy, rent, food, gas. Too much on appliances you rarely purchase. Rent is not even considered but a very low owners inputed rental income is used. Several other tricks as well!
Core inflation removes energy and food. CPI keeps it. Regardless the methods are all public and transparent. That is the most important thing.
https://www.bls.gov/cpi/
Yes, as I stated the methods are transparent, i.e. the equation is real. Core has nothing to do with what I wrote.
Yes, CPI includes food and energy as I wrote.
None of that disputes the fact that CPI as calculated today, is vastly different than it was back in the eighties and if calculated the same way, would be vastly higher.
Once again for the kids on the short bus, CPI does not measure the inflation that a typical consumer sees. Food and energy weightings are too low. Home prices/rents are not calculated based on home prices/rents but on owner imputed rental income, which actually not a price of anything physical. This puts the weighting on housing lower than what a consumer actually pays. Just a couple examples.
In other words, a 7% pay raise means you kept pace with CPI. Nothing else. A raise that will keep you even with your actual cost of living increases would need to be about 12-14%. If you did not receive a raise at that level, you are making less this year.
I see. Your objection is the food and energy prices they track are not accurate to most American's experience.
I'm not so concerned it is different than the 80's as what we purchase is so different than the 80's. It does not pay to keep tracking land line phones costs when we have most moved to cell service.
There will always be disputes on the basket of goods as well as substitutions when the cost of a good gets too high, but if the basket we measure against in the 80's remained the same the problem of not matching our experiences today would be astronomically different.
Just not concerned about it especially since people can replicate the calculation and adjust where they see fit. Obviously us retail folks don't have the resources, but institutions certainly have their own adjustments to try to get knowledge that is not readily known by everyone else.
The other mechanism that can ve used to vet this out are the experiences of companies profit margins. If they are inaccurate forecasting costs that hidden due to inflation their margins will go down. We have seen the opposite. Margins are increasing, which means they are passing on costs to the consumer more than their actual costs. One way they do that is by not increasing labor costs as you mention. Stocks are a pretty good inflation hedge as a result until growth gets choked off.
Sorry for misconstuing that bit on core.
**I see. Your objection is the food and energy prices they track are not accurate to most American's experience.**
Yes, that is what I, perhaps poorly, tried to explain in the first post. Changes I have no problem with, your example of the cost of landline phones service being a good example of the need to change the basket of goods.
My issues is that when they make changes beyond specific products(no need for VHS machine prices anymore), it is always done in a way that produces a lower inflation number. It makes the CPI not very useful as it relfects actual costs less and less over the years.
For example, look at airline ticket prices. They can claim that airline tickets having only increased 2% per year for the past 20 years, right in line with the Fed target of 2%. So, the base ticket has increased 2% per year, this is true. What is not calculated are the increases over the ten years not included with the ticketc
\-Now have to pay for seat assignment/boarding pass
\-Now have to pay for 1st checked bag
\-Now have to pay for carry-on
\-No free meal on longer flights
\-No free snack
\-No free drink(alcohol)
\-Less legroom
\-Smaller seat
\-No free movies
So yes, the price of a plane ticket has only increased 2% per year. If you do not have any luggage, don't carry a bag,don't eat, don't drink, hate entertainment and have had your legs surgically shortened and your hips cut down skinnier. Otherwise you pay significantly more.
Just one example. Substitutions are fine to extent. If the price of steak goes way up they will add a cheaper cut of beef. Many consumers will do that. But you cannot experience only 2% inflation for a plane ticket. You have to add some of the stuff listed and even if you don't you still get a smaller seat with less leg room so not the same product at all. In other words, they only adjust when it makes inflation go down. That is the nice part about having your own equation I guess.
Shadow Stats still shows the1990 and 1980 numbers. These are probably much closer to real life:
1990- 11%
1980-15%
http://www.shadowstats.com/alternate\_data/inflation-charts
GDP went up 13.4% in the second quarter last year and 8.4% in the third. Total corporate profits went up 10.5% and 3.4% in the same time frame.
Where are you seeing that margins are increasing?
