Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Inflation ending means stable prices. A general reduction in the price level (aka deflation) comes with horrific unemployment for some people and income loss for everyone else. If you think you want that, you don't.


People are complaining prices are too high, not that it's going up too fast.


I'm sure they do but you can't lower the general price level without the economy imploding because everyone's in too much debt. Imagine if you just bought a house and then housing prices halved - your loan balance is now twice the value of your house.

You could just declare all nominal prices 100x lower and make everyone rewrite their loan contracts, it'd make the penny useful again too, but the best approach is to just wait until expectations reset or voters find a new thing to get mad about.

(Prices can go down in some sectors, like food/oil/technology; nobody really has a good explanation for when this is safe and when it isn't.)

Also, in this case the guy who got elected was running on explicitly inflationary policy - low interest rates, tax cuts and tariffs. Though I don't think voters knew that.


Try both.

Towards the end of the Plague Years, when food prices were going up 4%-5% quarter to quarter, people were most definitely complaining that the prices were rising way too fast.

Some of the prices have started to come down a bit in the past few months[ß] but for vast majority of food items, from staples to high-end ingredients, prices remain painfully high.

ß: in the UK, beef and pork are becoming marginally less expensive, possibly thanks to meat producers figuring out that a number of people are willing to try things like venison, spreading the demand across a wider range of products; this year's olive harvest has been so good the prices for olive oil are expected to come down in about another year; and butter has come down (slightly) from its peak.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: