I just stumbled over this clip of Archie Bunker on inflation...

Discussion in 'Economics' started by Overnight, Jul 24, 2022.

  1. Overnight

    Overnight



    Isn't what he says about inflation exactly what the Fed is kinda' doing right now?

    Get the production higher, get less people working, so there is more supply than demand?
     
  2. TheDawn

    TheDawn

    "He didn't lie. He just forgot to tell the truth". :D:D:D:D:D:D

    What he said about how to bring down inflation was spot on though. "You gotta produce more goods...so when there is more goods to buy and less people who can't afford to buy the goods then the price will come down." Too bad the other guy, just like the majority of the people then and now, think that's a dumb idea when that's exactly how inflation is brought down.
     
  3. ElCubano

    ElCubano

    good one.
     
  4. Millionaire

    Millionaire

    Cant you see the contradiction in what you said.
    You would need more people working to get the production higher.
     
  5. VEGASDESERT

    VEGASDESERT

    making conservatives look dumb on tv 45 years ago

    some things never change. :D
     
    Last edited: Jul 25, 2022
  6. 2rosy

    2rosy

    supply/demand dynamics is not the same thing as inflation
     
  7. newwurldmn

    newwurldmn

    supply/demand is precisely inflation.

    3percent doesn’t happen magically. Someone has more money and spends it. The prices go up.

    When the government prints more money, they are giving it to someone who then spends it causing more demand.
     
  8. 2rosy

    2rosy

    so if the money supply was constant could prices change? If so, do you consider that inflation?
     
  9. People use the term "inflation" two different ways. It's either a reference to creating more monetary units or a reference to prices. Prices can go up by creating more monetary units or with less production.

    World production and worker productivity fell during the pandemic. This created higher prices. M2 did turn up sharply but $2.3 trillion is just sitting at the fed. Most of those monetary units that were created have not yet gone into circulation. That money can't contribute to higher prices until it has some velocity and isn't just sitting there.

    It's a mess for sure.
     
    M.W. likes this.
  10. If the money supply stays constant then you can get higher prices by either an increase in the velocity of money or a decrease in production. Google defines inflation as higher prices, so yes, one could call that inflation.
     
    #10     Jul 25, 2022