What's REALLY Causing Prices to Rise?

[@AboveTheNoise]

Are you feeling inflation? How is it impacting you these days? Let us know in the comments - and don't forget to subscribe so you get notified when our Part 2 episode on inflation drops on June 29. That one is all about potential solutions...before we slide fully into another recession, y'all!

[@ChristenMestre]

Hi, where can we find part 2?

[@vermiliontyrant6366]

Inflation affected my wife and I in the aspect of housing, we have been saving for a house and we met our goal but we can't afford a house anymore also we had to leave Phoenix and move back home to Yuma and live with family because we can't afford the $400 rent increase that hit our area.

[@AboveTheNoise]

That's rough. How's it going in Yuma with the family?

[@TheDanEdwards]

You're right about inflation in the late 1970's not being "good". Among other things the political fallout had Carter losing to Reagan and that led the US down the path of undoing some of the important safeguards for the most vulnerable. But inflation is a phenomenon that transcends short term politics and that is a reality that is ignored in times of elections.

[@quryshna]

Medication shortages are the scariest. There were more than a few times in the last two years that the pharmacy wasn't sure if they were going to be able to get me the medication I need. It was scary.

[@AboveTheNoise]

That is an important point! And tied to our healthcare system and all the ethical debates we have there about how best to make sure our citizens have equitable access!

[@I.____.....__...__]

- 1:12 Except that's not realistic. If you look at any graphs of cost increases vs income increases over time, the prices of stuff goes up _much_ faster than incomes go up. Honestly, I don't understand how anyone who isn't rich manages to make ends meet at all, let alone having luxuries like eating out, concerts, streaming services, yearly phone upgrades, etc. 🤨 - 1:25 What? _How_ is a little inflation a "sign of a healthy economy"? 🤔 Constant inflation, even a "little" means eventually all prices will be huge numbers and everything will have to be normalized back down to normal amounts so that people aren't making 100-trillion dollars per month and a bread costing 100-billion. - 2:45 People are struggling to pay even the basic bills like rent or food, while at the same time, corporations like Amazon, oil companies, banks, etc. are posting _record profits._ 😠 … 6:38 Exactly. And it's not surprising. When the lockdowns started in 2020 and people couldn't go to work and make money, they were still expected to pay bills somehow. They were expected to take a hit and not make money, but landlords and banks and ISPs and power companies and such still expected to get paid, they demanded to be exempt from the global issue and not take a hit. 😠

[@AboveTheNoise]

Thanks for watching and your thoughtful comments! You're right-- only SOME jobs give cost of living raises-- and they often don't keep up with the rising inflation, which isn't great for workers, am I right? In terms of a little inflation being a sign of a healthy economy-- what economists usually mean by that is that as the economy grows demand for stuff grows and this can push prices a little higher. It can be good for workers because it creates a demand for job and wage increases. This article goes into more detail about it: poole.ncsu.edu/news/2019/06/13/inflation-is-healthy-for-the-economy-but-too-much-can-trigger-a-recession/#:~:text=A%20moderate%20amount%20of%20inflation,and%20businesses%20want%20to%20buy. And to your third point, yeah seems not great to have so many workers struggling while big companies are raking in record profits. You might really like this perspective on inflation: jacobin.com/2021/09/socialist-primer-monetary-policy-inflation-federal-reserve-volcker-shock-class-tim-barker-interview

[@Duraputer]

Great video, I like how you avoid blaming one particular side. One thing to mention is that while the us has been getting better from covid, china has been having a lot more issues with covid, and have had much stricter shut downs than the us ever had. All countries are heavily dependent on goods manufactured in china. Even goods that are made in other counties may still use a lot of parts from china.

[@AboveTheNoise]

Thanks for your comment! You're right! That's a major reason we have huge supply chain bottlenecks.

[@essbee1641]

Rent is up more than 5%, in Florida at least. Tampa Bay is seeing 20-30% increases in the last year.

[@AboveTheNoise]

Woah! That's nuts! Good luck out there.

[@amandatucker1712]

Literally had to switch to fruits and vegetables due to how much meat cost and I don’t trust myself to cook chicken.