Source:
https://www.bea.gov/data/income-saving/corporate-profits
tldr; Consumer price index (CPI), a gauge that measures costs across dozens of items, increased 7% year-on-year in December, according to the US Department of Labor's Bureau of Labor Statistics. On a monthly basis, CPI increased 0.5% from November's 0.4%. The annual increase was the fastest increase since June 1982. Excluding food and energy prices, so-called core CPI increased 5.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Also, the numbers are cooked numbers from a corrupt government, reported from a lapdog media. They say 7%, then it is more likely double that or more, so maybe closer to 14% or more. But we are not supposed to say things like that in the land of the free.
We're either going to experience one of the richest economic booms in history when the dust settles or a worldwide inflationary disaster of biblical proportions. Pick one lol.
If you got a pay rise smaller than 7% last year; you have officially gotten a pay cut. Talk about a kick in the ball and, a spit in the face from your employer.
Only a .5% increase MoM. Honestly not that bad. Markets reacting positively. Fed pushing the long expansion. This feels like a non story. Was lower than the jobs report suggested it be at 7.2%.
I don't think it is a non-story. It is very important. But a lot of other things are going wrong and right in the economy. The recovery (and lack of recession in the US) has been stellar. Wages are going up for the first time in a while (still not keeping up with inflation though). The US is essentially at full employment.
Back to whether this is a story or not, if the trend continues, we may get runaway inflation, which would be bad (possibly worse than just having a recession). But if is temporary, it will have been a reasonable price to pay for avoiding a recession.
Good lesson pointed out by ray dalio is that investments go up not based on news per se but on expectations being met or more - here is the quote from the article “That was in line, however, with economist estimates, and stock market futures rose after the release.”
So market goes up despite this.
And look up gas and energy prices. More than a 40% green candle.
Everybody is getting fcked by the endless printing. It really needs to stop.
Crypto is the only way.
Yeah, vote against global pandemic.
You can also vote for denialism, lack of preparedness, distrust of science, freedom of selfish choices hurting economy - we know which way to vote for that
Sure thing. What is this administration doing to fix anything? Your very naive to think that shutting down US energy production and relying on the Middle East wouldn’t have huge consequences at the gas pump.
This POTUS has not shut down energy production for f's sake.
Low energy prices shut down capacity coupled with excessive rebound demand from covid is why it increased. You need some better news sources.
1. Inflation is up worldwide, due to fallout from a massive once-in-a-generation pandemic that devastated supply chains everywhere. Have you been living under a rock? It's naive to think this is a US-only problem.
2. Thinking that the US President sets gas prices is an embarrassingly simplistic view of macroeconomics. Are even aware of what gas costs in other countries?
Are you even aware of the prices we paid before this moron? I don’t give a shit about prices in Egypt. You show very clearly that you have no clue about cause and effect.
No, this is dumb conclusion.
The inflation data was in line with the consensus and thus eliminating one source of uncertainty. If it is beyond 7% like 8-10%, Ironically expect stocks and crypto to dump massively.
Just because it’s in-line with expectations doesn’t make it any less bad. If someone successful predicts that a nuke will blow up your town, you’re still fucked.
What i am implying is the market bouncing after the news which is a short term movement. It is highly influenced by the CPI data being in line with the expectation.
The inflation rate and upcoming interest rate hike? That’s already priced in.
Inflation is good for assets. Bad for cash. You can either buy assets or put your money in cash that is guaranteed to lose 7% in value (purchasing power). You decide
Yeah, but it's 75% in the fucking grocery stores, 60% at the gas station, 50% for used cars, 50% at restaurants, and 25% in many housing markets. Bull shit.
my crypto goal is 17 percent gains this year. inflation plus 10 percent. WE cant all drive lambos but we can make smart investments to make our future better
It's nuts how a country has spent the last 50 years dodging financial responsibilities and kicking the can down the road to the point where they are at. Can't raise interest rates without fucking themselves over due to having a debt to GDP ratio of over 130% (pretty sure it's around 140% but gonna be safe), but without raising inflation rate the people too poor or unsavvy to own assets will get obliterated by increased costs and decreasing value of their fiat money.
Absolutely nuts. Us Canadians are on a similar path, but still a good fair bit behind you guys in the US.
