Seems like people are finally catching on to what happens if you let government (the fed) increase money supply like crazy (~230% increase in M1 between April and May 2020)

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Pixel-of-Strife@reddit

I'm not sure who this Adam guy is, but even correctly attributing it to inflation doesn't mean they understand it's cause. The general public thinks inflation just means prices increasing, but don't understand that means the money supply specifically.

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Teatarian@reddit

Democrats and their 90% controlled media have convinced half Americans that prices only go up because of corporate greed. Propaganda is a powerful weapon. Very few people know inflation is based on supply and demand, and devaluing the dollar. They don't understand the Fed raising interest rates causes prices to rise. They don't understand that printing more dollars drives down its value. Economics must not be taught in school anymore.

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Then_Baker_9418@reddit

Considering Trump was the one who quadrupled the money supply in May 2020, I don't think it's the Democrats' as fault or problem

https://www.statista.com/statistics/187719/total-us-money-stock-for-m1-since-1990/#:~:text=The%20sharpest%20increase%20took%20place,to%2016.2%20trillion%20U.S.%20dollars.

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Professional_Golf393@reddit

But democrats told me it was all the greedy corporations fault

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coder7426@reddit

And if you disagree or even suggest that gov enabled price gouging (or triggered price discovery) you'll be down voted into oblivion, in just about any sub.

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Maltoron@reddit

Shit there's still people parroting that the corporations are causing price inflation by "price gouging using a pandemic as an excuse."

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Quibblicous@reddit

Most of them claim it’s greed that causes inflation.

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Plenty-Aerie1114@reddit

It just struck me as a reality that a lot of people really don’t know inflation is related to money supply… I always just assumed people knew that and were okay with it for their own convoluted reasons

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sticktime@reddit

Inflation has become synonymous with cost of living increase. They are not the same and it muddies the issue and causes.

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Bitwise-101@reddit (OP)

The problem isn't companies "price gouging" or being greedy for profits, it's inflation. Enough of this "a little bit of inflation" is good BS.

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GinjaNinja1221@reddit

How is it not being greedy with record breaking profits? Genuinely curious, I'm not trying to be an asshole.

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Maltoron@reddit

Company spends $9000, makes a revenue of $10,000, giving them a profit of $1000.

100% inflation occurs, company spends $18,000, makes a revenue of $20,000, giving them a profit of $2000, but now everything costs 2x. Profits are through the roof!

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dassix1@reddit

Any company that grows will typically have record breaking profits EVERY SINGLE YEAR. If a company makes the same profit every year, with inflation - they are actually not growing.

This point seems to be brought up only when its convenient

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RireBaton@reddit

They don't even have to "grow" in terms of actual business being done.

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RireBaton@reddit

If you make twice as much profit, but this year than last, but the money is worth half as much, it may be record-breaking just in terms of dollar units, but you aren't in any better position than before when it comes to actual value. That's what inflation is, the value of the money going down. If you adjust previous profits into 2024 dollars, you'll probably find things aren't as profitable as you think.

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sayitaintpete@reddit

Are we expected to believe that corporations only became greedy in the last couple of years? Even a tiny bit of thought exposes the lie

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natermer@reddit

When shitty things happen in the economy it doesn't equally impact everybody. Some businesses can actually thrive and get more profits.

This happened even in the Great Depression were certain retail sectors of the economy saw continuous growth.

But there is a overall net loss.

The "record breaking profits" is just propaganda created to deflect from the actual cause of inflation. They are lying to you through misdirection and cherry picking numbers.

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Bitwise-101@reddit (OP)

Record nominal profits don't always mean record real profits when adjusted for inflation. E.g. 2022 inflation: 8.3%, 2022 Walmart Earnings increase: 2.2%. Also remember you typically get exposure to companies that are having record breaking profits (nvidia, s and p 500 stocks), so you can't really say that this is the case for the whole market. Either way, even if it is corporate greed (which isn't necessarily a bad thing, corporate greed gives us innovation, entrepreneurship and the desire for money which leads to greater efficiency and what the market wants being produced) if companies raise prices too much market competition comes in and punishes the companies.

