You ever own and operate a business?So the answer is "nobody knows". I tried to ask an AI bot and it gave me the runaround.
Why does the cost of living go up?
Because of inflation.
What causes inflation?
Demand-pull inflation occurs when demand outstrips supply, often due to factors like increased money supply, rising wages, or government spending. Cost-push inflation arises when the cost of production (raw materials, labor, etc.) increases, leading to higher prices for consumers.
Why does cost of production increase?
Production costs increase due to a variety of factors including inflation, supply chain disruptions, labor shortages, rising transportation costs, and higher raw material prices. Additionally, increased labor costs, such as those resulting from higher minimum wages, can also contribute to increased production costs
So basically:
Inflation is caused by higher cost of production.
Higher cost of production is caused by inflation.
That may make sense to somebody but to me it's like getting the "Press x" runaround when you try to call a support desk.
I also don't understand why limited availability would make something more expensive. To me that's a psychological thing, perceived value. It's limited, therefore it must be more valuable and people will pay more for it. And PS, you poors can stay away because only the wealthy can have this thing. We charge this much for it because we can.
The economy doesn't really need to be this complicated.
When are groceries supposed to get prohibitively expensive?
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OccamsRazor
Well-Known Member
I believe this is commonly referred to as "Capitalism." I thought that is what was good???
Wickedwrench
Stubborn and opinionated
AI scares the bejeezus out of me. Too many people treat what it says as gospel and would follow it off a cliff if told so.
Thank God it still makes photos of people with five ears and six fingers so I can still spot the phony stuff.
Thank God it still makes photos of people with five ears and six fingers so I can still spot the phony stuff.
Yes, and we don't raise our prices every year.
See, and this is the only thing I use AI for - explaining things in reasonably simple terms so a layman can understand it.
I think that's the best explanation - "Because we can." It becomes a circular firing squad. Companies/etc raise prices to get more money; people demand higher wages to meet the rising cost of living; companies/etc raise prices in response; people demand higher wages in response to that.
Saves the trouble of having to carry one.
That is exactly the scenario of the early 70s oil prices spiked due to the Arab embargo, UAW had COLA's in their contracts cars and trucks had major price increases. Then the Japanese started selling cars and trucks in the US which were cheaper, lasted longer and got better gas mileage forcing the domestic automakers hand. Then recession hit major layoffs everywhere with corporations trying to survive. Then Volker raise the Federal funds rate pretty much higher than they had ever been, another recession in Reagan's 1st years, then inflation was tamed and the US economy took off with Reagan's tax cuts and unemployment took a nosedive. The expansion went thru Reagan's years and Bush's 1st term, recession started Bush was too stupid to acknowledge it and got his ass handed to him in his loss to Clinton.I think that's the best explanation - "Because we can." It becomes a circular firing squad. Companies/etc raise prices to get more money; people demand higher wages to meet the rising cost of living; companies/etc raise prices in response; people demand higher wages in response to that.
I have often though that the Arab oil embargo was one the best things to ever happen to us!
I had a bit of an issue with it. In order to bring down inflation they drove the economy into a depression, this was just as I was graduating which is why I didn't pursue my chemistry degree. All in all things turned out all right, I ended as a technician who's usually in an engineering slot instead.
Funny I don't remember any depression in my lifetime?
it's being reported everywhere, you fawking moron.
LightRoasted
If I may ...
For your consideration ...
Of course people know you idiot!!! JHFC!!!!!! Hello?! Knock Knock Knock. Anybody home?!!! Would someone tell this recalcitrant dumb blond inflation is a monetary phenomenon caused by inserting too much money into an economy where the level of goods and services remain level. Too much money chasing the same amount of goods and services.
Inflation, expansion of the money supply, causes higher prices at all levels. Raw materials and production, at the producer level, is where the first effects are felt, then it moves on to higher prices at the retail level.
Have her ask her AI "what causes monetary inflation". Never mind, here is what AI has to say about it ......
"Monetary inflation, the increase in the general price level of goods and services in an economy, is primarily driven by an increase in the money supply that outpaces the growth of economic output. When there's more money in circulation, the value of each unit of currency decreases, leading to higher prices. This can be caused by various factors, including government spending, fiscal policies like tax cuts, or monetary policies like lowering interest rates."
Of course people know you idiot!!! JHFC!!!!!! Hello?! Knock Knock Knock. Anybody home?!!! Would someone tell this recalcitrant dumb blond inflation is a monetary phenomenon caused by inserting too much money into an economy where the level of goods and services remain level. Too much money chasing the same amount of goods and services.
Inflation, expansion of the money supply, causes higher prices at all levels. Raw materials and production, at the producer level, is where the first effects are felt, then it moves on to higher prices at the retail level.
Have her ask her AI "what causes monetary inflation". Never mind, here is what AI has to say about it ......
"Monetary inflation, the increase in the general price level of goods and services in an economy, is primarily driven by an increase in the money supply that outpaces the growth of economic output. When there's more money in circulation, the value of each unit of currency decreases, leading to higher prices. This can be caused by various factors, including government spending, fiscal policies like tax cuts, or monetary policies like lowering interest rates."
sorry I said depression when I meant recession. In this case I’d say it was the same thing, but terminology being what it is recession is right.
Early 1980s recession - Wikipedia
If only her mother had had an abortion.
Sounds like you felt it more than I did. I didn't have much of a clue what was going on.sorry I said depression when I meant recession. In this case I’d say it was the same thing, but terminology being what it is recession is right.
