TheCatt wrote: ↑Wed Jul 12, 2023 1:45 pm
Yes, aside from when they were higher. Or lower. But like 85% of the time (maybe more), yes.
That's interesting. I'm going to dig up what the interest rate was on the first home I bought pre-2008. You've made me curious.
TheCatt wrote: ↑Wed Jul 12, 2023 1:45 pm
OK, I mis-spoke, prices are falling in some areas (used cars/new cars), but prices are going up much more slowly, overall.
Ok fair, and I'm not throwing shade at you or anything. I'm just making the argument that inflation dropping is great, but until it translates to real prices people see on a day to day basis, it means nothing to them.
Follow me on this thought for a moment:
I think one area that is a fair criticism of pricing, and please prove me wrong here (I genuinely hope you do), is that "prices rise because of _______, but once _______ ends they never go back to the same level."
For example: Prices of ProductA went skyrocketing from $1.99 to $3.99 due to Covid shortages. ProductA is produced by a company that is traded on Wall St. Back before Covid, generic and off brand versions of ProductA could be found for the same price or lower, but within $.30. Inflation drove ProductA's price up another $.50, but now inflation is cooling, the shortages are over, and ProductA's price has only dropped back to $3.99. Meanwhile, the generic and off brand versions are equal to or lower, but again, only by $.30.
Corporations are not going to miss a chance to increase profit. They shouldn't!! They were not responsible for Covid, but they sure as hell aren't dropping their prices back to pre-Covid levels. People kept buying it, so the market must be able to handle it, right? Plus, they can't tell Wall St. that while still crazy profitable, their 1st Quarter earnings are down 2% from the year prior because they reduced prices back to pre-Covid levels. The stock would tank, the board would lose personal wealth, and maybe even get ousted.
However, this is happening almost across the board. And importantly, wages are not keeping pace with the increase in the cost of living.
To be fair: Rent did just fall a tiny amount for the first time in 3 years, which I posted here. However, what do you think is more likely to happen: They drop rent back to where it was pre-Covid or they drop it tiny amounts until they're renting again? Point being, where is the wage increase to offset that particular raise in the cost of living? Again, how do we fix this when it has happened across the board?
Maybe you travel in better circles than I do (I live in a factory town, so very likely), but I hear a lot of grumbling about prices and the cost of living. I've also seen an increase in the number of posts I see on FB and Twitter about it too.
I just think this kind of price increase, the price increases "just because" or because of opportunity (Covid) are what are the real issue is with prices in the U.S., not inflation. And this sparks a whole conversation that has to include social media, the fake posts about perfect lives, keeping up with the Joneses, jobs being replaced by automation, jobs being eliminated to improve quarterly numbers, and yada yada yada that I think has created a lot of unhappy people and/or people willing/"needing" to go into great debt to keep up, and I think we're on the precipice of a breaking point of some kind.
However, that's all a much longer conversation and right now I'm dealing with LAPS bullshit. It's making me want to drive to Redmond and start bitch slapping people there.