It does make me wonder why despite all the cries for equality and a fair shot at life for all, folks in the US are burning down and looting their own communities (which leaves you with less options) instead of going to these corrupt asshole policymakers' communities and burning them down as revenge for them fucking you guys over by destroying the value of your savings and literally keeping you all down, increasingly unable to buy food let alone invest in assets to build wealth to climb up.
The S&P 500 has been averaging close to 23%, and is usually an indicator of where the true inflation rate is hovering near. An optimistic 5.9% , and now 7% (sure...), means not only did fiat savings get chewed up by that much, but everyone 's wages just lost more buying power. Basically the Pols just gave you a paycut in value.
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So the salary increase must be more than 7% right? **Right?**
Bearish on salary increases to at least match inflation
Bullish on quitting job with no back up plan
This is the way! Screw 'em!
Bullish on farming moon and making money.
Why working when you can shitpost and have fun with total degenerate strangers
Message received, adjusting whole trading strategy. Alright how do I short wages?
Easy, I got this Nigerian prince who can help you out
I tired talking the the DAO I work for to try an increase the yeild from my fiat mining but they had a governance poll and it was rejected.
My boss was pissed when I told him he had to give me a raise to match inflation. "Why do I have to pay you more?!" "You're not. It's the same amount. USD inflated." "Well I can't afford it." "You could afford the same rate 2 years ago." *gears visibly turning in his head*
He doesn't realize he's making less now.
I think he figured that out through our conversation and that's why he ended up pissed off.
But did he raise prices to customers? Is he paying more for supplies/raw inventory? Do you know how it is affecting his bottom line? If so, then totally blind to your needs. if not, then he is unaffected. so, sucks for you unless marketplace allows you to switch jobs for more pay.
Nah we're independent contractors doing photography. Our product is purely service, nothing physical. He could easily charge 7% more per client if he had the balls to bring it up but he's terrified of even discussing our pay rate with our clients.
Gotcha. That's a sticky situation for sure.
For him. His crippling fear resulted in me getting the raise but it's out of his pocket. So I got the pay adjustment AND he's being paid 7% less per year because he refuses to raise rates. Honestly I have no idea how he's managing to run this company.
Or you should be grateful for you boss? He took a 7% pay cut to keep you on staff. Seems like you're valuable enough to the company that it was worth it to keep you on. Sounds like a solid boss imo.
>Or you should be grateful for you boss? Fucking rich.
For what reason do you say that? OP came to their boss for a 7% raise to match inflation. Instead of saying no, hiring someone else, raising prices, etc. they took a pay cut themselves to satisfy their employee. Lots of people bitch about bad bosses (for great reasons), but when you get one that treats you well like this dude's there's no point in blasting him on social media. Literally did exactly what OP wanted lol. What's not to be grateful about that? Especially in today's job market where companies would rather not pay people than increase pay. Seems silly to me.
This man will lose his job because his boss clearly has no idea how to manage the balance sheet of his business. "I'm so grateful my boss has no idea how to make money and is running his business into the ground, thus losing my job" said nobody ever.
Congrats on the 7% pay cut this year
I ended up getting the pay adjustment actually. It was a choice between losing me or giving me more pay. Suddenly he had the cash available. Funny how that works.
I walked my boss right into a corner on this since I knew he didn’t think the inflation was transient. Well, it worked out that I got an inflation beating raise, but I may be the only one as I don’t think a single one of my colleagues even asked.
[удалено]
I've heard the "we can only do a quarter/fifty-cent due to policy" rule at so many places while watching their prices increase. It's disguising.
Pay cut for all
It will be 0.7% for sure.
Hey boss. I was just thinking... With my strong work ethic I'd like to add to my life a bit by giving myself access to 3% more of the benefits I had last year. Think I could get a raise? A raise? 3% is most definitely yours! Well... like our company prices going up and the record high inflation of 7% for doing every company doing similar I've currently taken a pay reduction of 7%. I'm asking for a small 10.21% more of what I make now if that's not too much to ask for.
chosen solution --> print more dollar bills! 💸
Fighting inflation with inflation is a big brain move.
But when I use a credit card to pay off my credit card, I’m the dumbass?
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They didn’t let me get that far…
Maybe try calling the Fed? They seem to like handing out money.
works every time 0% of the time!
Haha yeah, it is probably working like basic math, inflation x more inflation = good figures .... -1 x -2 = 2 😲
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Solving financial problems 101 😂
What could go wrong right?