Early 1980s recession - Wikipedia
en.m.wikipedia.org
She did. STD79 is the afterbirth.
StmarysCity79
Well-Known Member
Walmart, Nations largest retailer announces it wil raise prices due to Trumps Tarriff's.
Walmart, the largest retailer in the nation, has announced it is raising prices because of President Donald Trump’s tariffs.
The retail giant said on Thursday that it may absorb some of the import taxes, but it is still raising prices to offset increased costs resulting from Trump’s ill-advised trade war.
“The tariffs will result in higher prices,” CEO Doug McMillon said bluntly on an earnings call.
“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon said.
The announcement comes days after the Trump administration announced that it would be lowering its tariff rate against China from 145 percent to 30 percent — an improvement no doubt but still a major tax on common consumer goods. China — and, because of retaliatory tariffs, the United States — has been hit the hardest by Trump’s trade war, and the president still has tariffs in place on several other nations, despite pausing the initial far-steeper import taxes he announced in early April. Trump has simultaneously warned that Americans might have to cut back on certain goods as prices rise, while claiming the tariffs will make everyone richer than they could ever imagine.
“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” Walmart Chief Financial Officer John David Rainey told The Wall Street Journal. “It’s a dynamic and fluid environment.”
Walmart is not the only retailer warning that prices may increase despite Trump’s decision to deescalate with China. Effective tariff rates remain a cost burden for companies importing goods, and shipping into the United States has slowed significantly since April. Last month, companies like Black & Decker, Adidas, and Procter & Gamble warned that price hikes were coming. Online retailers like Temu — who ship much of their stock directly from China, slapped buyers with “import charges” on purchases.
www.rollingstone.com
Walmart, the largest retailer in the nation, has announced it is raising prices because of President Donald Trump’s tariffs.
The retail giant said on Thursday that it may absorb some of the import taxes, but it is still raising prices to offset increased costs resulting from Trump’s ill-advised trade war.
“The tariffs will result in higher prices,” CEO Doug McMillon said bluntly on an earnings call.
“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon said.
The announcement comes days after the Trump administration announced that it would be lowering its tariff rate against China from 145 percent to 30 percent — an improvement no doubt but still a major tax on common consumer goods. China — and, because of retaliatory tariffs, the United States — has been hit the hardest by Trump’s trade war, and the president still has tariffs in place on several other nations, despite pausing the initial far-steeper import taxes he announced in early April. Trump has simultaneously warned that Americans might have to cut back on certain goods as prices rise, while claiming the tariffs will make everyone richer than they could ever imagine.
“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” Walmart Chief Financial Officer John David Rainey told The Wall Street Journal. “It’s a dynamic and fluid environment.”
Walmart is not the only retailer warning that prices may increase despite Trump’s decision to deescalate with China. Effective tariff rates remain a cost burden for companies importing goods, and shipping into the United States has slowed significantly since April. Last month, companies like Black & Decker, Adidas, and Procter & Gamble warned that price hikes were coming. Online retailers like Temu — who ship much of their stock directly from China, slapped buyers with “import charges” on purchases.
Walmart Says It's Raising Prices Because of Trump's Tariffs
Walmart announced on Thursday that it is raising prices because of President Donald Trump's tariffs on China and other nations.
www.rollingstone.com
Just another nothing burger!Walmart, Nations largest retailer announces it wil raise prices due to Trumps Tarriff's.
Walmart, the largest retailer in the nation, has announced it is raising prices because of President Donald Trump’s tariffs.
The retail giant said on Thursday that it may absorb some of the import taxes, but it is still raising prices to offset increased costs resulting from Trump’s ill-advised trade war.
“The tariffs will result in higher prices,” CEO Doug McMillon said bluntly on an earnings call.
“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon said.
The announcement comes days after the Trump administration announced that it would be lowering its tariff rate against China from 145 percent to 30 percent — an improvement no doubt but still a major tax on common consumer goods. China — and, because of retaliatory tariffs, the United States — has been hit the hardest by Trump’s trade war, and the president still has tariffs in place on several other nations, despite pausing the initial far-steeper import taxes he announced in early April. Trump has simultaneously warned that Americans might have to cut back on certain goods as prices rise, while claiming the tariffs will make everyone richer than they could ever imagine.
“The magnitude and speed at which these prices are coming to us is somewhat unprecedented in history,” Walmart Chief Financial Officer John David Rainey told The Wall Street Journal. “It’s a dynamic and fluid environment.”
Walmart is not the only retailer warning that prices may increase despite Trump’s decision to deescalate with China. Effective tariff rates remain a cost burden for companies importing goods, and shipping into the United States has slowed significantly since April. Last month, companies like Black & Decker, Adidas, and Procter & Gamble warned that price hikes were coming. Online retailers like Temu — who ship much of their stock directly from China, slapped buyers with “import charges” on purchases.
Walmart Says It's Raising Prices Because of Trump's Tariffs
Walmart announced on Thursday that it is raising prices because of President Donald Trump's tariffs on China and other nations.
StmarysCity79
Well-Known Member
Yeah the largest retailer in the US raising prices because of Trump.
I'm sure all the people who shop there will say what a nothing burger. Who cares?. Let's pay more!
Is that what you said about the price of eggs 6 months ago?
I don't give a crap about eggs or any of the other stupid sh*t you post, what do you care for anyway, Grandma is paying your bills.