Yep, a huge portion of this recent ‘inflation’ is not cost increases or actual inflation… just basically the wealthy class turning the screws on everyone else because they can.
Don’t worry, my Econ 101 class states that surely a competitor will come in and operate at a lower cost to recoup that cost for the customers!
Wait… what do you mean the competitors are all increasing prices by the same amount knowing demand for diapers is inelastic and the Nash equilibrium is for them to all match price increases so that they all make more money together?
Surely a new entrant will help!
Wait… what do you mean nobody will invest in a new competitor because the market is “saturated” and even if they did the big brands would just decrease prices in the areas they operate until they run out of cash and fold?
Surely a regulator will help!
Wait… what do you mean the regulators feel price increases are due to “too much demand”
for products and are turning the screws on consumers?
Continuous use of irony eventually makes the person communicate the idea unironically. Be careful with how often you are spouting this before you start believing it.
“Actual inflation” is just some capitalist a bit further up the supply chain “turning the screws on everyone just because they can”. Inflation is the ultimate proof capitalism is an inherently flawed system.
This is just false. The OP had the correct idea, demand for essential goods is inelastic. This doesn’t go away if you “get rid of capitalism”. All economies have price increases. If you ban them, you just get shortages and things get sold on the black market (as was the case in the Soviet Union).
The real issue is: what is “essential”? The items we think of as essential are mostly conveniences. Disposable diapers are not essential. Washable diapers existed for thousands of years, and they are way better for the environment. Your kids don’t have disposable clothes. You just wash them when they are covered in vomit or feces. So why not diapers?
Maybe we should consider alternatives to “essential” items. Toilet paper is expensive? Get a bidet. Baked goods are expensive? Get some butter and flour. Beer is expensive? Good news: alcohol just appears for free when you give yeast food! Your home repairs are expensive? Literally watch a YouTube video.
It’s easier than ever to do things on your own. Don’t hand out money unless you want to. And realize the choice you are making.
Washable diapers are somewhat different from regular clothes. They need to be natural fibre (cotton or similar) that can handle being washed at high temperatures - because you want to make sure those diapers are properly clean. Natural fibre is expensive - there is a reason why most denim pants on the market are stretch now. Washable diapers also harken back to a time when one parent - usually the mother - was at home all day to look after the household and the kids. Water and electricity were cheap back then - nowadays if you’re running several loads of washing each week just to clean the diapers, you’re quickly transferring that cost.
Your other analogies are similarly flawed. Home repairs are expensive, sure - but watch a Youtube video? Really? For one, some skillsets are not transferrable through a video - these people make it look easy because they know what they’re doing. Then, even if I can comprehend what I’m supposed to do, I still may not have the required tools - and boy some of them can be expensive. Thirdly, certain kinds of work are regulated, at least where I live (plumbing, electrical), so DIYing those can get you into very hot water if something goes wrong. Lastly, if I botch a repair or break something else in the process, I’m left holding the bag. A tradesman has the required insurance - at least where I live - and has to warrant their work.
Are we going to pretend inflation isn’t also being driven by people acting cavalier? Because non essential spending is still way up last time I checked. People don’t seem to be objecting to the prices at all where it counts.
Are we going to pretend inflation isn’t also being driven by people acting cavalier?
Yes, because inflation is not driven by people spending money. Spending money drives the economy. Inflation means the prices of goods and services are going up. That is driven by scarcity of resources, scarcity of goods, workforce shortages, and more often than not, pure greed.
If you’re arguing that prices are going up because businesses think people have too much money to spend, and want a bigger piece of the pie, then you’ve literally restated the original point of this thread.
You think cotton is expensive? And you think electricity and water were cheaper? None of that is true. I actually looked up what a load of laundry costs in terms of energy and water. It’s about a kWh to wash and another to dry. Water is maybe a dollar per wash.
So $1.50 per wash and dry at most for a couple dozen new diapers. And you forget the best part: you never run out! So you save time by not needing to go to the store.
If you think doing your own repairs is impossible to “comprehend”, I don’t know what to tell you. You may currently live in a house built by illiterate people. And I mean that, literally. Most repairs are very approachable with just a screwdriver and a wrench. You probably have the tools already (or $10 to buy them).
I don’t know what you class as ‘repairs’ if you think ‘most’ of them can be done with a screwdriver and a wrench. I do plenty of DIY and repair work on my house, and have invested in a number of tools, some of which would be completely out of range or over the top for an average family. I’ve had to teach myself some plumbing skills to fix drainpipes and other stuff - screwdriver and wrench get you exactly nowhere with that kind of stuff.
Also, I’ve watched more than enough Youtube DIY videos to know that many of them contain incomplete and misleading instructions, and that some of the people who make them are idiots.