[@martin_bolha]

Trust me, this is only good for you in the long run 😀

[@OmarAbdulMalikDHEdMPASPACPAPro]

My kids are attending our local state college (UDC) because I don't want them taking out student loans. They received AA degrees first, from the community college. I graduated from UDC in 94' w/ BS in Biology. Tuition was $430.00 per semester for FULL time!😁 The SAME school is now about $12 K/yr for DC residents. I advised them to stay with me and my wife, instead of moving into over-priced apartments, in the name of "independence". In Islam, we're not supposed to deal with usury (riba), so I have no credit cards and bought old cars from auctions for saved up cash ($3K for each minivan). I wish I knew how to make more 🤑💰 by halal (permissable) means. Thank you for sharing this with us! 👋🏾👨🏾‍⚕️

[@AboveTheNoise]

Thanks for watching and sharing your family's experiences. Sounds like you all are smart and responsible during these unpredictable times. It would be fascinating to learn how different religions/cultures approach investment and debt. Hmmm...future topic?

[@jimlocke9320]

Inflation is the result of governments, in our case, the Federal Reserve, putting too much money in circulation. We had serious inflation in the 1970s. In the 1980s, inflation was brought under control under the Reagan Administration. As noted in the video, inflation has been under control at about 2% for some 40 years and now has gotten out of control. Typically, getting inflation back under control results in an increase in unemployment. We saw that during the Reagan Administration when official unemployment numbers exceeded 10%. Politicians don't like to see high unemployment, so they avoid putting pressure on the Federal Reserve to restrain the money supply. Politicians love to take advantage of the population's general lack of knowledge of economics to put the blame on everyone else but themselves. The "Inflation Reduction Act of 2022" is "inflation reduction " in name only, in my opinion. It does not address the money supply but gives us the idea that they are doing something about inflation. For an excellent explanation of inflation, what it is and what causes it, please read the chapter on inflation in economists Milton and Rose Friedman's book, "Free to Choose". Also, volume 9 of the 1980 "Free to Choose" video series, posted on youtube and elsewhere, addresses inflation.

[@martin_bolha]

I am not feeling inflation so far, although I can't deny it is happening around here (Czech Republic). The more serious issue for me personally is lack of affordable living. Price for square meter goes up by 20% each year so far and currently, half of my salary is going bye bye just to pay the rent (living in a 40m2 studio). The saddest thing? My salary is slightly above average, so I really can't imagine how a single person like me manages with a lower salary. A room in a coliving flat is currently just about 20% cheaper than my rented studio. So, inflation is manageable IMO, you "just" cut down on things you do not really need, such as expensive food deliveries. But the housing crisis is a completely different level because in the end of the day, how much you put into rent determines how much money you have left for other stuff. Of course, put one the other together and we have it made for a really rough year.

[@AboveTheNoise]

Thanks for sharing your experience over there in Czech Republic. Affordable housing is a big deal issue here in the San Francisco Bay Area, too - with or without inflation. But when you add inflation onto the already crazy high cost of rent, things start looking dang near impossible for a lot of folks.

[@GMax17]

Try not to rent, you want to own. If you own it, you can't resell it later at a higher value.

[@GameTesterBootCamp]

I know this isn't the point of the video but... Bro, where are you paying $40 for a dozen donuts?! 😂

[@tblizzi1369]

Thanks for the explanation. Whenever people brought up inflation I wouldn't have anything to say because I didn't understand why it was happening or why it matters.

[@AboveTheNoise]

Glad you learned something! Thanks for watching!

[@vullerseris5372]

It used to be that if something was not worth the money....you just didn't buy it....now we are being forced to buy merchandise that is not even worth the money. Inflation is very hard on the generation of 2022... Yet what i really feel bad about is all of are new kids graduating that have to face this life on there own right now. How do they feel? Have we even interviewed are children to ask them what they think of all this.... Being the new people in this new modern world that have to face the tall high prices on everything now days.... I don't think we are thinking about how hard it is to follow this trail that we adults are leaving behind This is going to be brutal on are next generation. This is no different then watching a bunch of baby sea turtles getting released into the ocean and watching them all get picked off one by one by seagulls and large sea bass fish.

[@specialtwice4975]

Don't worry, coming from a "baby turtle", the ones that do survive will swim away and come back more prepared. Meaning, my gen or after will focus on making the next gen life's better, and so the seagulls don't come back again.

[@monica4729]

Great channel!

[@gigglysamentz2021]

Great video! Thanks for explaining that simply and remind us to check our confirmation bias ;P

[@AboveTheNoise]

Thanks for watching!

[@Haseri8]

I'm hearing that the workers need to seize the means of production

[@cameronnorris2055]

Do you think that the high costs of gas will make the progress of biking transportation and public transportation increase? I've seen a lot more people riding bikes around my city since the price went up.

