Why Are Prices Going Up?
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- เผยแพร่เมื่อ 4 ม.ค. 2022
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It's the worst bout of inflation in decades... What's going on? And what can you do about it?
sources:
www.cnbc.com/2021/10/13/price...
www.washingtonpost.com/busine...
www.cnn.com/2021/11/10/perspe...
www.nytimes.com/2021/11/10/bu...
www.nytimes.com/2021/10/29/bu...
www.seattletimes.com/business...
www.latimes.com/world-nation/...
www.statista.com/statistics/2...
time.com/nextadvisor/banking/...
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Another problem we're facing is big corporations taking advantage of the inflation by raising prices not even affected by the supply chain.
"If your wages increased with inflation."
Wow, imagine that happening! That would be great! Can we have that... please?
I haven't finished the video yet, but wouldn't wages going up along with everything else kinda defeat the purpose ?
@@Smaltese93 What exactly do you mean by "everything else"? They don't necessarily address what you're asking in the video. Wages going up doesn't defeat the purpose of inflation though, because it's not a 1:1 ratio. You don't have to increase a wage by $1 for every $1 you raise the price of a good by. This is one of many reasons.
To be clear I mean.
We just raised minimum wage to $15 hr
Rent, food, gas, utilities also increase in price.
The COL increased just as minimum wage did.
So it defeats the point of raising the minimum wage. Especially if you made above $15 but not too much more. Those people really got screwed
@@Smaltese93 You're oversimplifying it, to the point where I believe you're incorrect. The video does too, and I believe the "wage-price conundrum" they describe is also not a real issue. They also say that that issue is definitely not occurring right now, regardless.
"The COL increased just as minimum wage did."
This has honestly never been the case, at least with the USA. An employee provides more than $1 of value per $1 of salary they earn, otherwise none of this whole employee vs employer thing would really work. Therefore, whatever COLA needs to be made shouldn't be bigger than the increased minimum wage, assuming it was raised the proper amount and not too much or too little.
As for the other part of what you said, yes, poorer people always get screwed in a capitalistic society.
6:04 that’s why they gave the wage-price conundrum.
You guys missed the point on the fact that wages are not keeping pace with inflation.
Housing is basically at a runaway.
In the 1970s a home was about 2.2x the average salary. It is now 8.9x.
Fuel, healthcare, and education all ran away also. Businesses ironically are reporting record profits this past 2021 while they were supposed to be having "labor shortages"
Various reasons for 2021.
To put it bluntly.
1) most significant factor is governments printing massive amounts of artificial demand and killing off supply through shutdown of economy
2) big businesses let go of many workers, an opportunity to fire their least unproductive people
3) workers that worked throughout the 'rona were most likely more productive and driven, they took on the laid off people's work
I have seen this play out anecdotally and speaking with other people. Obviously not the case everywhere but I suspect it's not just me.
Artificially high demand + low supply of goods/services is inflationary.
At my job, many managers were demoted and some office job people were let go/reduced hours to Work From Home/replaced by automated programs.
The workers that stayed took on the extra work.
Add it up altogether and you get record profits.
I hope businesses recognize their profits this year and payout accordingly, especially to their workers that took on the extra work.
That being said I think some businesses know that government is going to stop the gravy train so they don't feel confident in hiring just about any person/raising starting wages.
Take a look at every time the phrase "We're from the government and here to help." When the government started guaranteeing home loans builders and lenders no longer had an incentive to keep costs reasonable so people could afford it. When the government started guaranteeing school loans tuition started to increase rapidly because schools no longer had an incentive to keep costs low. Anything that the government has a guarantee program will always outpace inflation. It's guaranteed so lenders will loan people who shouldn't probably have a loan and builders will inflate costs because those loans will be easily more. Schools will inflate tuition and build name buildings after people just because and spend more on an athletic stadium than ensuring students get a quality education.
@@mrdonetx +1 agreed. Almost everything the government touches eventually turns to 💩.
@@AbrahamsYTC Not to mention that COVID has sped up automation of the workforce
I didn't even notice the moustache! 😂😂😂😂
LMFAO! Me neither!
I definitely noticed….. the porn stache….
Did you notice the ink on his elbo?
@@501mbm talking about the guy from orange is the new black??
You didn't notice because it's NOT THERE
Seeing Philip without his glorious stache is like Oreo without the cream. ITS NOT THE SAMEEEE 😭😭
It better be back on the next video!!
He’s the only one who can rock that stache.
Unpopular opinion: the cookie part of the Oreo is the best part.
I screamed NOOOO and then threw my TV out the window
Lol all I can think is he looks like a teenager now!
Damn the CGI is so realistic, I almost thought for a second that Philip actually cut off his mustache, but there's no way *right?*
Here in Argentina living with 50% anual inflation, is very bad. I lived under very high inflation all mi life, is mentally exhausting, yo can't think very long term, and all yo earn devalues almost the next week. Don't underestimate this.
