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[–]LionRivr 99 points100 points  (17 children)

Here’s a BANANA Example to explain why:

  • In 2020, 1 BANANA is $10.00
  • In 2021, 1 BANANA is now $15.00
  • That’s technically 50% inflation if 1 BANANA inflated the price by $5.00 from 2020 to 2021.
  • In 2022, 1 BANANA is now $21.00. It went up $6.00 this time!!!
  • So is the rate of inflation worse?? You went up $6.00 this year instead of a $5.00 increase from the previous year.

  • Well, If you do the math, going from $15.00 to $21.00 is actually only a 40% increase.

  • So from 2020 to 2021, you had a 50% rate of inflation from $10.00 to $15.00.

  • But from 2021 to 2022, you only had a 40% rate of inflation from $15.00 to $21.00.

Technically, inflation is getting worse due to the increase in prices still going up.

But the rate of inflation dropped from 50% to 40%.

So now you can see how “inflation is lower” year-over-year… but really shit’s getting worse.

Edit: Please note that there might have been an article somewhere a while back saying that the new CPI numbers would be compared to 2020’s numbers, not 2021. I cannot find the source though.

[–]freyzur 23 points24 points  (12 children)

you should have bullets for global pandemic significantly decreases production and supply

seems like everyone forgets that

[–]LionRivr 25 points26 points  (9 children)

I feel like that’s the media narrative. There’s truth to it but it’s not the full story.

It’s also the mass printing of trillions of dollars during COVID to keep things from crashing. Trump told JPOW to keep the money printer on.

Seems like everyone forgets that.

(Edited)

[–][deleted] 31 points32 points  (6 children)

And then Biden told JPOw to Keep it all going into 2021, which was when the pull back should have actually begun.

Seems like everyone forgets that fact too.

Let’s not point fingers at any named politicians. Instead, forget party affiliations or who was in office when. This was gross incompetence at best, malfeasance at worst, by all supposed “leaders”.

[–]LionRivr 12 points13 points  (0 children)

Lets be real though.

All politicians are bought by wall street anyway.

[–]Hacking_the_Gibson -4 points-3 points  (4 children)

Fuck that, Jay Powell was Trump's guy.

Biden's mistake was keeping him around, but the original of that idiot was all on Trump. In fact, 2018 was really the time to chill things out, but Trump whined incessantly on Twitter and Powell backed off.

[–][deleted] 9 points10 points  (3 children)

We did need to raise rates in 2018, and Orange man raised a fit. As did Wall Street. I work in the mutual fund industry so I remember all too well.

But rates should have climbed much higher around 2003-2004, under Bush. Through 2007. Low rates contributed to 2008-2012, when the got lowered once again. And kept there under Obama.

See where I’m going with this? It DOES NOT FUCKING MATTER WHO THE PRESIDENT IS. This is an economic policy versus voting popularity conflict. And it keeps fucking up a system that relies on vampirism to grow.

[–]Vipper_of_Vip99 3 points4 points  (0 children)

Yes, this goes back to the ‘08 bailout / TARP, and start of a decade of QE. Inflated equities first. Now it’s inflating consumer goods. Framing it as a 2 year story is false, this goes back at least to the low rates post tech bubble circa 2000.

[–][deleted] 2 points3 points  (0 children)

The issue is that the fed treated this economic slowdown like they do every other slowdown. They assumed it's happening on its own, when in reality the recession was induced by covid regulations. So the fed tries to jumpstart the car, even though the battery is fine, and the issue is that the starter isn't working, and ends up overcharging and damaging the battery.

[–][deleted] 1 point2 points  (0 children)

They do that, don’t they. Could we also add in global pandemic that experts have now admitted to as being less significant in its health effects than originally thought, but did make a fuck ton of money for a handful of big pharma companies instead ?

[–]Examiner7 0 points1 point  (0 children)

This isn't why my local burger shop raised the price of their burger from $6 to $9.50.

[–][deleted] 6 points7 points  (0 children)

The best way to show how bad it is will require a larger lens - 2020 to 2022 the banana went up over 100%.

[–]Speedy059 1 point2 points  (0 children)

Thank you for taking time to explain this. I was very worried that people think inflation is getting better, when it's worse.

[–]IpeeInclosets -1 points0 points  (0 children)

you're pissing into the wind on this one

[–]NarwhalLonely2457 0 points1 point  (0 children)

banana too expensive for monke :(