AOC says inflation is propaganda

So inflation is a regressive thing. People who own assets that keep up with/beat inflation, like homes, investment accounts, Treasury bonds, etc... are also mostly the people who have jobs that increase compensation to cover inflation plus a bit extra.

You're not entirely wrong. I bought a home in 2021 at 2.75% interest that is now worth 100k more. My compensation has increased by 37% over the same period and my investment accounts have done OK. We're not the ones that inflation hurts. Inflation simply lowers the cost of my long term debts and only minimally increases things like food and energy that tbh I don't even have a real budget for because a 10% increase doesn't really matter.

You're not looking at this through the lens of the people you try to champion. You think the house cleaner at your neighbors house got a 5% raise this year? Probably not as they have no leverage. But if they did it won't help. They don't own assets. Their rent increased 15% this year. Food is ~25% more expensive than a few years ago. Utilities are up at least 5%.

If you make 1000 a week and it's now 1050 but rent is 250 more a month there goes your entire raise. This doesn't even cover things like more savings for retirement, health insurance costs, anything else.

As another example, my new neighbor just closed on their house last week. It's virtually the same as mine. With today's interest and real estate prices he'll be paying roughly 1.9x my monthly mortgage payment. I don't think 50 dollars a week will cover that.

 

Increased since when ATL? What time frame are you talking about and what group of items are you talking about? If you think my argument is we have had 3% inflation since 2019 you missed the point. The comment War made was "over the last year" and the data supports that claim... and you can clearly see it in the report. It's hard to keep you all focused. No one has offered up anything disputing the number over the last year other than faux fainting spells.

 

You didnt say this but it's funny that people complain about rising pay in the bottom tier as driving more inflation so they conclude rising wages is bad .. but when most of the increase comes from profits that goes to the top tier no one talks about inflation in that sense. The bottom got historic raises this cycle, more than other income group, however large percentages at the bottom making people slightly less broke doesnt make anyone really happy.

 

all bloviating, no reading comprehension and zero points made. You are probably mesmerized by watching grass grow, so I take no credit for your fawning over my posts.

Keep trying. Perhaps focus your attention on trying to make a point. #hugsforeffort.

 

everyone has, but you’re too busy with your cranium probing your sphincter to pay attention.

 

Great post, but don’t forget about the 50 million retired people who don’t get raises because…..well….they’re retired. Those folks have high voter turnout.

 

Still laughing. $6 on $200 in groceries!!!!

Your island of people thinking a typical families groceries only went up $6 is the size of a phone booth.

 

Inflation is typically not positive for stocks. It wasn’t really this time, and certainly wasn’t in the 70’s. Higher rates lead to lower multiple due to higher discount rates.

Inflation is absolutely not good for bond holders. Earning 1.5% on a 10 year bond when inflation is 9% isn’t a winning proposition.

Homes are a mixed bag. Houses appreciate with inflation but higher interest rates raise future mortgage rates and slow home sales, which depresses prices.

 

You haven’t posted anything of value and now more of nothing. I’ve offered plenty of data. You’re a fraud Uf”Lawyer”.

 

totally. that is why I am a bit surprised that the S&P still has a P/E of 25. with int rate like this I'd expect the teens. 2nd 1/2 of the 70s, they were single digits....don't really know what to make of it.

 

oh man, now you crushed my ego. What to do…what to do…..

I shall remind you that you still lack the reading skills.

 

Wow. Insults and memes. What will I do? Zzzzzz

 

how about you read?

 

Read what?

 

Well longer term rates aren’t that high compared to history.

 

I guess that means the mkt see rates coming down soon....Let's hope...I'm looking to buy an investment property with the hope that rates drop

 

@citygator Let’s start at this insult to Biden

you see how that little graphy thingy starts down low when Biden got anointed, then climbs like Mt Fuji? I’m guessing 23%, give or take, which is consistent with other fungible items. Gas isn’t included in your CPI, but everyone has to buy it…that’s up 90%.

The problem with using the CPI to measure “inflation” is that it fails to take into account “normal” consumer spending. It uses too broad a matrix. The average family of 4 goes to the grocery and buys cereal, eggs, milk, bread, chicken….every week. You want to tell them that inflation was only 3% because there was no increase on the price of Kiwis, bean curds and crab legs, and a decrease in the price of gluten free flour. But most people don’t buy those goods, so they don’t care.

multiple posters here are telling you that your conclusions are not consistent with their reality. People judge the economy based upon their own spending and the balance in their own bank accounts, not the CPI. Bidenomics is failing the people, just like your argument.

 

You realize that CPI takes that into account, right? They weight based on how much of the standard shopping basket something is. So flour is only worth 0.062% because it isn't a common purchase. The lowest inflation items over the last year were pork, chicken, fresh fish and seafood, eggs, milk, cheese, citrus, tomatoes, butter, and prepared salads, all of which saw their price drop in the last year. Perhaps, next time, you should actually look at the data before spouting off about what it says.


Table 2. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by detailed expenditure category - 2023 M08 Results

 

wow, another sheep just espousing the company line, and missing the point entirely. Here are a few bullet point truisms you and you brother mutton can argue about:

1. The vast majority of Americans do not consider the CPI when determining their financial well being.

2. The vast majority os Americans do consider their own bank account when determining their financial well being.

3. A family (Jones) that buys only chicken, milk, cereal, bread and cheese every week at the grocery store do not care about the prices of kumquats, sardines, dry active yeast and soy milk.

4. The prices of kumquats, sardines, dry active yeast and soy milk are irrelevant to the actual inflationary impact on the Jones.

5. If all other things are the same from year to year, the Jones have experienced inflation if they have less disposable income at the end of the year, completing independent of the CPI.

6. The CPI is meaningless to determine the actual impact of inflation on the Jones.

7. All politics are personal.

 

But muh prepared burrito cost easily 25% more. HyPerInFLaTiOn.