Thats crazy, where do people invest if they have anything left after their monthly expenses?
@@dennisnoone7427 We buy dollars jajaja, and stuff that doesn't devalues so quickly. Im just saving to eventually get the f.. out of here. But every month we can buy less dollars because the salaries don't adjust ass quickly with so much inflation.
Sorry for the bad English
America is morphing into Venezuela 2.0
@@pabloolivero2783 You Argentinos are the next Venezuela of South America.
We cannot ignore the bigger problem which is the printing of the dollar bill from the federal reserve and how much money we printed during 2020.
They sure did ignore it though. Didn't mention it once... what does that tell you about what they said instead?
Basically they were handed the accepted narrative talking points and rolled with it
lol, its PBS...
heehee money printer go BRRR
@@bumponlog BRRRRRRRRRRRRR!!!
I love how they think we are just more likely to “accept” price hikes in things like food, uh … no I actually just have to eat to stay alive
Right? Businesses couldn't even get away with paying minimum wage if food stamps didn't exist because nobody would be able to feed themselves on these wages
Yeah no theyre right, consumer spending has gone up every single quarter this year.
Prices stay high if traffic dont mind paying the high price. but it gonna get cheaper if u buy the cheaper brand to save anytime.
@@cable30 people need to eat food and literally everything, including the cheapest stuff available, is getting more expensive faster than anyone's wages are increasing.
Agree. The U.S. has to be careful not to let inflation run rampant. Petroleum prices in kazakhstan nearly doubled in a month and to put it lightly their citizens didn’t take to lightly to it. The horrible political environment played a part too but the price increase was the breaking point.
Great, now all we need is wages to rise.....
😂😂😂😂😂😂 good luck hoping that’ll happen
Yep everything went up with like %30, the wage remains the same..
Yeah I don't think we ever need to fear the wage price spiral.
Amen !
@@olandir I would disagree. Maybe not get more money for your current job, but leaving a job for a higher paying job...
Nothing about the historically unprecedented increase in the money supply?
That has no impact, ignore the tiny hat behind the curtain. They don't need your permission to do it, you don't need theirs.
Inflation is always and everywhere a monetary phenomenon - Millions on Friedman
First, the FED changed their definition of M1 which made the change in ‘money supply’ seem much more drastic than realty. Second, ‘money supply’ alone doesn’t necessarily affect prices, money supply + the velocity of money affects prices (in a time when people aren’t spending their money ie pandemic, more cash is needed to keep up the same amount of economic activity).
Money printer goes BRRRRR!
It's been great to see more and more people understanding the concept of #InflationTax the last year and a half.
When the government creates new money out of thin air, the value of the new money comes from taking a little value out of every dollar that existed already.
The federal reserve is STEALING from everyone, especially those who are money savers, or that live on a fixed income.
Inflation is temporary, prices aren’t. That has been said by the fed.
prices don't come down... inflation is a regressive tax that hurts the poor the most.
@@stachowi That's my point. The majority of people, not just here, are pushing that don't worry, inflation is going down. Although that may be true the prices will not be coming down, the fed will not allow it as this will be viewed as deflationary even though it would be the prices would be settling down the properly. They would be pumping stimulus into the economy to prevent the "deflation". Either way, the common person is screwed in this fashion.
@@mro2352 yup, because they know the uneducated won't know why it's happening, those with assets (the rich) will only get richer.
@@mro2352 Low (0-3%) rate of inflation encourages economic growth. Companies grow faster with low interest debt. The wealthy must invest in assets to preserve their wealth or it will be eroded by inflation.
Economic activity stagnates under deflation. Hoarding money becomes the winning strategy. Savers get higher interest rates yes, but borrowers will be driven out of business. Companies cut expenses to preserve cash. The wealthy grow richer as their cash reserves increase in value risk-free! Meanwhile normal people lose work and spend what little cash they have to survive, missing out on value appreciation.
@@stachowi To summarize my long-winded rebuttal: Take a course in economics. Deflation discourages economic activity by rewarding cash hoarding. Inflation encourages growth by rewarding business ventures and investment.
First of all, I did not realized how emotionally attached I was to the mustache until it was gone.
Also, it is very refreshing to hear solid FACTS on why prices went up rather than emotional & politicized claims that presidents are responsible for overpriced chicken. However, I think it’s overly optimistic to think prices will level of to anything resembling what they were before, especially for necessities where demand is not as elastic. Corporations have already seen what we’re willing to spend. They will not give up the increased profit margins. It’s like the airline industry and their 27 different types of fees.
Most awesome thing I read all day Bro!!! both the mustache missing and recognizing neutral and fact based econmic commentray. good times
The video was full of incorrect or misleading info. For example, it said that there are things that the Federal Reserve can do to "fight inflation", without making people understand that the Federal Reserve itself is the cause of inflation. A better word for inflation is dilution. As the Federal Reserve prints more money out of thin air it dilutes the value of the currently existing money. The Fed has been printing money like crazy during covid. Economies that depend on the dollar have seen their prices go up as well because of this.