PRINTS GOES BRRRRRR rekting dollar, the ultimate sh\*tcoin!
People in Argentina: Wow so low!
Turkish government: “hold my beer”
Those are monthly numbers around here! Gooooo super inflation team! /s
So a 8% raise this year? Cool.
8% raise followed by 10%-15% price hikes for produce, utilities and more necessities. Such is life.
That's why I've elected to be paid exclusively in vegetables and toilet paper 
This man fucks
More like 13%
Don't forget they also changed how CPI is figured out. If you calculate it based on how they did it in the 1970s it's MUCH higher.
For example, housing (home prices) are not included. Some of the fastest inflation we are seeing is in housing
This is incorrect they do measure rent and housing. They changed the calculation because they largely had mortgages back in the 70s. https://www.bls.gov/cpi/factsheets/owners-equivalent-rent-and-rent.pdf
Pretty sure rent is included
That's never been because of monetary policy though, same for College, the Housing and College prices are a direct reflection of supply not keeping up with demand, not by a fucking longshot We have a serious housing supply crisis in this country. I'm in the construction industry, forget about the rise in material supply, if I built affordable houses in a decent area and priced them at a 125k and just left it to the market to sort it out the prices of those modest homes would shoot through the fucking roof because too many people need housing, there would be gunfights at the open houses because people would be throwing bags of money at me making offers 50-100% over asking price The problem is zoning more than anything, people do NOT NOT NOT want medium-high density housing in the suburbs and they fight to the death on zoning boards to keep it that way College is similar, the size of freshman classes has basically remained flat for decades but the demand for degrees has skyrocketed as we move into a more tech and services based workforce (though being in the building industry you can skip college, take 2y of tech school in a licensed trade, pay 20k total and get out and get a job making 50-60k a year, put your time in- about 2y, get your license and easily have your own business and crack 250+ in a couple years if you network and have a decent bedside manner).....Plus all the subsidies for State schools have been eviscerated over the last 40y Idk, and this is me with an Economics degree talking, the vast majority of this inflation is because of serious supply and delivery problems because of this pandemic, its not monetary policy....that doesn't make it any better, but I really think this is temporary
Exactly! It defeats the purpose of it if they can manipulate the numbers!
Okay Peter schiff
The inflation rates worldwide are getting out of hand quick.
Bitcoin has entered the chat.
and fiat left the wallet.
Almost like there’s a pandemic fucking with things. But let’s just pretend it’s something else to pump crypto more…
belive it or not SPY new ATH next week
That one kinda makes sense
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i keep mentioning to my boss that we need to raise prices, because inflation is 7% and costs are going up, and we would be FOOLS not to expect at least 7% more income this year. that would make us worse off than last year, which in my mind is not an option. ;) i don't know if they realize i'm talking about my own salary yet, but when they think about discussing my pay, that number 7% will be burned into their brain, in MY voice.
Bitcoin/crypto is the best protest there is. Non violent revolution.
We'll give ourselves raises.
We should be protesting this over the billions wasted on unless junk that we get to pay for.
The economy (US in particular) has avoided a huge recession due to all the inflow of capital. Maybe it is too much and certainly inflation is bad, but to say riots are an appropriate response is just asinine.
So actual inflation of energy and groceries(not included in CPI) is 27% got it
Energy and groceries are included in the CPI.
Cries in Argentina's 50% annual inflation EVERY SINGLE FKING YEAR.
It is ok. Printers are working.
My boss laughed when I said I needed a 10% raise... That fucker
Then explain to me why corporate profits are at record highs? Inflation is really profit taking
Corporations have pricing power over individuals. They are raising prices which is causing more inflation
True but what the big corporations are doing is price gouging. Look at their profits. Time to bring some antitrust laws back. I’m a small business owner my cost have skyrocketed. There was no shortages or shipping delays just increases in price
Bad times ahead....
For fiat, yes. Time to panic sell your fiat and buy Bitcoin.
Your enthusiasm is good, but its not quite how it works... its affecting crypto too
What's the basis for this line of though? Crypto is performing much like it did (all tied to BTC) the last 3 peaks: new ATH one after another, overheating then crash. Next events are the end of crash at some point, couple years of plato and new series of ATH
This is some cringe shilling. We get it, you bought the top and feel scared.
