Highway robbery!

[Torvy]

We don't "need" inflation. It is primarily a function of money supply which is usually a government function. Prior to the New Deal, inflationary spikes would be followed by deflation and prices did not really change much in the long term. As the US government grew, inflation became a more constant pressure. Increased government spending puts upward pressure on prices. Part of this comes from the concept where government departments spend 100% of budgeted money (or more, rarely, if ever less). A business will look to reduce costs, especially in tough times. The government approach is that if Congress appropriated an amount of money, it would be inappropriate to spend less. This flies in the face of common sense.

Example: Congress appropriates $30k for a new tractor. Bureaucrat A makes a good deal with a dealer and gets the necessary tractor for $20k. Bureaucrat B has been doing this longer and either doesn't negotiate or just gets another $10k in superfluous upgrades. Bureaucrat A is reassigned to lesser role for failing to spend the appropriated amount. Bureaucrat B is hailed and/or promoted for spending all appropriated money. This system leads to more waste, corruption and contributes to inflation.

In business, you see the same example, but the manager who came in under budget is promoted and the other guy is eventually fired for incompetence.

 

[mred2]

Yes, inflation hurts anyone on a fixed income. But the government comes out ahead. As taxes are based on a percent of your higher income, their debt is worth less. Maybe if we stopped the spending, with inflation, we could someday pay it down.

 

[bigtiller]

In 1970 Henry's Hamburgers would have their hamburgers sale priced at 10 for a dollar. Then McDonalds moved in a block down the street with their 18 cent burgers. And that was the end of Henry's. Now the same burger is $2.50.

 

[ruffdog]

I haven't ate at McD since the 80's.

 

[lman]

I haven't ate at McD since the 80's.

What does that have to do with the price of tea in China?

 

[IrishLoader]

Yesterday I read about the value of used pickups falling in value due to the higher fuel costs. Crazy times, I hope we can survive this.

A little while back I wanted to see just how much my beater was worth, gotta be a model and make thing because I was offered a bunch more clams than I paid for it in '20.

 

[bigtiller]

What does that have to do with the price of tea in China?

Inflation was the topic of discussion.

 

[paulfun9]

I haven't ate at McD since the 80's.

You aren’t missing anything. They didn’t get any better!

 

[Bill Guenthner]

Sept of 2020 I picked up one of the last 14'x6' dual axle landscape trailers in Michigan as the shortage had just begun. $2399! Happened to stop at the farm supply store you all know for a few things. I noticed a fresh shipment of trailers on the lot so I was curious to see what has happened price wise since i bought it. Holy#$^%. My $2399 is now $3699. Time to drag out the welder and hack saw and start building.

Good luck. Lumber, steel, tires, electric wire, and energy are all more expensive that two years ago. I just re-decked my car hauler and spent half the trailer’s original cost just on lumber.

 

[Jstpssng]

You aren’t missing anything. They didn’t get any better!

That’s like what my brother posted on FB years ago. When we were growing up we are a lot of grilled cheese sandwiches made with Velveeta. About 10 years ago he asked “Have they changed the recipe of or was it always this bad?”
No Tom, that stuff was always nasty. We were kids and didn’t know better.

Besides, it tasted good!!