The Politically Incorrect Guide to Capitalism by Robert Murphy:
"The government is always quick to transfer the blame for inflation onto someone else; unions, greedy businessmen, and Arab oil tycoons are all suitable scapegoats. Yet these groups can at best raise particular prices, not prices in general. If Americans have to spend more on gasoline, that leaves less money to spend on burgers and sneakers. In order to raise prices in general, the government must print more money.
"As Friedman and other economists have documented in countries from Brazil to interwar Germany to Soviet Russia, and from different time periods going back to ancient China, price inflation is always and everywhere a monetary phenomenon."
"Claims that presidents are responsible for overpriced chicken" hahahahaha I laughed so hard at that😆😆😆
Hmm…I don’t know about “solid facts”. More like analysis backed up by data.
#LGB!!!
what about... say... CEOs increasing their wages with inflation ahead of workers? that seems like a pretty big problem.
Corps do alot for their own gain and why some or many hate corps cause of greed anytime.
Classic example Kellogg's
Employees are free to start their own companies, yes?
Why don't they? Possibly because running a company is extremely difficult.
If a job is extremely difficult, it is likely to pay more than a job that doesn't require much skill, intelligence, or risk.
Good cover overall of the issue at hand although I wish you guys would have discussed the differences between monetary inflation and price inflation.
Exactly! They should react to your comment. Good mark!
Bingo!
Agree
This was a horrible "overall" cover of the issue at hand. They never showed any charts of the Federal Reserve's trillions of dollars of money printing. Zero mention of QE/Fed asset purchases that are in the trillions. It's almost like they're hiding it to keep you all as deluded slaves.
^ it is strange to say on the positive and the topic is about an increase in cost during a 2 year pandemic. Very flighty assumption to make.
Because money printer go brrrrr...
Great video but you completely forgot to mention all the money printing since COVID in the US… That isn’t transitory.
Much of that money is actually transitory. The Fed prints money to buy bonds during bad times, and then they sell the bond during good times and takes the money out of circulation.
This channel’s Authors are super liberal apparently but everyone with common sense knows Joe Biden is the #1 cause of the cost of living rising. I hate to say it but some rich investors don’t mind because their asset values will rise. I don’t wanna screw over America tho
@@charlesg7926 Joe Biden is just one person in the enormous machine. On top of that every administration has only made minor tweaks to the formula for as long as I've been alive. It's just their media presentation that the last two presidents mostly differ, which of course, is what the media focuses on and pretends it represents actual policy.
Greed is making prices go up… I’ve lowered the prices at my shop in the past year because I’m not greedy. Business has increased for me since I did that. Those other businesses that are raising prices… just boycott them and they will lower their prices.
Inflation is caused by the massive input of new money, especially from the FED
Lots of good points, but no mention at all how the FED is printing ridiculous amounts of money out of thin air???
the federal reserve is a business like any other. trying to get their piece of the honest tax payer through a government that supports business profit over peoples wellbeing. "too big to fail", subsidies on big commodities like meat.
also, "out of thin air"... you know we run on FIAT right? moneys been printed from thin air since we got off any standard.
This is nothing new. This has been happening since 2008. On top of that the fact that fractional reserve banking continues to exist and inflation wasn't a problem before tells you that just printing money alone, does not affect inflation that much, but is the mixture of multiple factors.
@@Andre-qo5ek the federal reserve is like any other CRONY business, but not like a normal business.
And while the dollar has been fiat since the early 70s, the rate of new currency creation in the last 2 years has accelerated far beyond anything previous to it.
No PBS, the real reason prices are going up is because MONEY PRINTER GO BRRRR
The price increases we're seeing now were baked into the cake years ago, and the ridiculous amount of printing that happened in 2020-2021 hasn't even hit us yet.
Ya, this is some classic texas conservative propaganda
FLOODING the market with **trillions** of new dollars must be addressed in any good video about the current inflation situation.
The federal reserve has created new currency out of thin air, and the value of the new currency comes from stealing a little value from each dollar already in existence. Which hurts the savers, the poor, and those on fixed incomes the most.
I'd highly suggest educating the masses on how the regressive #InflationTax works.
They did a previous video on inflation and failed to give the Federal Reserve credit for inflation by creating massive amounts of new money. It’s almost as if they are intentionally leaving it out…but a youtube channel targeted at young audiences and publicly funded through PBS couldn’t possibly be misleading us on purpose…
Although thinking they accidentally left it out pretty much completely discredits them, so I don’t know which is worse.
This video feels like it was paid for by companies/governments that don't want you asking questions. "Don't ask for higher wages, you'll create an inflation spiral! Don't think about where the money actually comes from, just spend it! Don't ask about if we really really NEED continued increasing growth, not growing is bad!" I feel like the people who wrote this, think we're morons, who will eat up their financial propaganda.