[@AboveTheNoise]

Good question. Worth looking into - but sounds logical that public transpo prices might go up if cities don't have funds to offset or subsidize instead of passing along to consumers.

[@Ceelvain]

I often heared that a little inflation is good and deflation is really bad. But why is it so? Good and bad are subjective terms.

[@AboveTheNoise]

Great question! Here's a super simplified short answer. Some economists say that a little inflation is good because it signals that the economy is growing-- demand for things is up, which means businesses can hire more people and pay workers more. So that's generally thought of as good outcomes-- good for companies and for workers. Deflation on the other hand signals an economy that is slowing down-- lower prices generally mean people are spending less, so companies slow production which can lead to lay offs and lower wages. So that's generally thought as bad-- bad for companies and bad for workers. These two articles go into more depth: www.investopedia.com/ask/answers/111414/how-can-inflation-be-good-economy.asp#:~:text=While%20high%20inflation%20is%20generally,Consumer%20Price%20Index%20(CPI). and www.investopedia.com/articles/markets/111715/can-deflation-be-good.asp#:~:text=Typically%2C%20deflation%20is%20a%20sign,to%20layoffs%20and%20salary%20reductions.

[@Ceelvain]

@@AboveTheNoise There seem to be a great deal of untold assumptions there. The purchasing behavior of people. That unbounded economic growth is the right goal to pursue. That capitalism (and liberalism) is the right way to go. Even more fundamentally that a form of money is necessary to our society. It's not that I would fight that last one off. ^^ But maybe the others should be put in perspective with the finite amount of resources of our planet and ecology in general.

[@AboveTheNoise]

Ah, yes. Good points. There are certainly alternatives to capitalism and neoliberalism -- could do a whole other video about that!

[@jackbraddell1124]

Corporate greed, monopolies being allowed by politicians in exchange for donations.

[@susanroche597]

Unless we make own stuff and not have to depend upon others counties. Just curious what if we don’t need to depend on companies.

[@specialtwice4975]

In my history class this was talked about. So in Canada we have hoodies/sweaters made from foreign countries (China, India, etc). These are usually $60-$70 and sold at old navy, Macy's, Jc penny, etc. Well, we discussed "What if those same sweaters were made in Canada, in a Canadian factory?" $250... That's how much each sweater would cost. Why? Because in first world countries you need to pay $7 or $10 per hour, while in china or India it is around $3 a day. Also, there is upkeep of buildings, managers need decent pay, health insurance for employees, high tech machines, etc, etc. There is a factory code that needs to be kept or the factory will be shut down. So prices would need to be high. Very high.

[@25lighters91]

Was looking forward to this new episode..Miles this episode was great especially during $5 a gal gasoline...I see a skateboard back there...Do you really board ? Btw I also believe many hedge fund and venture capitalist hedging shores on vital futures cause a monopolized effect on the economy, killing the security's against rationing and versatility

[@sarahclaasen4317]

Why is economics so dang complex and complicated? and boring for many? Can't wait for part two!

[@AboveTheNoise]

Thank you! Part 2 will publish on 6/29 - so be sure to subscribe so you get notified! That one will be all about potential solutions to inflation.

[@arthurfilemon6038]

Your channel

[@bananabread1480]

ayo not gonna lie ukrain isn't the couse of high fuel prices yeah maybe for natural gas for our ovens but not our cars

[@skpjoecoursegold366]

part 2......................soon?

[@AboveTheNoise]

June 29--- subscribe and hit that bell notification so you know when it drops!

[@ribbonfly]

I wonder if I will ever own a house in the USA.

[@AboveTheNoise]

It's definitely not the "within reach" dream that the previous generation grew up with anymore.

[@ribbonfly]

@@AboveTheNoise even previous generations are losing their housing

[@AboveTheNoise]

@@ribbonfly Good point. It's not a good situation.

[@moniira]

Everything except salary

[@haileybalmer9722]

My life is relatively recession proof. I shop at a store that mostly sources local goods, I live in a city where I can bike to work fairly comfortably, and I don't buy a lot outside of groceries and things like toilet paper and shampoo. These are luxuries afforded to me by socially liberal policies. I'd be pretty screwed if I had to shop at a regular grocery store, and I had to maintain and fuel a car.

[@MrMalkinPens71]

Inflation is killing the United States 🇺🇸 I have had to cancel vacation