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GinjaNinja1221@reddit

I feel like this works in a real capitalistic society. I don't think what we have today is real capitalism. If a small company comes along and starts innovating. For generalization sake, they make a product that's better quality and maybe cheaper to make. The big corps buy them out don't they? That's why you have brands like Nestle and Kellogg's that own many, many brands under different names, but they are all the same company.

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Bitwise-101@reddit (OP)

There's nothing wrong with these companies buying out smaller ones, if the owners see that the profit they can earn from gaining market share by providing better quality and price is less than what they are offered then they would obviously agree. If companies just give crap quality with high prices they can't afford to be buying out the huge quantity of companies that will try come in to fill that gap thats being created (the market inefficiency), and if their mistakes are large enough business owners think they can benefit more from taking market share from them they can just decline their offers. The bottom line is, 99% of the time the market untouched can regulate on it's own, typically the issue is action from the government not from the companies.

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Ed_Radley@reddit

Statistics are easy to manipulate based on the wording. Technically a record breaking profit could have exceeded the previous all time high for the company by $0.01 for the year and it still qualifies as a new record.

It also grossly misrepresents the situation. Let's take Walmart as an example. Total revenue for 2023 was $611 billion while EBITDA (earnings before interest taxes depreciation and amortization; basically what could be considered profits before the tax code moves it all around) was $31.37 billion. This means for every $1 Walmart was paid, they paid somebody else (employees, manufacturers, distributors, advertisers) $0.95 and kept $0.05 at the end of the year. Over the course of the next year, they will take that $0.05 and pay $0.01 to everyone who owns a share (8 billion shares times $0.84/share over the course of a year based on a dividend yield of 1.19% and a current share market value of $69.68).

People don't take issue with the fact Walmart only keeps $0.01 a year from every dollar they're paid to give to the owners. They take issue with the fact that Sam Walton's family owns 4+billion shares of the company and gets paid $47.6 million just to own it, but if that's wrong, who should get paid for a man's legacy built from all the risks he took paying off in a big way? It's quite honestly one of the biggest providers of value for people in the country trying to live on a tight budget.

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pristine_planet@reddit

We need to stop always making it about politics, it isn’t, democrats print as much money as republicans do, it is an economic issue, a 2+2=4 issue. Let’s start by stating how, regardless of how you vote, they will appoint someone to be the fed director, and that person’s decision will have more control over our lives than any president ever will. So we need to start by dismantling the fed, start by not voting either blue or red, there are more options you know.

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Important-Internal33@reddit

This is also why I can't ever take Republicans seriously as a party. Inflation, out of control spending, unsustainable debt, and they're over here like, "we should ban abortion and overturn gay marriage!" I live in Texas, though, so make of that what you will.

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DonResantis@reddit

Family of 3. My wife and I are teachers and make decent money. Our grocery bill was $1200 last month. We had to cancel eating out, the lawn guy, and any extra fun this month. This is insanw

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satchel0fRicks@reddit

You’re telling me that throughout history, when a country prints endless amounts of money with nothing to back it….the money becomes worthless and inflation goes through the roof?

Damn. Anyway, all this corporate greed is getting out of hand!

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Teatarian@reddit

I don't think they teach anymore about why the Wiemar republic failed.

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Scudbucketmcphucket@reddit

Why don’t the people who have the biggest opportunity to change or affect history not know history? Like the classic example of Hitler’s fatal mistake for invading the Soviet Union in winter the same way Napoleon did. If these politicians and leaders actually knew what mistakes were made they might not lead us down the same path. We are looking a lot like the Weimar Republic, I’m just waiting for the brown shirts.

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Teatarian@reddit

We already have brown shirts, they are the varying democrat activists. It really started with occupy wall street. Their name changes to keep them from looking like terrorists. Remember history has always been written by the victors and the powerful. Look at how FDR is praised for creating the great depression and taking total control of the economy and people. Democrats are doing the exact same thing today. Destroy the economy and become saviors to help you.