Sure in a perfect world we all the time and money to install a bidet, or bake everything you need, or brew beer, most people don’t have the time and or money to experiment with this kind of stuff.
You got solid points about time and money spent, but it’s not all like that and OP has points as well.
A bidet is $20-$30. My Filipina wife asked for one, and rejected the nicer units I wanted to buy. Busted out all the tools, which some may not have, only needed simple pliers to get the old fitting loose. Rest was done by hand in 10-minutes, tested and working.
Now how much you spending on toilet paper again?
I know we can’t all grow our own food, but some things are worth looking into.
Another one; My fridge is failing. Pretty sure it’s a worn fan, but I’m clueless. As OP said, find a YouTube video. Frustrating? Good, you’re learning.
I’ve had my AC fail a few times. It was a $20 capacitor in every case, took 45-minutes to figure out the first time. 10-minute fix now.
How much was hiring a pro to come to your house?
Hell, maybe you even got some tools you didn’t end up needing, but those are yours forever.
Of course I’m not bashing the thought of DIY but, as we have all seen the effect of “handyman specials”. There is good and bad, but sometimes, and for many people they have neither the time or money, that’s all.
Inflation doesn’t come from demand, it comes from someone raising the price of something - a raw material or a finished product. The combined effect of all those pricing hikes is what we call “inflation”, and they are almost always done in the name of increasing profit, not to meet demand (whether elastic or not).
A system that demands infinite growth cannot work in a finite world, that’s the problem at the root of capitalism.
The issue is indeed fucked, but imma NIMBY this one.
Nuclear reactor in my backyard? Go for it, I understand the risks, and lack thereof. Prison? Fine by me.
Homeless people in my hood? Hard no. And anyone says different hasn’t known or been around homeless people. Only time I consistently carry a pistol is downtown. I’d be hard pressed to pull it, but still…
Many, many are blameless. But fuck me. If you can’t figure out a way to get a roof over your head in America, you’re kind of a fuck up. And I know that statement will piss people off, but if pissed off, how many homeless have you personally known? They’re almost all fuck ups, and not the kind you want around your home.
And yes, I’ve been that desperate, that out of options. Spent a night or two in the woods and under a bridge. Jail would be far preferable. And some take that option.
It’s clearly cheaper to just provide housing. But where?! Are we going to build concentration camps in the boondocks? And not my boondocks thank you very much. I approach my camp every weekend with a pistol in hand for two reasons; 2 or 4-legged crazy animals have set up camp and think it’s theirs.
Mental health care? Again, have you ever met or personally known homeless folks? They will NOT willingly go for help. I got stories. We going to force them into hospitals? Hell, if so, let’s just cut to the chase and build concentration camps.
Lotta sick people walking the streets. And I ain’t got answers. And if anyone gives you a simple answer? That person is ignorant at best, or more probably an asshole.
Best I got for Americans? Some sort of universal health care. Devil and details and all, but my ex-wife, while training in the hood for her RN, talked of men throwing themselves in front of cars on freezing nights. Free ride to the ER. Yeah. We’re that fucked up.
I usually try to see both sides of an argument, give 'em a chance.
For example; Supply chains were truly fucked over by COVID. And believe it or not, it’s still an issue in late 2023.
But inflation now is almost entirely corporate greed. They saw what they could get away with and pressed it.
Say you have egg laying chickens. You were selling a dozen for $1, but prices spiked and people were happy to pay $2.
You going to drop your prices out the goodness of your heart? And at the same time, feed prices went up (but came down again). Everything went up! Need to repair the fence? $20 worth of wire is now $40 (but that price came down).
That extra $20 was nothing to me, but I can justify keeping my prices up, or even raising them!
Expand that to megacorp’s kinda thinking. In my simplistic case, you are solely responsible for the morality of your decisions, and it might be a hard decision. You gonna take less money nice guy?
For a monster corporation? Nah, that greed is spread over a thousand actors, all sanely acting in their best interest.
Capitalism is the best economic system we got, but the flaws are clear. We need strong worker unions and strong legislative oversight. And that is clear as well.
Yep, a huge portion of this recent ‘inflation’ is not cost increases or actual inflation… just basically the wealthy class turning the screws on everyone else because they can.
Don’t worry, my Econ 101 class states that surely a competitor will come in and operate at a lower cost to recoup that cost for the customers!
Wait… what do you mean the competitors are all increasing prices by the same amount knowing demand for diapers is inelastic and the Nash equilibrium is for them to all match price increases so that they all make more money together?
Surely a new entrant will help!
Wait… what do you mean nobody will invest in a new competitor because the market is “saturated” and even if they did the big brands would just decrease prices in the areas they operate until they run out of cash and fold?
Surely a regulator will help!
Wait… what do you mean the regulators feel price increases are due to “too much demand” for products and are turning the screws on consumers?
