President Biden criticized news coverage of the U.S. economy as he faces growing backlash from voters over his handling of inflation. In brief remarks Saturday before boarding the presidential heli…
Inflation is back near normal, but prices are not, and wages have not shifted to match those prices (partially due to the government fighting “wage inflation”). People are still worse off than they used to be. I don’t think this is Biden’s fault, but here we are anyway.
Biden has called this out. A lot of companies are still raising prices or aren’t letting prices fall. They’re still saying “oh, this is inflation causing this” while their costs fall and their profits rise.
Biden can’t stop them singlehandedly. (He’s a President, not a Supreme Dictator.) But he can call them out on it and use what powers he has to bear down on them somewhat if they don’t stop.
It might not get all of them to stop (some might risk fines because the profits would be greater), but hopefully it will direct the anger towards the actual culprits - big companies taking advantage of past inflation to raise prices.
People are looking at inflation dropping, thinking that’s an immediate fix. They’re forgetting that inflation is a measure of velocity. The ground that prices gained isn’t being eaten back up unless inflation goes to an effective negative compared to income.
Personal feelings aside, those are the numbers. Empirical evidence that what people think is just plain wrong. Why? I suspect what Biden is saying is true.
Me and everybody I know are doing great. My empirical evidence seems to disagree with yours.
Too bad nothing can be done about that. If only someone, maybe a government agency, could collect all the data and determine how the country is doing as a whole.
Saying “the economy is turning up and things are getting better” when nothing changed is a lot different than saying “its all going to hell” when no one is struggling.
If you dont grok the difference, you were probably not at risk of the economy fucking you over like how people are frustrated about
But things have changed, that’s the point. While individual experiences vary, all the economic data this year has been pretty stellar.
Reducing inflation this fast without tanking the economy, and not just not tanking it, actually having pretty decent economic numbers is a major achievement.
When the Fed stated raising rates to curtail inflation almost everyone thought there was no way to do it without a recession, maybe a major one, and increasing unemployment 2-3X. The “soft landing” seemed like a naive hope. We’re not all the way there yet but it looks like they actually did it. Inflation is almost down to targets and at the same time, unemployment is still low, GDP growth is good, real wage growth beats inflation, etc.
It’s not all blowjobs and caviar for everyone but we were heading for a major disaster and it’s been avoided.
Except food is still extremely expensive, and real peoples dollars arent worth more, or getting paid more. The economic data doesnt seem to take into account things that actually matter to people who dont wear suits and golf.
Everyone has personal experiences which shape their thinking, that doesn’t mean their thinking is correct or even any more true than someone else’s. I can trust that I feel what 2 feet is on a board, but it’s better if I measure it before I cut it.
If I want to measure a board, I don’t consult a magazine*. I use a tape measure.
Similarly, if I want to know how I’m doing financially, I’ll check my bank account balance before the network that continues to employ Jim Cramer.
*even if I were measuring in potrzebie, I would convert from the imperial units already on my tape measure instead of hunting down a copy of MAD Magazine issue 26. I respect Donald Knuth, but there are limits.
Oh wow. That CNBC article is conflating less inflation with deflation. And where they have to provide numbers they don’t tell you how that 1 percent decrease in chicken is after a huge run up. (And every other product in the grocery section there.)
I knew CNBC was an economic gaslighter but this is Fox News level of wordplay to make people think the opposite of what the actual information says. Even to the point of saying less inflation is deflation. Inflation is a measure of velocity. Going slower is not going in reverse.
And the Forbes one is a paywall.
The basic problem here is that while inflation is slowing and wages are rising, inflation being a net negative against wages for a single year isn’t enough. It’s not enough to make up all the ground lost to inflation over the decades, and the run away inflation we experienced recently. As a reminder, this is 2023. The Pandemic effectively ended in 2020. Three years ago. So what was net inflation in 2021 and 2022?
Well gee I actually have those numbers. 3.7 in 2021, and 7 in 2022. That’s net inflation, so inflation against median wage increase. The net inflation this year would need to be -10.7 to wipe out the difference created in those two years. We don’t have full numbers yet but it looks like about 5 percent median wage increase and 3 percent inflation.
So you have -2 net inflation this year. Yay. We’re still down by 8 points. But that’s okay it’s just a particularly big add to the 139 points we’re down since 1974.
Inflation is back near normal, but prices are not, and wages have not shifted to match those prices (partially due to the government fighting “wage inflation”). People are still worse off than they used to be. I don’t think this is Biden’s fault, but here we are anyway.
Biden has called this out. A lot of companies are still raising prices or aren’t letting prices fall. They’re still saying “oh, this is inflation causing this” while their costs fall and their profits rise.
