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re: So did the fed really fix inflation or did the supply chain problem etc just fade out

Posted on 2/5/24 at 9:27 am to
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
52037 posts
Posted on 2/5/24 at 9:27 am to
quote:

You cannot be that stupid to think inflation has gone down. Everything is still very expensive.



Inflation is the rate of price growth. So when they say "inflation has dropped," what they are really saying is "the rate of price increases has dropped" (ie: price is still going up, just not as fast as before).

The media is largely to blame for this as they use "inflation" in a manner which can seem to imply that "inflation" can mean prices decreasing. When prices go through "deflation", that's when they actually go down (and it's usually a sign that the economy is in the shitter as it means supply has built up because fewer consumers have extra money to spend).
This post was edited on 2/5/24 at 9:29 am
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