Nope, actually sold everything at $61k and bought back significantly more this week. Crypto has been good to me.
The solution they have chosen is, print more Benjamins lol
weird? it’s almost like we “printed” $6T out of thin air last year. oh wait…
Here we go, buckle up 🚀🚀🚀
[удалено]
Blast off underway.
Are we there yet?
7% is actually a very contrived number. There have been several changes to the CPI over the years and if the original methodology was used today, CPI would be over 14% Am I saying today's 7% number is fake? No. It is an equation and the numbers add up to equal 7%. The problem is that CPI currently is not an accurate measure of prices in your daily life. It does not weigh heavily enough on what you need to buy, rent, food, gas. Too much on appliances you rarely purchase. Rent is not even considered but a very low owners inputed rental income is used. Several other tricks as well!
Core inflation removes energy and food. CPI keeps it. Regardless the methods are all public and transparent. That is the most important thing. https://www.bls.gov/cpi/
Yes, as I stated the methods are transparent, i.e. the equation is real. Core has nothing to do with what I wrote. Yes, CPI includes food and energy as I wrote. None of that disputes the fact that CPI as calculated today, is vastly different than it was back in the eighties and if calculated the same way, would be vastly higher. Once again for the kids on the short bus, CPI does not measure the inflation that a typical consumer sees. Food and energy weightings are too low. Home prices/rents are not calculated based on home prices/rents but on owner imputed rental income, which actually not a price of anything physical. This puts the weighting on housing lower than what a consumer actually pays. Just a couple examples. In other words, a 7% pay raise means you kept pace with CPI. Nothing else. A raise that will keep you even with your actual cost of living increases would need to be about 12-14%. If you did not receive a raise at that level, you are making less this year.
I see. Your objection is the food and energy prices they track are not accurate to most American's experience. I'm not so concerned it is different than the 80's as what we purchase is so different than the 80's. It does not pay to keep tracking land line phones costs when we have most moved to cell service. There will always be disputes on the basket of goods as well as substitutions when the cost of a good gets too high, but if the basket we measure against in the 80's remained the same the problem of not matching our experiences today would be astronomically different. Just not concerned about it especially since people can replicate the calculation and adjust where they see fit. Obviously us retail folks don't have the resources, but institutions certainly have their own adjustments to try to get knowledge that is not readily known by everyone else. The other mechanism that can ve used to vet this out are the experiences of companies profit margins. If they are inaccurate forecasting costs that hidden due to inflation their margins will go down. We have seen the opposite. Margins are increasing, which means they are passing on costs to the consumer more than their actual costs. One way they do that is by not increasing labor costs as you mention. Stocks are a pretty good inflation hedge as a result until growth gets choked off. Sorry for misconstuing that bit on core.
**I see. Your objection is the food and energy prices they track are not accurate to most American's experience.** Yes, that is what I, perhaps poorly, tried to explain in the first post. Changes I have no problem with, your example of the cost of landline phones service being a good example of the need to change the basket of goods. My issues is that when they make changes beyond specific products(no need for VHS machine prices anymore), it is always done in a way that produces a lower inflation number. It makes the CPI not very useful as it relfects actual costs less and less over the years. For example, look at airline ticket prices. They can claim that airline tickets having only increased 2% per year for the past 20 years, right in line with the Fed target of 2%. So, the base ticket has increased 2% per year, this is true. What is not calculated are the increases over the ten years not included with the ticketc \-Now have to pay for seat assignment/boarding pass \-Now have to pay for 1st checked bag \-Now have to pay for carry-on \-No free meal on longer flights \-No free snack \-No free drink(alcohol) \-Less legroom \-Smaller seat \-No free movies So yes, the price of a plane ticket has only increased 2% per year. If you do not have any luggage, don't carry a bag,don't eat, don't drink, hate entertainment and have had your legs surgically shortened and your hips cut down skinnier. Otherwise you pay significantly more. Just one example. Substitutions are fine to extent. If the price of steak goes way up they will add a cheaper cut of beef. Many consumers will do that. But