How inflation works, info for the naive

@averagejoe1 said
For about 10,000 years, corporations have made money at the expense of their consumers.
Do liberals give headaches to other liberals, or just to us?

Suzianne says that the bill will 'put people to work'. She says the inflation is temporary. Does she know when it reverses course during Biden's administration? Suzianne is a student of the Obama class in Econ 10 ...[text shortened]... "Shovel Ready Jobs..Not"

THAT one gave many of the forgotten middle class a LOT of headaches.

General corporation laws didn't exist in the US until the mid to late 1800s.

@averagejoe1 said
Some will continue to defend joe Biden, as inflation rises, by saying it is no big deal, or whatever, he will be OK, it will not get out of hand, he will fix it, the new $4T will not cause inflation and eat us alive.

You are being fooled, because those big bad corporations are combating Biden by simply employing "Shrink-flation". See Llnk.
It is but another examp ...[text shortened]... .etc......

https://www.cnn.com/2021/07/23/business/shrinkflation-prices-grocery-stores/index.html

I’m sorry. But how do you justify the title of your thread with this post?

You have not explained the basic mechanics of inflation to anyone. Naive or not.

Put some bloody effort into it, you lazy sack of 💩.

@averagejoe1 said
Some will continue to defend joe Biden, as inflation rises, by saying it is no big deal, or whatever, he will be OK, it will not get out of hand, he will fix it, the new $4T will not cause inflation and eat us alive.

You are being fooled, because those big bad corporations are combating Biden by simply employing "Shrink-flation". See Llnk.
It is but another examp ...[text shortened]... .etc......

https://www.cnn.com/2021/07/23/business/shrinkflation-prices-grocery-stores/index.html

OK Joe, since yopu asked for it (concludendly by the title of your thread):

Inflation is the phenomenon, that money loses worth. That is when 1 $ buys 10 objects of a certain kind in year 0 with 2% inflation the very same 1$ bill only buys 9.

Why is that?
* If the amount of money is increasing then of course the worth of a single currency unit is decreasing (provided we have the same amount of wares and customers). So printing money is firing inflation.
* If the amount of wares go down, prices go up, causing inflation. So if the planet is loted more and more, the price of raw material can only increase.

In fact Inflation is seen as a good thing in capitalist society. The reasoning goes thus: If I have 100$ I can either save them for a rainy day or I can spend them. If I expect that prices go up (inflation) I will spend them now, since the relative value of the purchased product will increase. So people are sepnding, creating opportunities for other people to work.

BIG Question: Could we have an economy working in other ways?

Answer: Yes we could.

Caveat: But we won't.

@averagejoe1 said
For about 10,000 years, corporations have made money at the expense of their consumers.

Your knowledge of history is as abysmal as your understanding of economics.

@ponderable said
OK Joe, since yopu asked for it (concludendly by the title of your thread):

Inflation is the phenomenon, that money loses worth. That is when 1 $ buys 10 objects of a certain kind in year 0 with 2% inflation the very same 1$ bill only buys 9.

Why is that?
* If the amount of money is increasing then of course the worth of a single currency unit is decreasing (provi ...[text shortened]... Could we have an economy working in other ways?

Answer: Yes we could.

Caveat: But we won't.

Your last para gives me pause. That, a person considers inflation when managing expenditures. I have to disagree, and you totally leave out investing the $100 so that it will grow. You say ‘save’, for return of nothing.
Secondly, just today Stuart Varney , on FoxBiz channel, highlighted what I write about here....”shrink-flation”: He showed us a candy bar wrapper showing 8 oz of candy. Then he shows same product of today, with 7 oz. He showed paper towel with ‘284 sheets”, then same product of today with 262 sheets. Can you not get my point, the title of my post?
The dollar you mention does NOT go as far as it used to. Pretty simple, and Stuart Varney proves it for you, I don’t have to.
You fellers get so angry. Given the above, I hope you did start investing at some point.

I have no issue with your other comments, but the point of my post was the balancing acts of corporations, it was not about your take on the history of inflation. Mine is shrink-flation.

I find it interesting, but I don’t get angry.