I love to use the so-called civil war as an example of how history is altered. It's portrayed as a civil war to free slaves. The CSA was a different country so civil war is the wrong label. It wasn't started to free slaves, it was to force those states back into the US. The war was only made about slavery at mid point to keep the Brits and France from helping the CSA. Here more detail if you like.

Civil War Truths

http://www.teatarian.com/2018/12/civil-war-truths.html

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Scudbucketmcphucket@reddit

Yes I agree with you. The civil war was something I really have an issue with. Lincoln knew he was baiting those men at Fort Sumpter into firing the first shots. I really don’t think it needed to come to all of that. People didn’t need to die. It especially baffles me how states were denied the right of succession. As stated by Gene Kizer in his piece titled The Right of Succession: “It is important to understand that secession was a right implicit with every sovereign body politic and a right expressly and explicitly reserved to the States under the terms of the ratification of the Constitution.”

If you join a club or a gym you aren’t bound to them forever! Why would anyone think that leaving wouldn’t be allowed? Why is it considered different when forming a constitutional republic? The schools want to just say things were only about slavery but the reason the CSA left the Union was far more complex than that. Yes agriculture and slavery were issues that were a factor of why they succeeded but slavery was already starting to decline and would have been on its way out.

Also I don’t understand why so many people believe Lincoln freed the slaves. Him only freeing slaves in the southern states seems like a HUGE slap in the face to abolitionists and northern slaves alike in my opinion. It comes across as being a desperate tactic to create chaos with the hope that it would spark a slave revolt or uprising. It is still going strong all over the world unfortunately so nothing was really ended but that’s a whole different issue.

My last issue with Lincoln is how he discarded Habeas Corpus when Union soldiers occupied Maryland and arrested the politicians in order to prevent succession. I understand they needed to not lose DC but they couldn’t work in the framework of the law? As a president who was also a lawyer no less to think that he didn’t honor and follow the framework of the laws that he was there to uphold doesn’t sit well with me.

Don’t get me wrong I think there are benefits to having a Union. We can be stronger together than apart but that doesn’t mean the Union should gain autonomy over the states or that what is good for one state is just as good for another.

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Teatarian@reddit

It's so good to meet someone else who knows actual history. I could add some small details, but am sure you know them.

Norther states were more industrial so they needed the crops in the south. The south was going to start trading them to Europe and that's why the taxes were put into play, one of the things that started the war.

Here is more history that isn't taught. My school had riots after forced integration. It's taught today it was all about race, but I learned from black school mates they were pissed because they had been forces out of their school and lost all traditions. There were some race fights, but they weren't the main trigger. Until integration was forced, there were only 5 back students who were sent to our school.

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Scudbucketmcphucket@reddit

I agree! I find it sad the way that race and other attributes that make us “different” are now being used to push toward segregation. I think it’s the tactic of the crooks in charge to make us all bicker and fight with each other rather than unite and fight these crooks who try to waste our taxes and fleece us. I hate the fact that people’s differences are pointed out all the time and everything has to check all the boxes. It’s crazy. If we followed the Golden Rule we could fix all of that.

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Teatarian@reddit

It's been a long tradition of totalitarians to divide and conquer. If you say anything against it, they can slap you with the racist bigot label. They do it even when the person speaking is in either group/class.

If interested here is some things I wrote about these things.

Fake Hate Crimes List

http://www.teatarian.com/2019/02/fake-hate-crimes-list.html

Fake Phobias

http://www.teatarian.com/2023/11/fake-phobia.html

Democrat abuse of LGBT

http://www.teatarian.com/2023/10/democrat-abuse-of-lgbt.html

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Scudbucketmcphucket@reddit

Perfect! Thank you I’ll check them out. Yeah it really does baffle me how people can’t see the oxymoronic behavior from a lot of the people who speak out about all the “isms.” Like how come people who are born inter-sexed aren’t livid about how their medical issue has been hijacked by the FOR PROFIT groups that preach all day while pilfering pockets. Just like BLM. They had some very valid points that I was open to hearing but I suspected it was all about money, and lo and behold it was just for a greedy few. When they clashed with Darryl Davis, a black man who single handedly dismantled the KKK in a bunch of states by simply becoming their friends, I knew I wouldn’t agree with them.