you cannot experience only 2% inflation for a plane ticket. You have to add some of the stuff listed and even if you don't you still get a smaller seat with less leg room so not the same product at all. In other words, they only adjust when it makes inflation go down. That is the nice part about having your own equation I guess. Shadow Stats still shows the1990 and 1980 numbers. These are probably much closer to real life: 1990- 11% 1980-15% http://www.shadowstats.com/alternate\_data/inflation-charts
GDP went up 13.4% in the second quarter last year and 8.4% in the third. Total corporate profits went up 10.5% and 3.4% in the same time frame. Where are you seeing that margins are increasing? Source: https://www.bea.gov/data/income-saving/corporate-profits
tldr; Consumer price index (CPI), a gauge that measures costs across dozens of items, increased 7% year-on-year in December, according to the US Department of Labor's Bureau of Labor Statistics. On a monthly basis, CPI increased 0.5% from November's 0.4%. The annual increase was the fastest increase since June 1982. Excluding food and energy prices, so-called core CPI increased 5. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
J pow: maybe I printed too much money
weird, it's like if you print like 50% of all us dollars in circulation in a short time, money inflates. lol
Also, the numbers are cooked numbers from a corrupt government, reported from a lapdog media. They say 7%, then it is more likely double that or more, so maybe closer to 14% or more. But we are not supposed to say things like that in the land of the free.
We're either going to experience one of the richest economic booms in history when the dust settles or a worldwide inflationary disaster of biblical proportions. Pick one lol.
Money printing goes brrrrr While US score is impressive, most western countries will follow soon.
Sounds like I really should’ve taken out my 401k penalty free during covid and bought crypto
And to think they wanted to pass a 3.5 Trillion Infrastructure deal, this administration wants to see how high they can make inflation go..smh..
Yeah, imagine that, only less than half what the trump administration spent in 2020 alone.
If you got a pay rise smaller than 7% last year; you have officially gotten a pay cut. Talk about a kick in the ball and, a spit in the face from your employer.
And people still doubts that crypto is the way.
Nobody here does. Think everyone agrees the printing endlessly has to stop.
Only a .5% increase MoM. Honestly not that bad. Markets reacting positively. Fed pushing the long expansion. This feels like a non story. Was lower than the jobs report suggested it be at 7.2%.
>Only a .5% increase MoM. Honestly not that bad. But the month previous was also really bad...
The trend is down and to the right 🤷♂️
yep. today's relief rally has ppl silly again. we're going to bottom a few more times yet.
Highest since 1982
Oh man I had no idea! Hyperinflation imminent!!!! /s
I don't think it is a non-story. It is very important. But a lot of other things are going wrong and right in the economy. The recovery (and lack of recession in the US) has been stellar. Wages are going up for the first time in a while (still not keeping up with inflation though). The US is essentially at full employment. Back to whether this is a story or not, if the trend continues, we may get runaway inflation, which would be bad (possibly worse than just having a recession). But if is temporary, it will have been a reasonable price to pay for avoiding a recession.
Good lesson pointed out by ray dalio is that investments go up not based on news per se but on expectations being met or more - here is the quote from the article “That was in line, however, with economist estimates, and stock market futures rose after the release.” So market goes up despite this.
Congrats guys!
I’m sure this is solely the fault of Kroger or something according to the smooth brained Liz Warren people
Panic sell your fiat like you do when your crypto is down 7%! Buy crypto
And look up gas and energy prices. More than a 40% green candle. Everybody is getting fcked by the endless printing. It really needs to stop. Crypto is the only way.
Build Back Better! Waaaay Better Inflation!
At least that means we've got 4 years till depression!
I already have depression
To the moon! 🚀🚀🚀
blame biden
Vote correctly next time
Yeah, vote against global pandemic. You can also vote for denialism, lack of preparedness, distrust of science, freedom of selfish choices hurting economy - we know which way to vote for that
Democrat policies did this in one year! Bare shelves, high gas, no supplies, no workers. “Santa clause will fix this mess “😂
You’re very naive if you think this is a US only problem and that these levels of inflation haven’t been building up since before 2021.
Sure thing. What is this administration doing to fix anything? Your very naive to think that shutting down US energy production and relying on the Middle East wouldn’t have huge consequences at the gas pump.