Biden can’t stop them singlehandedly. (He’s a President, not a Supreme Dictator.) But he can call them out on it and use what powers he has to bear down on them somewhat if they don’t stop.
It might not get all of them to stop (some might risk fines because the profits would be greater), but hopefully it will direct the anger towards the actual culprits - big companies taking advantage of past inflation to raise prices.
No but since he couldn’t stop them he decided the working class would pay the price and had the Federal Reserve fuck over the American people.
The Federal Reserve is independent of the President. They technically answer to Congress, but in reality it’s to the big banks.
Powell was reappointed by Biden. Biden is responsible for what Powell does.
People are looking at inflation dropping, thinking that’s an immediate fix. They’re forgetting that inflation is a measure of velocity. The ground that prices gained isn’t being eaten back up unless inflation goes to an effective negative compared to income.
https://www.cnbc.com/2023/12/13/deflation-inflation-november-2023-in-one-chart.html
https://fortune.com/2023/12/12/wage-growth-exceeded-inflation-jec-democrats/
Those articles sure dont reflect the reality of me or anyone I know, by even a smidge
Personal feelings aside, those are the numbers. Empirical evidence that what people think is just plain wrong. Why? I suspect what Biden is saying is true.
Empirical evidence says I still have to skip grocery trips, and cant afford to fix my car.
So… I trust my lived in life over your numbers
Me and everybody I know are doing great. My empirical evidence seems to disagree with yours.
Too bad nothing can be done about that. If only someone, maybe a government agency, could collect all the data and determine how the country is doing as a whole.
Saying “the economy is turning up and things are getting better” when nothing changed is a lot different than saying “its all going to hell” when no one is struggling.
If you dont grok the difference, you were probably not at risk of the economy fucking you over like how people are frustrated about
But things have changed, that’s the point. While individual experiences vary, all the economic data this year has been pretty stellar.
Reducing inflation this fast without tanking the economy, and not just not tanking it, actually having pretty decent economic numbers is a major achievement.
When the Fed stated raising rates to curtail inflation almost everyone thought there was no way to do it without a recession, maybe a major one, and increasing unemployment 2-3X. The “soft landing” seemed like a naive hope. We’re not all the way there yet but it looks like they actually did it. Inflation is almost down to targets and at the same time, unemployment is still low, GDP growth is good, real wage growth beats inflation, etc.
It’s not all blowjobs and caviar for everyone but we were heading for a major disaster and it’s been avoided.
Except food is still extremely expensive, and real peoples dollars arent worth more, or getting paid more. The economic data doesnt seem to take into account things that actually matter to people who dont wear suits and golf.
~Yall this is NOT empirical, but anecdotal~. That said, I wish you prosperity and only happy feelings (:
edit: I am sarcasm blind, apparently
Yeah…we know. It’s pretty clear wildginger was using it sarcastically and I was using the same words as them.
Oh ok sorry! It seemed maybe wildginger needed my pedantry more maybe. (っ_)っ💗
Everyone has personal experiences which shape their thinking, that doesn’t mean their thinking is correct or even any more true than someone else’s. I can trust that I feel what 2 feet is on a board, but it’s better if I measure it before I cut it.
If I want to measure a board, I don’t consult a magazine*. I use a tape measure.
Similarly, if I want to know how I’m doing financially, I’ll check my bank account balance before the network that continues to employ Jim Cramer.
*even if I were measuring in potrzebie, I would convert from the imperial units already on my tape measure instead of hunting down a copy of MAD Magazine issue 26. I respect Donald Knuth, but there are limits.
Oh wow. That CNBC article is conflating less inflation with deflation. And where they have to provide numbers they don’t tell you how that 1 percent decrease in chicken is after a huge run up. (And every other product in the grocery section there.)
I knew CNBC was an economic gaslighter but this is Fox News level of wordplay to make people think the opposite of what the actual information says. Even to the point of saying less inflation is deflation. Inflation is a measure of velocity. Going slower is not going in reverse.
And the Forbes one is a paywall.
The basic problem here is that while inflation is slowing and wages are rising, inflation being a net negative against wages for a single year isn’t enough. It’s not enough to make up all the ground lost to inflation over the decades, and the run away inflation we experienced recently. As a reminder, this is 2023. The Pandemic effectively ended in 2020. Three years ago. So what was net inflation in 2021 and 2022?
Well gee I actually have those numbers. 3.7 in 2021, and 7 in 2022. That’s net inflation, so inflation against median wage increase. The net inflation this year would need to be -10.7 to wipe out the difference created in those two years. We don’t have full numbers yet but it looks like about 5 percent median wage increase and 3 percent inflation.
So you have -2 net inflation this year. Yay. We’re still down by 8 points. But that’s okay it’s just a particularly big add to the 139 points we’re down since 1974.