To me Darryl Davis is a true hero who has changed lives, minds and hearts by simply demolishing their logic by loving them. Anger leads to more anger. Kindness leads to more kindness. Watch the doc Accidental Kindness. That’s the kind of man we need in the world today.

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Teatarian@reddit

Agree with every word. For years it was Trayvon until the truth trickled out. Then they used Floyd who died from a drug overdose. Sure some police do bad things and should be fire, but most aren't bad. I was arrested several times because of nothing. I found later it was personal. Thankfully I knew the sheriff really well and would immediately release me.

I keep trying to tell people they way to win people is to show them you're just like them in most ways. The Pride events paint all LGBT to be about sex, when it's the opposite. I've know people who hated LGBT, but when they got to really know one they totally changed.

The old KKK did some horrible things. I've gotten to know modern KKK and they're different. They don't want to hurt POC, they just don't want them having advantages. A lot of them would vote democrat if not fore a few issues.

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Scudbucketmcphucket@reddit

It’s just sad that we can’t accept that we don’t agree with everyone about everything. Why does it matter that someone likes this vs. that? It’s so dumb to me. I have friends who literally are 180 degrees from me politically but because we each respect each other’s right to have their opinion we are close. I really think the reason things have blown up and gotten so divisive is all because Hillary wants revenge for losing the election. She missed her chance to have the Clinton Trifecta of Bill, her and Chelsea. Plus they’re so crooked it’s not funny.

It’s sad that people tear each other down instead of build them up. I had posted somewhere else that if people got to know people maybe we wouldn’t kill each other. Someone said “so the Jews should have gotten to be friends with Nazis?!?” I said “no the Nazis should have gotten to know the Jews and maybe it wouldn’t have happened.” I really believe in treating others how I would want to be treated and I don’t hate anyone. I am a lover not a fighter. This election time we should walk up to someone with the opposite sign and say hello and introduce ourselves. Maybe some of these walls will break down again.

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Teatarian@reddit

I've chatted with people all over the world and we have so much in common. If people concentrated more on those we might could get along to compromise on the other.

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Teatarian@reddit

They are? Go look at the election poll numbers and most are voting democrat, and for republican Fed lovers.

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DantesTheKingslayer@reddit

"More than doubled!!!" Sure bud.

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Sea-Deer-5016@reddit

When what was a $100 trip to Walmart becomes a $200 trip, groceries have doubled. Whether it's actually the food or just the misc stuff you buy in addition to the food, something is increasing and making our cost of living cost more.

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DantesTheKingslayer@reddit

Please provide evidence then - that the average grocery bill has more than doubled. You can’t because it hasn’t - you are making up facts based on feelings. Prices have not risen over 100 percent in three years. If you can’t have an honest conversation then kindly fuck off.

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beardedbaby2@reddit

Is this sarcasm? Groceries are through the roof today compared to two and three years ago.

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DantesTheKingslayer@reddit

The idea they have “more than doubled” is hyperbolic and eliminates any sensible conversation. No need to use blatant falsehoods to make a point.

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MonteCristo314@reddit

Emperor Trump made it cool to exaggerate and lie.

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tlonreddit@reddit

Ze Premier Trump.

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drebelx@reddit

Almost literally, no one understands that the Government can dilute the money supply.

That is your base starting point.

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scrawberrymalk@reddit

Where are people living that grocery prices doubled? They've definitely gone up, but nowhere close to doubling.

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RireBaton@reddit

I went to buy some beef at walmart yesterday. Even their cheapest beef was $7.40 or so per pound. That's not quite double but I think I remember getting it for just under $5 a few years ago.

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Asangkt358@reddit

I'm in Chicago and grocery prices have gone up tremendously. Perhaps not exactly double, but damn close.

