Supply chains, worker wages and the price of energy has been blamed for the current bout of high inflation. But central bankers around the world are starting to clue in to something consumers have been aware of for a while — corporations just aren’t afraid to raise their prices anymore.
It’s crazy how many people refer to this shit as “inflation” I could be wrong (wouldn’t be the first time lol) but I think Inflation generally refers to cost increases due to the economy sucking shit.
This isn’t that.
This is companies and landlords and service providers gouging us everywhere they can because the government is doing nothing to stop it, and the companies are laughing in their piles of money while they watch the average idiot call it “inflation” instead of “corporate greed” or succinctly, “greedflation”.
The complacency of people to just accept this and blame it on normal inflation is bonkers. Companies are reporting record profits - how could that be possible under true inflation‽‽
It’s time to fix our broken fucking tax brackets and start swinging at the money-filled pinatas already!
Governments aren’t doing nothing, they are facilitating it all. Because at the end of the day, corporations own them.
Here’s a fun anecdote. Apple, Warner Bros (HBO), and Google built an enormous new mega office complex in Culver City LA, that combined has like 6,000 employees or something. It’s absolutely massive and has destroyed the infrastructure of that area since basically none of the employees live in the area and they all drive in. It just opened last year.
All three raised the prices for their streaming services this year. But yeah, I’m sure it’s just inflation.
The TL;DR historically is that rises in wages led to more spending which increased demand and caused inflation. That’s an incredible oversimplification obviously, but that’s the meat and potatoes of it. People have more money to spend, companies can charge more, your individual dollars become worth less and less over time.
Nowadays with wages stagnating (even reducing in some situations) and immigration being so prevelant we have a situation of more people having less to spend but overall more money being injected into the economy having a similar inflationary impact.
Don’t misread what I wrote and think I am blaming immigration for the current situation, it is entirely the regulatory bodies who dropped the ball by encouraging immigration with no proper economic plan to handle the consequences.
Which is why raising interest rates is not going to fix things. People don’t have a surplus of wealth so disincentivizing borrowing/spending isn’t going to work.