Y’all aren’t even going to mention the main cause, which is that the US govt has printed a significant amount of money during the pandemic? The further we deviate from the gold standard, the higher prices go
I helped solve the problem on my end by leaving one job of 8 years and going to another with a 15 percent pay increase lol.
I was not going to just let prices eat away my salary more and more without exploring my options.
Nice. What state are you in?
@@brooklyn3299 Georgia
RIP Moustache, may the legacy live on in our hearts and memories
Inflation is not "temporary" and considering how the US is printing money and increasing the debt ceiling. We should be worried.
Nah we will bounce back
@@unfairsanic5089 just buy bitcoin and chill.
In a currency reliant on usury, inflation is a feature, not a bug. Let civilization fall and build anew.
“Not temporary” in which way?
Will the prices go back to where they were before, and a +5% will be negated by a future -5%? Not likely.
But will the 5% will go back to the regular 2% once the supply-chain disruptions are over? Yes.
You can check all price increases, and you will find a specific issue causing it, other than “too much money on the market”.
So yes, this is still transitory, but it doesn’t mean that the inflation which has already happened will be reversed. Only further price increases will be stopped. Of course the pandemic needs to stop first…
@@SimGunther glad to hear someone else is talking about usury. people don't always seem to grasp this.
In a related note the "Two Cents" channel will now be called "Three Cents"
Ryan Gosling is incredibly financially literate it’s incredible! Just my two cents
That's like the most propaganda video I've seen in a long time.
This inflation is not "transitory" and people did not magically save thousands to justify price increases (Cares Act btw handed you - if you were lucky - $1400. Now stretch this over the duration of the pandemic and it's barely a weeks groceries).
One thing that would actually help people - and I'm ready to die on this hill:
Demand a livable wage and yearly inflation adjustment for christ sake.
How are you ok with an effective paycut EVERY YEAR?!
One, you're forgetting about unemployment. Often, boosted unemployment paid more than working at McDonald's. I know plenty of people who were able to save money while that was going on
In my country, we're only experiencing inflation of about 2%. But our currency hasn't strengthened against the USD. So basically, I barely feel inflation in my country, but when I go abroad, I would suddenly feel it.
@kiran Indonesia
how often do wage increases match or exceed inflation rates for you?
(i for one have never received a yearly wage increase that even matched inflation rates for the year)
@@Andre-qo5ek My raises have exceeded inflation every year of my adult life. How was your last performance evaluation?
@@penultimateh766
that's great to hear your success.
my performance evaluations are always excellent, bosses are just cheap it seems.
to get "raises" i have always just found jobs that are willing to pay me wages closer to livable.(still not at livable). employers i am considering leaving never counter offer when i bring them my resignation considerations.
this is why i always scoff at quotes from business owners that say "people now-a-days just don't put in the work ethic" ... my experience has always been that business owners don't want to share profits gained from our work.
call them bad apple employers, that they don't represent the whole... but one bad apple can spoil the barrel. cherry picked good examples do not negate the instances of bad actors. unfortunately i do not know what a solution would be besides a philosophical moral and ethical paradigm shift of the business class to respect their employees.
@@Andre-qo5ek I have worked a number of places also, and the increases have held true. Maybe it's something with the type of job you are going for, or your way of asking for a raise.
I'm 17 and got no bills but i still notice inflation when Chipotle prices go up lol
Get a job and buy Crypto
He would be broke now, if he listened to you
We are quick to blame OPEC and Russia for oil production but what about the forced reduction in domestic oil? As soon as the new administration came in, the conditions for oil production in the United States changed a lot and for the worse. This is an artificial barrier that can be lifted at any time but because of political reasons we are suffering.
You forgot that the fed printed 90% of all dollars in circulation in just the last year.
I think the 90% figure is off, but they did kind of miss the point of belt created fiat currencies flooding into the market.
I heard its more like 40% since about April of 2020.
Phil looks 10 years younger without the 'stache, and I don't recognize him anymore
Lol right? He went from dad to hunk in 2 seconds
Mark Roper’s bro
Inflation is like a tax on the poor.
YES! it's actually a tax on everyone, but it's a regressive tax that hurts the poor the most.
#InflationTax
It's disturbing in a video about inflation, you didn't once mention the monetary supply
85% of US population thinks inflation has nothing to do with money printing lol
They are parroting that :))))
I mustache you a question: if my squirreled away mattress money has less buying power, how long will this last and how should I store money?
In a savings account that pays you an interest rate equal or higher than the average annual inflation percentage.
crypto
Invest it in REITs
Index fund. It's a no-brainer
Regardless of pandemic or not, inflation will always eat at the value of the dollar due to an ever growing economy. Best bets to prevent losing value would be to invest it in a safe investments with higher rates than inflation like index funds, stable stocks like apple that outperform the market, or even a bit riskier like cryptos like Bitcoin or ethereum which many use to hedge inflation. Still recommend having a good amount in savings just in case an emergency occurs, cause you’ll never know when you’ll need it!