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Gotta say it. This line of humor is a problem.
It keeps people from doing more than “heh heh, yeah this sucks”.
Agreed. It derails the flow of topic away from discussion.
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Totally understand satire.
This is defeatist humor which weakens the stance of the subject.
Removed by mod
Continuous use of irony eventually makes the person communicate the idea unironically. Be careful with how often you are spouting this before you start believing it.
Removed by mod
“Actual inflation” is just some capitalist a bit further up the supply chain “turning the screws on everyone just because they can”. Inflation is the ultimate proof capitalism is an inherently flawed system.
This is just false. The OP had the correct idea, demand for essential goods is inelastic. This doesn’t go away if you “get rid of capitalism”. All economies have price increases. If you ban them, you just get shortages and things get sold on the black market (as was the case in the Soviet Union).
The real issue is: what is “essential”? The items we think of as essential are mostly conveniences. Disposable diapers are not essential. Washable diapers existed for thousands of years, and they are way better for the environment. Your kids don’t have disposable clothes. You just wash them when they are covered in vomit or feces. So why not diapers?
Maybe we should consider alternatives to “essential” items. Toilet paper is expensive? Get a bidet. Baked goods are expensive? Get some butter and flour. Beer is expensive? Good news: alcohol just appears for free when you give yeast food! Your home repairs are expensive? Literally watch a YouTube video.
It’s easier than ever to do things on your own. Don’t hand out money unless you want to. And realize the choice you are making.
Washable diapers are somewhat different from regular clothes. They need to be natural fibre (cotton or similar) that can handle being washed at high temperatures - because you want to make sure those diapers are properly clean. Natural fibre is expensive - there is a reason why most denim pants on the market are stretch now. Washable diapers also harken back to a time when one parent - usually the mother - was at home all day to look after the household and the kids. Water and electricity were cheap back then - nowadays if you’re running several loads of washing each week just to clean the diapers, you’re quickly transferring that cost.
Your other analogies are similarly flawed. Home repairs are expensive, sure - but watch a Youtube video? Really? For one, some skillsets are not transferrable through a video - these people make it look easy because they know what they’re doing. Then, even if I can comprehend what I’m supposed to do, I still may not have the required tools - and boy some of them can be expensive. Thirdly, certain kinds of work are regulated, at least where I live (plumbing, electrical), so DIYing those can get you into very hot water if something goes wrong. Lastly, if I botch a repair or break something else in the process, I’m left holding the bag. A tradesman has the required insurance - at least where I live - and has to warrant their work.
“Just eat less avocado toast.”
Are we going to pretend inflation isn’t also being driven by people acting cavalier? Because non essential spending is still way up last time I checked. People don’t seem to be objecting to the prices at all where it counts.
Yes, because inflation is not driven by people spending money. Spending money drives the economy. Inflation means the prices of goods and services are going up. That is driven by scarcity of resources, scarcity of goods, workforce shortages, and more often than not, pure greed.
If you’re arguing that prices are going up because businesses think people have too much money to spend, and want a bigger piece of the pie, then you’ve literally restated the original point of this thread.
Only scarcity causes prices to go up, and not demand? Ok. Sure. Ha.
I never said ‘only scarcity’, but sure, have your gotcha point.
You think cotton is expensive? And you think electricity and water were cheaper? None of that is true. I actually looked up what a load of laundry costs in terms of energy and water. It’s about a kWh to wash and another to dry. Water is maybe a dollar per wash.
So $1.50 per wash and dry at most for a couple dozen new diapers. And you forget the best part: you never run out! So you save time by not needing to go to the store.
If you think doing your own repairs is impossible to “comprehend”, I don’t know what to tell you. You may currently live in a house built by illiterate people. And I mean that, literally. Most repairs are very approachable with just a screwdriver and a wrench. You probably have the tools already (or $10 to buy them).
I don’t know what you class as ‘repairs’ if you think ‘most’ of them can be done with a screwdriver and a wrench. I do plenty of DIY and repair work on my house, and have invested in a number of tools, some of which would be completely out of range or over the top for an average family. I’ve had to teach myself some plumbing skills to fix drainpipes and other stuff - screwdriver and wrench get you exactly nowhere with that kind of stuff.
Also, I’ve watched more than enough Youtube DIY videos to know that many of them contain incomplete and misleading instructions, and that some of the people who make them are idiots.
Cotton is not expensive. Denim isn’t stretch because of cotton prices. Demon is stretch because stretch denim is super popular.
12 pack of cotton diapers is $22
https://www.walmart.com/ip/100-Cotton-Cloth-Baby-Diapers-12-Pack-Reusable-6-Ply-Absorbency-Diapers-Baby-Unisex-12-x16-White/824179506
People are lazy as fuck. Scrolling and posting like you and me instead of doing basic shit at home.