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MrToyotaMan@reddit

I would say they’ve doubled since 2016 when I started buying groceries with my then girlfriend now wife. We could go to the store and buy off brand stuff and walk paying $100 or less. We also cooked too much for two people to finish and ended up tossing a lot of leftovers. Now to feed us and two small kids (who each eat less than half the portions we usually eat) and it’s almost always touching $300. To get out of that store at less than $270 is a great day. Still buying off brand stuff. Things have nearly doubled and some have more than doubled. We both make way better money now but it’s been hard to keep up with inflation. Big raises/job changes are just a band aid because prices seem to quickly catch up

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Trevelayan@reddit

When you take into account price+portion size+ingredient quality the definitely have.

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Scuirre1@reddit

Some items in my stores have definitely doubled. Canned soup, certain protein bars or vegetables. On-brand stuff.

You can definitely avoid those things by just getting off-brand, like great value milk. That's just what I've seen in stores though.

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Keep--Climbing@reddit

Maybe the kids have hit a growth spurt and eat twice as much as they did a few years ago. That could account for a huge increase as well.

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cobolNoFun@reddit

Nah the Keynes cult won and replaced the definition of inflation with "price increases" it's astonishing really. Now they can steal from poor people through actual inflation and blame "inflation" on those greedy faceless rich people! Like a group of giants convincing the people to tilt at windmills.

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Material-Wind-5595@reddit

Just like they changed vax definitions in websters

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Qman1991@reddit

People were soooo happy to get those $600 covid relief checks tho

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big_blue_earth@reddit

"covid checks" isn't the money supply

The Money Supply is controlled by the FED

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chmendez@reddit

But the money supply in great part went to finance the government via the buying of new treasuries issued, isn't it? Also the government being a net debtor(biggest one) benefits with inflation by owing less (the old debt) in real terms while receiving fresh new money via loans or taxes.

Maybe I am wrong, let me know.

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Material-Wind-5595@reddit

You’re not, checks= more money in circulation=inflation. People overcomplicate it

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theclansman22@reddit

I think the rich appreciated the $900 billion in “loans” (90% were forgiven, no questions asked) too.

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JaspahX@reddit

This was the real problem. Those $600 checks were nothing compared to those loans.

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AirReddit77@reddit

When the CIA does that in war torn regions, they call it "helicopter money". Pacifies the natives like magic. The CIA has been applying the invaluable lessons it learned subverting societies overseas to subverting and plundering the US since 1963. "What's sauce for the goose is sauce for the gander" I guess.

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keru45@reddit

Fucking checks were barely a drop in the bucket compared to all the other money that got thrown around to corporations for free

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Qman1991@reddit

Ya, my favorite meme from the time is j pow furiously working the money printing machine. Still makes me laugh every time I see it

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hblok@reddit

Indeed. And when it was pointed out that this was obviously going to end badly, the retort was The Trolley problem, where you could either save grandma, or this abstract concept "the economy". But it feels very real now, doesn't it.

They all voted for this, though. They wore the masks, they took the jabs, they welcomed the shutdown of the entire world. Anybody who objected were castrated and vilified.

They made their bed, and now they get to lie in it. And I have zero sympathy to give.

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AOA001@reddit

No no no you don’t understand. I was told it was January 6th and Roe vs Wade! /s

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mike94100@reddit

The increase in M1 between April and May 2020 wasn’t from the fed increasing the money supply but due to redefining the M1 to include savings accounts due to their increased liquidity compared to the past. M1 is the most liquid assets, and M2 then M3 include less liquid assets. Granted you can still look at the M2 money supply and see the sharp increase in 2020 as a whole. And that it peaked April 2022, declined some over about a year and has been relatively steady since.

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mike94100@reddit

The increase in M1 between April and May 2020 wasn’t from the fed increasing the money supply but due to redefining the M1 to include savings accounts due to their increased liquidity compared to the past. M1 is the most liquid assets, and M2 then M3 include less liquid assets. Granted you can still look at the M2 money supply and see the sharp increase in 2020 as a whole. And that it peaked April 2022, declined some over about a year and has been relatively steady since.

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RealisticSorbet@reddit

Afuera!

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OneBoxOfKleenexAway@reddit

Cool!