No mustache makes you look at least 5 years younger, early 30s instead of late 30s. Crazy
Really at least. I would even say like 10 years. 30 vs 40. Really shows what a weird thing a mustache is 😂
3:40 - Question: Is CPI the real number of inflation? 6.8% I understand they continue to change the basket of goods and do not account for all items. For example, steak is replaced by ground beef or some other lesser meat. Yet, homes are not accounted for. I know that I am spending more money on rent, food, gas, and other items. In my personal world, inflation is over 20%.
Simple answer: bad policies
But Muh CEOs and billionaires!
As an entrepreneur and business owner, I would jack up my price for no apparent reason and pretend that it's because of the inflation and the covid. It's common for companies to do this and to only way to stop this is free market itself. If the competition lower prices, the rest will follow. Except the luxury items of course. Like example, iPhone claiming they're solving problems by not shipping the charger with the phone. But it turns out to be worse. And you're still paying the same price.
How ethical of you.
Philip's facial hair is 2022's best investment for sure.
Inflation has been sky high in my country. A sack of flour was 200 bucks now it's closer to 400 and it's still increasing.
I am really hoping you're not referring to a USD when you say "bucks"
@@darkdudironaji No I'm not from the US
@@justahumanwithamask4089 I understood that. But not knowing where you're from, I'm not sure what "bucks" means to you.
Prices are up...coz....Money printer going BrrrrrrrrRrrrrrrr
I’m super disappointed in the lack of mention on the increase of the money supply. This is a huge valuable in the input of inflation. I haven’t had a raise in 8 years. I got kids to feed but you are totally correct that my money is devalued. I started buying bitcoin as I have very little confidence in the us money in the long term
Agreed - this seemed like forced ignorance or intentionally leaving it out to shift conversation away from rampant money supply and government
Would add that unemployment fraud has been insane
They are sponsored by PBS. They aren’t won’t say anything that put the government in a bad light whatsoever.
I'd be curious what field you were in to not get any sort of raise in 8 years. Regardless, you should take the initiate and move to a different company if this is truly the case.
Because these guys support the establishment they will never mention malinvestment of the government
I was watching a program the other day and one of the participants made a very revealing statement. that central banks or rather govts,. want inflation to be high. For many reasons.
the primary being reducing debt or deficit burden. inflate out the "debt". If inflation rises the nominal GDP rises and hence debt to GDP ratio falls and therefore centrals banks can literally inflate themselves out of debt as higher tax collection will automatically reduce deficit.
Secondly rising inflation help central banks justify increasing interest rates which will reduce prices of govt. bonds and hence central banks bond buying program will be even more effective even if tapered down.
Finally the earnings of companies will remain high and thus stock markets will remain somewhat insulated from rising interest rates.
my 2 cents.
#InflationTax is theft!
I like the Austrian definition of inflation which is the correct or the old definition of inflation, a monetary phenomenon caused by government and banks creating more money. Therefore, devaluing the purchasing power of the currency. Kind of sad you guys never mentioned that almost 50% of all US dollars were created in the last 2 years.
If you take 2 seconds to google that statement about 50% of all dollars printed you'll see that it's not totally true.
I like Austrian style vaccine enforcement
"Kind of sad you guys never mentioned that almost 50% of all US dollars were created in the last 2 years." The reason they didn't say it is because it's a lie. The lie is based on the fact that M1 money supply increased by 13Tn in the first half of 2020. Doomsayers and other propagandists claim this was because of money printing, but it wasn't, it's because in March 2020 the Fed started to include money held in savings accounts in M1, instead of just physical cash and money on checking accounts like before. That's why M1 went up by more than 10Tn in one day in March 2020, because they changed definition of M1, not because they literally printed that much. They HAVE printed a lot, but it's in the vicinity of 5-10% compared to 2019, not 100%
Tbh, to anyone with a functioning brain it should be self-evident that the government cannot print more than ten trillion dollars in one day, but I guess some people are just really gullible
@@exantiuse497 who said anything about *printing* money? Who said anything about $10T in one day?
I heard the figure is between 20-40% of the money created by the fed in its 110ish years of existence was in the last 21 months. So while 50% is an exaggeration it's not magnitude of orders off, much like how the dollar has lost magnitudes of order of value since the federal reserve was created.
You might find interviews with Jeff Booth here on TH-cam quite interesting as many of millions, including myself, have.
@@dustinabc People usually refer to the Fed creating money as "printing", even though it isn't physical printing anymore, so that's the term I used. The 10Tn figure referes to the M1 chart a lot of people use to scaremonger when it comes to inflation. In it the chart goes vertical in March 2020, which people claim was due to Fed creating money as part of the Trump administration stimulus effort, but as I said in my previous comment that isn't true
I didn't hear you even mentioning one (the most important) reason could be the FED printing trillions of (free) Dollars, that dilutes its value. Thus, the same ammount of Dollars has less buying power, which equals inflation.
