Inflation is your fault

[Anonymous]

“You would think, with prices as high as they are, that Americans would have tempered their enthusiasm for shopping of late; that they would have pulled back spending on luxury items; that they would have sought out budget and basic options, bought smaller packages, fewer things.

This is not what has happened. Consumer spending rose 0.2 percent, after accounting for higher prices, in October, the most recent month for which the government has data. Online shopping jumped 7.8 percent over the Thanksgiving long weekend, more than analysts had anticipated. The sales of new cars, dishwashers, cruise vacations, jewelry—all things people tend to give up when they are watching their budget—remain strong. Consultants keep anticipating a recession precipitated by the “death of the consumer.” Thus far, the consumer is staying alive.



https://www.theatlantic.com/ideas/archive/2023/12/inflation-prices-buying-habits/676191/


After years of being told there’s no inflation, wait, there’s some inflation, wait- inflation is good, now we are causing inflation. Unbelievable.

[Anonymous]

I look forward to how this writer’s opinion is going to somehow be the fault of Biden.

[Anonymous]

I’ve been telling my husband this for a couple years now. No one in our neighborhood/circle of people seems to give a hoot about inflation except. New cars, home renos and luxury travel are full steam ahead. It’s so gaudy.

[Anonymous]

^ except US. (Inflation has only made us save more as we watch the purchase power of our retirement savings decline.)

[Anonymous]

I am not sure where the author is wrong, to a degree.

Things had been about the same since the 2008/2009 market crash, low inflation, consistent job growth etc. Then with COVID, things shut down in 2020, breaking supply chains and massive layoffs.

2021 saw the release of the vaccine, and people going back to work etc. With that came inflation as jobs were restored and the economy grew again.

2022 and 2023 have seen job growth and wage growth outpace inflation. Sure, the grocery store is more expensive, but for a lot of people, wage growth kept pace, so here we are.

[Anonymous]

I’m doing my part. I buy nothing unless I actually need it. Wages have not kept up for us. No increase for my husband and I’m in a field where most people will price shop and try to negotiate lower prices with me. Many of my peers are closing their businesses.

[Anonymous]

Got a kid in college. We have been living frugally. But yeah, seeing a lot of heavy consumeristic behavior by others which I can't understand. I do however think that a lot of it can and should be tapering off, like the home remodels for work-from-home etc.

[Anonymous]

I mean isn’t spending money good for the economy?

And how is it that consumers spending money is causing inflation?

[Anonymous]

There are two economies. The rich have gotten richer, thanks to the Federal Reserve inflating asset values for over a decade.

UMC and UC are spending from their generous portfolio and RE gains.

Everyone else is struggling to get by.

[Anonymous]

Anonymous wrote:There are two economies. The rich have gotten richer, thanks to the Federal Reserve inflating asset values for over a decade.

UMC and UC are spending from their generous portfolio and RE gains.

Everyone else is struggling to get by.

Except wages at the lower end are way up and it is a buyers market in terms of job searches, so many people have been able to upgrade their situations post-covid. So I wouldn't say "everyone else" - yes there are still a lot of people struggling. They were struggling before and are struggling now. The GOP expects them to pull themselves up by their bootstraps.

At least the dems are trying to help.

[Anonymous]

Anonymous wrote:I mean isn’t spending money good for the economy?

And how is it that consumers spending money is causing inflation?

Consumer demand outpacing supply is a primary cause of inflationary pressure. Consumers had excess cash in hand from 2020 through 2022 to spend on goods that weren't being replenished at the rate of demand. There are other factors as well but supply and demand is the most direct cause of changes in the price of goods over time. Higher interest rates and a tightening in the credit market have lessened the amount of cash consumers are willing and able to spend and we're starting to see those impacts on the rate of inflation.

[Anonymous]

It’s how people have been complaining about the price of gas for as far back as I remember. Then they go buy an even bigger gas guzzler car. The consumer keeps on buying.

I was thinking of a home renovation project and called my contractor, but he is booked up 18 months out!

[Anonymous]

How can we explain this?

[Anonymous]

I'm puzzled by this too OP; we've cut back eating out to almost zero, are more careful with groceries, and while I'm still buying gifts I've really cut back on shopping as well overall.

Who are all these people complaining but spending money they don't have? They are why interest rates and prices keep going up! Companies have realized they can just price gouge people.

[Anonymous]

Anonymous wrote:I'm puzzled by this too OP; we've cut back eating out to almost zero, are more careful with groceries, and while I'm still buying gifts I've really cut back on shopping as well overall.

Who are all these people complaining but spending money they don't have? They are why interest rates and prices keep going up! Companies have realized they can just price gouge people.

We really need a spending boycott. The gouging is sick.