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Cake day: April 29th, 2025

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  • toastmeister@lemmy.catome_irl@lemmy.worldme_irl
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    1 day ago

    They misattribute monetary policy that bids up home and asset values using cheap debt and facilitates massive bailouts with federal government policy. The CPI doesnt include asset prices so cheap debt can flood into asset prices without slowing down the devaluation of their salary, it also does subjective inflation deductions to goods based on perceived quality changes, and excludes much of the shrinkflation thats happens to goods and service quality.

    Something as basic like getting support for a flight is now talking to a chatbot with perpetually larger than expected call volume, you pay extra for seating, you pay extra for baggage; and your seat is so small now you also may as well be standing. Free range chickens used to just be called chicken, and eggs could be eaten uncooked since they werent swimming in ecoli, but according to the CPI you’re significantly better off now; so the nominal value of a boomers house is now worth significantly more due to all this perceived wealth.













  • Can you explain it to me because I’d love to know more. My base assumption is if the US had a spike in food prices would they not dramatically increase interest rates, until food prices deflated?

    Rising rates would then drop their current asset bubble due to a contraction in money supply. Hence it could be seen not to be as much a tax as it would be a large amount of pain for existing asset holders who hold nominally valued assets, which would mainly be the rich?

    Another assumption I’d make is higher inflation would also lead to a lower unemployment and greater wage pressure, due to the phillips curve?