Inflation is Through the Roof - Whats Biden Admin's First Priority? Stockholders, of course!

[ultimatebob]

Given that wage growth is outpacing inflation, I don't see what the issue is unless you're just looking for something to complain about.
Personally, I'm stoked that my income and assets are all up strongly this year. And that tens of millions of other Americans are experiencing the same. This is a big growth opportunity for many. And if the cost for that is slightly higher prices, that does not seem to be in any way unusual or unexpected.
Or would the OP prefer the wage stagnation that he used to complain about? Was he just completely clueless as to what would happen if wage stagnation ended?

I guess that I wouldn't be as worried about the price of my $15 BBQ sandwich and $14 cocktail (again, more real life examples of things that cost me 15% more this week than they did a just year ago) if I just got a big raise to back it up. It hasn't arrived yet, though.

 

[Lanyap]

This inflation is showing up everywhere, though. For example, it suddenly costs $20 more to get my cat groomed, and my haircut is now up to $19.

I don't believe for a second that those price increases are temporary and are going to go down.

Hell... I can sell my 2018 Mustang GT used right now for $37,000, which is almost what I paid for it NEW. Prices are soooo screwed up right now!

I would speculate that small businesses like groomers raised their prices to make up for losses due to the pandemic.

Anyway, why pay $20+ for cat grooming. Just let kitty lick themselves for cleaning.

 

[woolfe9998]

Yes exactly, because the average American is a net debtor and inflation reduces the real value of debt.

If rising prices are bad then 2009 and early 2020 must have been great because we experienced declining prices.

Yes, that is one reason. There are other pros and cons from what I've read.

I think it was Keynes who said that a deflationary trend is seen as continuously declining prices by consumers, who will then defer their purchase in hopes of getting a better deal later on. Which then reduces economic growth and costs jobs.

 

[ultimatebob]

I would speculate that small businesses like groomers raised their prices to make up for losses due to the pandemic.

Anyway, why pay $20+ for cat grooming. Just let kitty lick themselves for cleaning.

That question requires a lengthy back story

12 years ago, I adopted a Persian cat from a relative who was allergic to it. It's not really my kind of cat (I like short haired low maintenance mouse chasing cats), but I figured that I've give it a whirl. I quickly learned that Persian cats are kind of a freak of nature, as they've been bred to have hair so long that they cannot properly groom themselves. If they try, their coat becomes a matted mess and they leave furballs all over the place. Therefore, you either have to brush them twice a week (which my cat hates), or you need to give them a Lion Cut annually. Basically, they shave all of his fur except for his head, feet, and a little ball on his tail. It looks cute, but it really has a useful purpose as well.

He liked the Lion Cut, as he can actually wash himself properly now. I've been doing that annually since I've had him.

Lion Cuts from a good pet groomer aren't cheap. I paid more than $100 for the last one, which (again) was $20 more than it was last year. I think that that price increase has more to do with the increase in the Connecticut minimum wage than anything else.

 

[dainthomas]

Inflation is due to limited supply caused by the supply chain getting fucked by rona. Which conservatives are trying their damnedest to drag on and on.

It's almost like OP gets off on being hilariously wrong.

 

[JEDIYoda]

Paying 3-4% more for everyday goods is a good thing!

Okay Bernie

As opposed to not being able to pay at all for goods due to inflation that was coming due to Trumps mismanagement of things....hmmmm

 

[Vic]

I guess that I wouldn't be as worried about the price of my $15 BBQ sandwich and $14 cocktail (again, more real life examples of things that cost me 15% more this week than they did a just year ago) if I just got a big raise to back it up. It hasn't arrived yet, though.

Sometimes getting a big raise requires switching employers, usually because most employers are unlikely to give out raises if they don't have to.

 

[Vic]

Yes, that is one reason. There are other pros and cons from what I've read.

I think it was Keynes who said that a deflationary trend is seen as continuously declining prices by consumers, who will then defer their purchase in hopes of getting a better deal later on. Which then reduces economic growth and costs jobs.

The worst part about deflation IMO is that it discourages all investments except for cash, which has no intrinsic value of its own.
While OTOH the current economic environment of moderate inflation and low interest rates is the ideal recipe for investment growth. Case in point: even used cars can be good investments right now.

 

[NWRMidnight]

Fuel prices are the main cause for prices to sky rocket. Every industry is effected by fuel prices, some more than others, but it is the main influence on our rising prices today, second is the shortages and shipping issues.

 

[Zorba]

Doesn’t he claim to work in finance or something? If so, how can he get away with this level of ignorance and incompetence?

I've met plenty of finance people that don't understand even basic ideas like time value of money.

 

[Zorba]

Yup. This is allllll normal. It's just cars! duh!

milk, eggs, gas, cheese, bacon - who uses such luxuries anyhow?!

View attachment 47152

Year over year, when food and hotels and airfare were very depressed. Car rental is a massive supply issue.

 

[fskimospy]

I've met plenty of finance people that don't understand even basic ideas like time value of money.

