Inflation Explained by a Monetary Researcher

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• Wrufieotnak@feddit.org ⁨3⁩ ⁨hours⁩ ago

  OK, after checking the YouTube comments, I will just leave this exchange of comments here and let you decide for yourself if that sounds like a person you would like to hear more of:

  Comment by inchristalone2026

  I’m a master at mitigating the effects of inflation so I can continue saving. I mention $5 for greens at the store, I don’t buy it. I go to the store each day when doing errands to get the expiring stuff discounted. And my food costs are low due to this. But you can only mitigate so far - I would make the most miserly person dizzy with my frugality. But it’s poverty, inflation impoverishes us all and diminishes our standard of living. I am at the bottom, I am the poorest of the working poor and receive no money from the state. I don’t have insurance, a family, etc. How do you think inflation effects the working poor? You can mitigate but something will eventually break.

  Answer by econ lessons:

  You are doing well, in your life. You may see yourself as poor but many people with large income are highly in debt. Do not look at absolute numbers but look at your debt to income. I bet you do not have debt. I bet your income is greater than your expenses. To me your a winner. The only think you have to increase is the income and you will leave the big spenders in the dust because of your frugality and self control. Something they might never have. Income, maybe Youtube 3 times a week on positive up beat entertaining topics and if you make 100k and spend 20k a year and invest in an ETF equity fund, you will be a multimillionaire in less than a decade with some luck

  Original comment of mine: Interesting, and the summary I agree with, but I certainly do not agree with the inbetween points he raised.

  People can always rationally react to inflation and mitigate the effects by substitution

  That is such a “rich person explaining why the poor’s are too stupid” moment. Nice that he has a metric ton of potato in his garage. What are those people meant to do, that don’t have a garage but rent an apartment? And I’m not even talking about the liquidity needed to buy that amount of food as storage in the first place. And not knowing that industrially processed food is often the cheapest available is also prime “what can a banana cost” material.

  And also what kind of bullshit economist is he, that he thinks energy prices aren’t effecting farmers who then sell their products at higher prices?? Short of complete subsistence farming your own food, you will always be affected by increase of energy prices, as everyone needs that for their work.

  And at a certain point you cannot substitute stuff away. If cake is too expensive, sure you can get bread. If bread is too expensive you can get the cheap bread which isn’t as healthy to you. But at a certain point you cannot substitute more, because you already exist at the minimum.

  And interesting to hear that he thinks a little bit of deflation is good. That is certainly counter to all economist thoughts I have heard (admittedly that doesnt mean much, as I didn’t study it). Deflation means you can buy more tomorrow if you don’t buy today. So why should people buy anything and invest their money if its worth more if they wait. He explains the reasoning why inflation is wanted by the governments in the summary, so I’m surprised he doesnt see the benefits.

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