Sure in a perfect world we all the time and money to install a bidet, or bake everything you need, or brew beer, most people don’t have the time and or money to experiment with this kind of stuff.
You got solid points about time and money spent, but it’s not all like that and OP has points as well.
A bidet is $20-$30. My Filipina wife asked for one, and rejected the nicer units I wanted to buy. Busted out all the tools, which some may not have, only needed simple pliers to get the old fitting loose. Rest was done by hand in 10-minutes, tested and working.
Now how much you spending on toilet paper again?
I know we can’t all grow our own food, but some things are worth looking into.
Another one; My fridge is failing. Pretty sure it’s a worn fan, but I’m clueless. As OP said, find a YouTube video. Frustrating? Good, you’re learning.
I’ve had my AC fail a few times. It was a $20 capacitor in every case, took 45-minutes to figure out the first time. 10-minute fix now.
How much was hiring a pro to come to your house?
Hell, maybe you even got some tools you didn’t end up needing, but those are yours forever.
DIY ain’t cheap. But baby steps are a thing.
Worst case, you fail and learn.
My 76 year old mother, with arthritis and osteoporosis, living on a fixed income, is not fixing her own air conditioner.
Of course I’m not bashing the thought of DIY but, as we have all seen the effect of “handyman specials”. There is good and bad, but sometimes, and for many people they have neither the time or money, that’s all.
Inflation doesn’t come from demand, it comes from someone raising the price of something - a raw material or a finished product. The combined effect of all those pricing hikes is what we call “inflation”, and they are almost always done in the name of increasing profit, not to meet demand (whether elastic or not). A system that demands infinite growth cannot work in a finite world, that’s the problem at the root of capitalism.
Let’s go further. Why bother with gas? You can just get things delivered, or walk to the store
Why bother with medicine? You could just grow herbs that have the same compounds in unmeasured dosage, or you could synthesize them at home
It’s not that I think you’re wrong, I just think this is an impractical way forward. It’s voting with your wallet, and it doesn’t work
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“There still aren’t enough homeless people. We can keep going.”
Removed by mod
The issue is indeed fucked, but imma NIMBY this one.
Nuclear reactor in my backyard? Go for it, I understand the risks, and lack thereof. Prison? Fine by me.
Homeless people in my hood? Hard no. And anyone says different hasn’t known or been around homeless people. Only time I consistently carry a pistol is downtown. I’d be hard pressed to pull it, but still…
Many, many are blameless. But fuck me. If you can’t figure out a way to get a roof over your head in America, you’re kind of a fuck up. And I know that statement will piss people off, but if pissed off, how many homeless have you personally known? They’re almost all fuck ups, and not the kind you want around your home.
And yes, I’ve been that desperate, that out of options. Spent a night or two in the woods and under a bridge. Jail would be far preferable. And some take that option.
It’s clearly cheaper to just provide housing. But where?! Are we going to build concentration camps in the boondocks? And not my boondocks thank you very much. I approach my camp every weekend with a pistol in hand for two reasons; 2 or 4-legged crazy animals have set up camp and think it’s theirs.
Mental health care? Again, have you ever met or personally known homeless folks? They will NOT willingly go for help. I got stories. We going to force them into hospitals? Hell, if so, let’s just cut to the chase and build concentration camps.
Lotta sick people walking the streets. And I ain’t got answers. And if anyone gives you a simple answer? That person is ignorant at best, or more probably an asshole.
Best I got for Americans? Some sort of universal health care. Devil and details and all, but my ex-wife, while training in the hood for her RN, talked of men throwing themselves in front of cars on freezing nights. Free ride to the ER. Yeah. We’re that fucked up.
I usually try to see both sides of an argument, give 'em a chance.
For example; Supply chains were truly fucked over by COVID. And believe it or not, it’s still an issue in late 2023.
But inflation now is almost entirely corporate greed. They saw what they could get away with and pressed it.
Say you have egg laying chickens. You were selling a dozen for $1, but prices spiked and people were happy to pay $2.
You going to drop your prices out the goodness of your heart? And at the same time, feed prices went up (but came down again). Everything went up! Need to repair the fence? $20 worth of wire is now $40 (but that price came down).
That extra $20 was nothing to me, but I can justify keeping my prices up, or even raising them!
Expand that to megacorp’s kinda thinking. In my simplistic case, you are solely responsible for the morality of your decisions, and it might be a hard decision. You gonna take less money nice guy?
For a monster corporation? Nah, that greed is spread over a thousand actors, all sanely acting in their best interest.
Capitalism is the best economic system we got, but the flaws are clear. We need strong worker unions and strong legislative oversight. And that is clear as well.
One problem is that we allowed corporations to go global without a global labor unions and global regulation.
you turn the screws you tear down the bridge, flimsy as it is, it’s business-like