In my experience finance people are some weird mix of incredibly capable people and some of the dumbest mouth breathers I’ve ever encountered.

 

[ondma]

Given that wage growth is outpacing inflation, I don't see what the issue is unless you're just looking for something to complain about.
Personally, I'm stoked that my income and assets are all up strongly this year. And that tens of millions of other Americans are experiencing the same. This is a big growth opportunity for many. And if the cost for that is slightly higher prices, that does not seem to be in any way unusual or unexpected.
Or would the OP prefer the wage stagnation that he used to complain about? Was he just completely clueless as to what would happen if wage stagnation ended?

Hate to tell you, but there are a lot of people who dont have a lot of "assets" to go up in value like real estate and stocks have been doing. There are also a lot of folks who live on a fixed income who are being hurt badly by the rise in prices. Hopefully this is in part due to shortages and adjustment from the pandemic. However, I think anyone who is not concerned about inflation either has their head in the sand, or is simply to politically biased to admit there may be a problem under Biden's watch because it might help the Rs.

 

[Vic]

Hate to tell you, but there are a lot of people who dont have a lot of "assets" to go up in value like real estate and stocks have been doing. There are also a lot of folks who live on a fixed income who are being hurt badly by the rise in prices. Hopefully this is in part due to shortages and adjustment from the pandemic. However, I think anyone who is not concerned about inflation either has their head in the sand, or is simply to politically biased to admit there may be a problem under Biden's watch because it might help the Rs.

It's not that I'm not concerned about recent inflation, it's that I believe it will be largely temporary. Although some price increases, especially those related to wage increases in the service industry, will be permanent, the rate of inflation is likely subside fairly soon. We've already seen this trend of prices spiking rippling through various commodities markets due to supply shortages, such as lumber, and seen those prices rapidly come back down.
And while I sympathize to folks on fixed incomes, that can be resolved through cost of living adjustments, while the wage increases we're seeing were desperately necessary. Because it cannot be overstated that inflation, regardless of how difficult it can be for some, is infinitely preferable to alternatives such as deflation.

 

[Juiblex]

In 2006 I bought my mother's house. I bought it for 100k. I sold it in 2018 at 195k which was the banks max appraisal value. It was just recently sold again for 275k 3 years later. This is a 70 year old 3 bed 2 bath 1600 square feet that is nothing special. Nobody in that area of the city is going to be able to afford it. It's basically inner city at this point. If people don't think inflation is a problem Id like to know what is... We are in a world of hurt and you just don't know it yet. Now with more stimulus being passed out inflation is likely going to get even worse. I can't imagine what 3 years from now is going to look like.

 

[Fenixgoon]

In 2006 I bought my mother's house. I bought it for 100k. I sold it in 2018 at 195k which was the banks max appraisal value. It was just recently sold again for 275k 3 years later. This is a 70 year old 3 bed 2 bath 1600 square feet that is nothing special. Nobody in that area of the city is going to be able to afford it. It's basically inner city at this point. If people don't think inflation is a problem Id like to know what is... We are in a world of hurt and you just don't know it yet. Now with more stimulus being passed out inflation is likely going to get even worse. I can't imagine what 3 years from now is going to look like.

and what city/state is that house in, exactly?

1st rule of housing - location, location, location. if you're in a high-growth/demand area, of course prices will skyrocket.

a friend of mine was looking at a 1600sq ft house in austin (within the city limits in the brewery district, not downtown)...650k. damn near gave me a heart attack! but austin is one of the fastest growing metros in the country and has been for like a decade now.

 

[MrSquished]

In 2006 I bought my mother's house. I bought it for 100k. I sold it in 2018 at 195k which was the banks max appraisal value. It was just recently sold again for 275k 3 years later. This is a 70 year old 3 bed 2 bath 1600 square feet that is nothing special. Nobody in that area of the city is going to be able to afford it. It's basically inner city at this point. If people don't think inflation is a problem Id like to know what is... We are in a world of hurt and you just don't know it yet. Now with more stimulus being passed out inflation is likely going to get even worse. I can't imagine what 3 years from now is going to look like.

You think the recent real estate boom for homes is in any way related to stimulus? Did you hear about this thing called Covid?

Also, NIMBY'ism for building new housing in desirable areas has been around for decades.

 

[Jhhnn]

In 2006 I bought my mother's house. I bought it for 100k. I sold it in 2018 at 195k which was the banks max appraisal value. It was just recently sold again for 275k 3 years later. This is a 70 year old 3 bed 2 bath 1600 square feet that is nothing special. Nobody in that area of the city is going to be able to afford it. It's basically inner city at this point. If people don't think inflation is a problem Id like to know what is... We are in a world of hurt and you just don't know it yet. Now with more stimulus being passed out inflation is likely going to get even worse. I can't imagine what 3 years from now is going to look like.

I hope you're not trying to pin any of this on the current admin. What did you think would happen when you put a real estate huckster/developer in charge of policy, anyway?