All the reasons you mentioned are not that significant.
Check countries with (long lasting) inflation like Venezuela, Turkey or Argentina and the main reason is lack of monetary policy, that is, printing currency without control.
And since there are quite some extra trillions circullating, the inflation is not over yet, and will still be arround for quite some time.
Suggestion- use the word CREATION not PRINTING, because the newly created currency is just typed into a computer then given to their friends in banks and other similar organizations.
And the value in the newly created currency is STOLEN by devaluing each dollar that already existed.
#InflationTax
Good video, but you didn't talk about the whole picture of inflation. It is true that there is price inflation and that that is caused by a lot of goverment assistance (tax refunds, stimulus and other fiscal policies). All that money that most people got now is chasing fewer goods. So you're right about price inflation.
I'm only a little disappointed that you guys didn't explain why there are fewer goods, and that's because of the production in the US. A lot of the products that people buy are from other countries like China( electronics, clothing, commodities and surprisingly lots of food). So the overall production is very little (also caused by labor shortage). And with rates close to zero you stimulate spending, because people can now loan more money to buy things on top of all the fiscal benefits they already got.
Conclusion, you only told the basics of inflation, but not what's actually happening in practice.
I hope you do your homework better next time and answer my comment.
Keep making videos!
Idk what video you were watching, but that is all touched on in the video. A little harsh too
@@alyssaoneill3070 They didn't say that it's the governments fault and they didn't talk about monetary inflation like printing too much and fucking up the dollar
no video unless ten hours long and OMNISCIENT could cover every cause of inflation...and obviously people just mean "you didnt talk about my pet inflation cause i blame everything on" lollll
It’s just about supply and demand… of money! Too much money in the marketing and not too much products to buy. This is inflation. The prices getting higher are just a consequence.
#InflationTax
I think you miss represented the impact monetary and fiscal policy play into this boom of inflation. M1 and M2 are through the roof.
Right
I am very thankful for 2 cents! Some more videos I'd like to see are ones about how to cope with high university costs, book costs, housing, healthcare, and car costs. I know you've already made videos on these, but making a few more videos about each topic could be a good idea. I'm transferring to university from a community college next week. At my community college, I saved money on books through buying through a Facebook group, renting free books from a club I was in, emailing the professors before the semester started asking if I could buy an older version, and then buying the older or newer version if they were cheaper through the Facebook group or Amazon. I've also recently found 2 different websites that has free eBook versions of some of the expensive textbooks,
Other good video ideas could be complex investing terms explained simply, cryptocurrency videos, traveling videos, and career videos.
Legal in what sense? I doubt they’d do a legal video if it resembles anything close to or can ever be misinterpreted as legal advice.
@@anascoinquest1121 business & startup videos . Yeah, that wasn't a great suggestion. But i was also rlly tired lmao 🤣
Nothing funded by PBS will set you up for financial success. If you’re transferring to a cheaper community college and finding ways to make college cheaper (ie used books) you’re off to a good start! Look for scholarships and jobs that pay tuition (like Amazon, Starbucks and McDonald’s) and follow personal financial gurus like dave Ramsey.
The costs are high because JOE BIDEN is printing tons of money. When money is printed it reduces the value of the dollar… which naturally causes prices to rise. BIDEN is the problem, and I’m tired of pretending he’s not
Relying on Russia and opec for oil is not a great alternative. Seems like a help Biden vid
The look he always gives when he thinks she made a very good and valid point :D
I have always liked you guys because of your anti fear mongering approach. I have a concern with this video though. While you guys try and rationalize businesses raising prices to make up for lost business, you almost entirely ignore the real problem. Money creation by the Fed is totally responsible for the price increases. You briefly noted that “too much cash is chasing too few goods” but you didn’t spend enough time talking about the cash and focused too much on the too few goods. That’s misleading as the Fed and congress have injected money into the system at an alarming rate. Regardless of the pain we would have felt, if the fed didn’t print the money we wouldn’t be experiencing the inflation. They had to print the money to prevent the economy from disintegration, but those efforts are directly responsible for the inflation. Fed and Congress. Monetary and Fiscal authorities. They control the money and therefore they are solely responsible for the inflation. Period.
Yep. One could understand inflation better by watching a #TuttleTwins cartoon on the subject than this video.
The idea that people asking for higher wages is hiking prices feels like BS to me when we know the rich are getting richer, aka, if they are still raking in profit, they could afford to pay higher wages without subsequently jacking up prices so high. They have been underpaying for over 10 years and it’s definitely not the fault of workers wanting a living wage.
Businesses main and only goal is to make money. If they increase how much they give to the workers, they raise prices to make up for it. If workers want higher wages they should get more educated, shop around to different employers, and become more effective workers. Demanding that companies should pay people more than they have to because they can afford to is like demanding that Americans pay more for items because they can afford to.
Walmart's profit margins are incredibly low. If they were to raise wages without hiking prices, they would go bankrupt super quickly.
