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0 sats \ 5 replies \ @cascdr 30 Jan \ parent \ on: Economist Reveals: "Inflation is Actually Bad!" (Econ Forces, Josh Hendrickson) econ
This is a very weak argument actually. You're effectively saying:
No one sells inflation enough. It frequently leads to cost cutting and lower quality products. It bids up assets. It devalues the working class's wages. It gives employers undue leverage in salary negotiations. It creates an incentive for corporations to put poison in our food to cut cost.
All so that we can checks notes make it easier for banks to make money through loan issuance.
I think you are missing the point. The point isn't that inflation is good. I agree with you on cost cutting (shrinkflation).
If we want to see inflationary forces in a more clear light it might make more sense to compare goods that haven't really changed as much.
And
Butter, ammo, milk, meat, eggs, oil, and gold. Even with those there are efficiencies that are deflationary but the quality change is less drastic.
I'm not arguing for inflation or fiat here. Just that its complex and over-simplification weakens the argument.
To make your point more strong I would say that in many ways houses built in the 50s used higher quality materials than are used today. Cost cutting due to inflation is a factor. But on the another hand houses built today have features people in the 50s could only dream of.
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You:
Cost cutting due to inflation is a factor. But on the another hand houses built today have features people in the 50s could only dream of.
Bureau of Labor and Statistics:
The CPI uses hedonic quality adjustments in item categories that tend to experience a high degree of quality change either due to seasonal changes, as in apparel items, or because of innovative improvements and technological changes, as in consumer appliances and electronics.
It is apt to point out that the hedonic adjustments you call for are already part of inflation data. And it is still abysmal. It is not as nuanced as you think.