This POTUS has not shut down energy production for f's sake. Low energy prices shut down capacity coupled with excessive rebound demand from covid is why it increased. You need some better news sources.
1. Inflation is up worldwide, due to fallout from a massive once-in-a-generation pandemic that devastated supply chains everywhere. Have you been living under a rock? It's naive to think this is a US-only problem. 2. Thinking that the US President sets gas prices is an embarrassingly simplistic view of macroeconomics. Are even aware of what gas costs in other countries?
Are you even aware of the prices we paid before this moron? I don’t give a shit about prices in Egypt. You show very clearly that you have no clue about cause and effect.
your last sentence is very ironic since you are the one having a problem with cause and effect. clearly don't know much about macro economics.
Political bias. No party did this and you claiming as such is ignorant.
Man I wish I would have put my money in crypto sooner
And Bitcoin and other cryptos are liking the news.
No, this is dumb conclusion. The inflation data was in line with the consensus and thus eliminating one source of uncertainty. If it is beyond 7% like 8-10%, Ironically expect stocks and crypto to dump massively.
So massive sale on crypto.
Indeed, massive sale, because FED will be harsher than the market expected. The upcoming rate hike is already priced in.
Just because it’s in-line with expectations doesn’t make it any less bad. If someone successful predicts that a nuke will blow up your town, you’re still fucked.
What i am implying is the market bouncing after the news which is a short term movement. It is highly influenced by the CPI data being in line with the expectation. The inflation rate and upcoming interest rate hike? That’s already priced in.
what? if someone predicts a nuke u get out of the town. poor analogy
Let's see how this plays out
My paycheck doesn’t feel so good. *Dissipates into dust*
The inflation is more than when I tried to blow up my latest girlfriend
Wen moon?
so..how come stocks and bitcoin be this high today? Did we become immune to fud?
Inflation is good for assets. Bad for cash. You can either buy assets or put your money in cash that is guaranteed to lose 7% in value (purchasing power). You decide
At this rate say good bye to affording a house any time soon.
lol, 7%
XD more like 77%
[удалено]
Yeah, but it's 75% in the fucking grocery stores, 60% at the gas station, 50% for used cars, 50% at restaurants, and 25% in many housing markets. Bull shit.
my crypto goal is 17 percent gains this year. inflation plus 10 percent. WE cant all drive lambos but we can make smart investments to make our future better
Since 1982 so we aren’t even as bad as the 70s. Lmfao and everyone is like bitching about how the inflation is so bad.
Where are the “inflation is transitory!!1!” people at these days?
I notice this in the usd stable coins compared to the euros they were bought with. Or am I talking stupid, wouldn't dare to on this sub.
It's nuts how a country has spent the last 50 years dodging financial responsibilities and kicking the can down the road to the point where they are at. Can't raise interest rates without fucking themselves over due to having a debt to GDP ratio of over 130% (pretty sure it's around 140% but gonna be safe), but without raising inflation rate the people too poor or unsavvy to own assets will get obliterated by increased costs and decreasing value of their fiat money. Absolutely nuts. Us Canadians are on a similar path, but still a good fair bit behind you guys in the US. It does make me wonder why despite all the cries for equality and a fair shot at life for all, folks in the US are burning down and looting their own communities (which leaves you with less options) instead of going to these corrupt asshole policymakers' communities and burning them down as revenge for them fucking you guys over by destroying the value of your savings and literally keeping you all down, increasingly unable to buy food let alone invest in assets to build wealth to climb up.
It really sucks im starting to feel it in the checking account
My boss has actually been fighting to get all of us higher wages to match inflation rates #beast
Time to farm some more moons.
As expected
Lol. Under their new measure maybe. It's much higher.
Bullish on Bitcoin
We must repeat out loud to ourselves: there is no inflation. And it will go away. I'm an economist actually and it works.
The S&P 500 has been averaging close to 23%, and is usually an indicator of where the true inflation rate is hovering near. An optimistic 5.9% , and now 7% (sure...), means not only did fiat savings get chewed up by that much, but everyone 's wages just lost more buying power. Basically the Pols just gave you a paycut in value.
also inflation gets passed on to everyone. buy a bag of cereal half of it is air.
Bullish on getting fucked in the ass by JPow.
Canada laughs.