@@nadie8093 I suppose it depends on the industry. I can understand that some places would have to raise prices to keep up, but other places are just pocketing the extra.
Greed is destroying America
"so, what's going on here? The short answer; Covid."
lol. Right. Money printer go brrr
Fun Fact: the Spanish Flu wasn’t Spanish. It was American. As a neutral country, Spain was just the only country that didn’t keep the disease hush because they’re weren’t putting up a front during WWI.
The thing is... even if things go back to normal in the supply chain, merchants won't lower prices! They'll just pocket the difference!!!
This video should be titled “1/3 the reasons why everything is more expensive”
Let’s just forget about the exponential increase in money printing over the last two years.
#Propaganda
What about the vaccine mandates ? I saw a lot of people quit because of that 🤨
Thank you so much for making this video and explaining the reasons behind the price hikes.
Couldn't be because a runaway Federal Reserve making money printer go brrrr
This was a very compact and efficient video. Kudos and thanks 👍
Cause they get to the point with the animation which is cool.
They missed a major factor though- the creation of trillions of dollars by the gov't and federal reserve.
The new money gets its value by stealing a portion of the money already in existence.
So essentially they took a little value from each dollar you have and gave it to the federal reserve, who then passes that on to banks, and other cronies.
#InflationTax
This is NOT transitory! Look at history. How many times have you seen deflation vs inflation?
Philip looks even more like Ryan Gosling now he sold his tash.
That micky and miney reference is so GOLD 😆😆😆
I'll be getting my annual raise in about a week...very interested to see if it's enough to keep up with inflation. I mean if it's not at least 7%, I'm basically getting a pay cut. We have ramped up hiring so I know we are doing well so there really are no excuses for a low raise.
So inflation is transitory and the Fed SHOULD NOT raise interest rate and keep rate at near zero and continue QE?
Philip without a mustache was a real shock! I didn't realize he had a face behind that thing!
An 8 minute video on rising prices and inflation with precisely zero mentions to the increased money supply (40% of the dollars in existence were printed in the last two years) and its obvious effects on more money chasing fewer goods. I highly doubt this omission was an accidental one.
They are literally funded by the government.
Really like the way you explain these topics in a easy to understand way, with sources, and data. INCREDIBLE content. please keep it up. When you mentioned the wage circle, does that lead to 'hyper-inflation'? What is the difference between regular inflation and hyper-inflation? What are the signs that we're entering hyper-inflation? Thank you!!
You didn't raise the points about how US Fed has already printed about 2.5 more dollars since March 2020, which is the number one cause of inflation!
But not the nearly $4 trillion dollar quantitative easing that was given to Wall Street in 2020?
Even when supply is restored, they won't lower prices
Thank you for making this video! It was very helpful.
A big point they missed that might also be helpful to understand- the gov't and federal reserve created TRILLIONS of new dollars. In some economic circles (Austrian economics) this is the literal definition of inflation- adding new [fiat] currency into the economy.
I wasn't aware of the term #InflationTax until a while ago. But now that i understand it, i see much more clearly how things are being mismanaged.
Can we also not neglect to mention that the supply chains were also affected due to some countries new policies for employment ( No jab, no job.) I'm sure that's also hindering the restart a bit.
I agree! Also the fact that most of these issues around people not working and apply chain issues were caused by government mandates, not by covid.
While all this is really good content making us understand the macro economics, I'd really love u guys to tell us how really to accumulate wealth, where to cut corners, tricks and stuff. This would be really helpful for all of us just entering 20s!
They’ve got lots of great videos on topics like cars, groceries, eating out, housing, etc. I’d start with those if you’re feeling lost.
@@michaellavy3269 I've seen em all but something about making money would be a bit more helpful not Gary vee garage sale shit, something meaningful!
@@deltaecho8968 thank you for calling out Gary Vee .... his content is trash.
-cook at home and DONT eat out
-shop at cheap grocery stores like aldis or lidles etc
-DO NOT buy brand new cars. buy certified pre owned ONLY
-BUILD YOUR CREDIT. get a few credit cards and rack up small amounts on them every month to pay off. one card can be for food, another csn be for fuel for the month for your car etc. credit is king for financing anything. thr lower the interest rate the more you save
-INVEST. do your reserach on investing. this channel has some of the easiest content to follow and learn about it. check it out.
alot of this stuff is just commen sense. just live within your means and dont constantly buy shit you dont need. only if you realy can afford it go for it but be cautious
my best advice is to just have been born 30 years earlier
Happy New Year!!! Greetings from CDMX Mexico 🇲🇽
Simple and concise explanation. Thank you.
Isn't that why the stock market is booming, though? Investors are scared that their monies' value will depreciate, and since stocks are the highest risk but highest reward vehicle out there, they are forced to go into stocks (over other assets) in an effort to beat inflation.
its "booming" because the dollar is losing value. it takes more money to buy the same amount of shares. its exactly what is happening with every day products. this is exactly what happened to Germany in the 1920's. thats why gurus like Buffet are claiming the market is overvalued.