 

[Vic]

In 2006 I bought my mother's house. I bought it for 100k. I sold it in 2018 at 195k which was the banks max appraisal value. It was just recently sold again for 275k 3 years later. This is a 70 year old 3 bed 2 bath 1600 square feet that is nothing special. Nobody in that area of the city is going to be able to afford it. It's basically inner city at this point. If people don't think inflation is a problem Id like to know what is... We are in a world of hurt and you just don't know it yet. Now with more stimulus being passed out inflation is likely going to get even worse. I can't imagine what 3 years from now is going to look like.

If nobody in that area could have afforded it at that price, then it would not have sold at that price. While you're complaining about what was about a 75% ROI over 12 years because you could done even better by waiting 3 more years.
Anyway... you better buckle up, buttercup, cause the economic boom is already well underway, and that inner city neighborhood is gonna gentrify in the next 3 years.
The fact that want us to believe that's somewhat a bad thing is just incomprehensible to me. It is, in fact, almost exactly as if you said an economic depression was a good thing.

Edit: BTW, there is no such thing as a "banks max appraisal value." There is simply THE appraised value, which is provided by a 3rd party licensed real estate appraiser, as required by law.

 

[HomerJS]

I hope you're not trying to pin any of this on the current admin. What did you think would happen when you put a real estate huckster/developer in charge of policy, anyway?

Of course he is. He would rather have the solution of the orange menace. 4-6 million dead and 25% unemployment

 

[Lanyap]

That question requires a lengthy back story

12 years ago, I adopted a Persian cat from a relative who was allergic to it. It's not really my kind of cat (I like short haired low maintenance mouse chasing cats), but I figured that I've give it a whirl. I quickly learned that Persian cats are kind of a freak of nature, as they've been bred to have hair so long that they cannot properly groom themselves. If they try, their coat becomes a matted mess and they leave furballs all over the place. Therefore, you either have to brush them twice a week (which my cat hates), or you need to give them a Lion Cut annually. Basically, they shave all of his fur except for his head, feet, and a little ball on his tail. It looks cute, but it really has a useful purpose as well.

He liked the Lion Cut, as he can actually wash himself properly now. I've been doing that annually since I've had him.

Lion Cuts from a good pet groomer aren't cheap. I paid more than $100 for the last one, which (again) was $20 more than it was last year. I think that that price increase has more to do with the increase in the Connecticut minimum wage than anything else.

:thumbs up;
We have a 14yo tabby who bathes/licks herself but we do have to clean up the hair balls from time to time.

 

[Vic]

I hope you're not trying to pin any of this on the current admin. What did you think would happen when you put a real estate huckster/developer in charge of policy, anyway?

What is there to pin? If Trump had won the election, this entire narrative would be about the fabulous wage and asset growth that's underway. The only reason it's about inflation is because liberals are letting the right-wing extremists drive the narrative, as usual.

 

[GodisanAtheist]

As someone who owns a decent number of stocks and has a 401K out there... I greatly appreciate this play by the Biden admin.

Not something that just benefits the Ultra-wealthy, lotta middle class folks have a huge % of their net worth tied up in the market.

 

[NWRMidnight]

You think the recent real estate boom for homes is in any way related to stimulus? Did you hear about this thing called Covid?

Also, NIMBY'ism for building new housing in desirable areas has been around for decades.

The stimulus has zero to do with the real estate boom.

Did the pandemic have an effect on it, yes, but not in the way you think/imply. Because of the pandemic, interest rates are at an all time low, which has caused people to rush and buy a house before they go back up.

You also have the influx of remote working due to the pandemic, where a lot of companies found out that they have higher productivity, and boosted moral among workers, so they have decided to continue remote working which also allows them to downsize their office space, saving them money. So now that people are not tied down to a specific location to work as they can work remotely, they are moving to more desirable and cheaper places to live, all while continuing to earn the higher wages for where their job is. Example: a lot of Californians are moving to Washington state and selling their house for twice or three times what the same house costs in Washington. This allows them to outbid well above market value on Washington, which causes prices to rise. It also is causing a housing shortage, which causes all housing to go up, including rent. These same Californians are still earning their CA salaries working remotely. Some have bought more than one piece of real estate and are renting out the others at a substantially higher costs than what is normal or substainable for this area.

 

[sportage]

Every time republicans screw things up it takes a democrat to clean up the mess. We are, Joe Biden is simply going thru the process of cleaning up. And as with addressing any mess, it takes some time. Burning down the house is easy, rebuilding is the challenge. If Trump had handled the pandemic like a true leader and had republicans had not played politics with the pandemic, things would have never deteriorated to the extent it has. But trump was an ignorant ass, and republicans made politics out of masks and vaccinations, and here we are. Here we are with Joe Biden given the task of cleaning up the republicans mess. And what’s worse, as Biden cleans we have republicans still tossing more and more trash into the works. 2022 will be the make or break election, fore-sure.