@@pespinoza1995 the dollar hasn't really lost value abroad
@@HH-le1vi relative value is still higher. absolute value, what we are dealing with, is dropping. so long as countries still use the dollar as its reserve currency, america will still float. countries that are buying up gold and such are preparing for a possible dump in the dollar
Philip, I like the new look. Considering how much of a return I've been getting from my stocks portfolio, I'm not surprised there is inflation.
Thank you for this valid info. In the meantime I'll wait to see when I can buy an acre or two of kans right here in Trinidad
I'd love to buy that stache on eBay but KFC just charged me $5.50 for French fries
Love that Christmas story reference. 😉
The Gift of the Magi👌
That Futurama reference was 👌
Wait, where?
Where?
@@Basomic 0:20 - 0:38, the scene in Futurama might also be a reference to something else but it's a scene in the Christmas episode
That's not a Futurama reference, that's from The Gift of the Magi a short story by O. Henry
At 5:40...tbh no, just the opposite. I check my IRA balance daily and am highly aware of its rises and falls, but I have no clue how much the daily items I use cost.
Supply decreased but demand didn't. Demand for specific things went down but people kept spending money on other things.
Because they keep printing.
Really excellent video guys. I work at a small business and my wife is a schoolteacher so we have been feeling the crunch of the recent, covid-fueled inflation. I appreciate you guys breaking down exactly what is going on and giving us some hope that things will turn around. Keep it up!
I'd suggest an edit- *government fueled inflation.
Most businesses and industries weren't influenced much by covid directly, but were forced to close by government. So on that end it was largely govt that caused the problem.
And the govt created trillions of dollars out of thin air that basically went directly to the pockets and accounts of the already wealthy. When there is a flood of new fiat currency entering the economy, prices naturally rise, especially in the areas where that new money goes first (banks- for loans, which then most dramatically increases the prices for things people get loans for- like houses).
And that currency creation is 100% the fault of gov't and 0% covid.
Check out interviews with Jeff Booth here on TH-cam. He's got some great insight.
Dustin they won’t understand this. Don’t wast your time. Too much thinking is involved.
This is a horrible video and doesn't contain a single mention of the trillions of dollars of Federal Reserve asset purchases! They've printed trillions of dollars! Please people, learn about how central banks work.
@@dustinabc I can appreciate that line of thinking. It was the government that shut down the economy after all. Therefore it should perhaps be labeled as a “government inflation”. That being said, I don’t believe that the government would have called for a shutdown if covid had never happened. So, I believe that, in a way, the “government inflation” was “covid-fueled”.
So, we’re both right. Perhaps your response was more precise than mine was but that doesn’t make my original statement wrong.
It's uncanny to see Philip without his moustache.
Love it!
Thank you!
Gee... printing 40% of all money into existince in a year won't do it?
The number one cause of inflation is money creation . More dollars chasing the same amount goods and services .
#InflationTax
4:49 I've seen this with air conditioning!!!!
A basic GE window ac used to be $150. It's the most easy brand to find and their prices have gone up to $180.
But something isn't right because inflation should only be $15...
I digged for other companies and they are still selling their 5000 btu air conditioners for $150.
So GE is definitely using what people think to their own advantage- not necessarily what's true.
It's so sad and why education is so important in the US.
The tumbleweeds were a nice touch. Lol.
Great to see you guys back!
I really wish people at the Lower end get the Benefits they Deserve as Citizens of the Country.
The funny thing is those policy makers who say what you're saying here continue to enact policies that hurt the poor the most.
#nonaggressionprinciple
Very true!
Ironically, “helping the poor“ by printing tons of money, is exactly what’s hurting the poor people long-term by raising their cost of living. Poor people don’t have assets, so inflation hurts them the most. Inflation helps the rich, because it raises the value of their real estate!
@@charlesg7926 Printing tonnes of Money is not helping the Poor.
Discounting existing Student Debts, reducing Tax burden on them is actually going to help them.
On the other hand,
TAX THE RICH !
@@ajsuraj how exactly do you discount student debt? The government has a lending agreement with colleges. The govt can’t default on its payment to colleges (for the student loan), because the colleges are owed that money. Therefore the only way to accomplish that is to print a TON of money… which would cause inflation to rise tremendously
Love your channel! Please make a video on major Economic Indicators that would help us understand Economy in general. Thanks for educating us and using simple terms so everyone could benefit. Great job!
They charge what they charge because nobody is going to complain. I go to 3 to 5 different stores for things. I can get eggs and some other stuff for less than other stores at Walmart. I go to Aldi cause their prices are really low. I don't go to the neighborhood Korean store (Baltimore thing) cause its like chopping off your arm. Inflation isn't the problem, greed is. They are charging us more for less. That 50 cent bag of Doritos is a 1/4 of the 25 cent bag I used to get in the 81.
Love your channel guys!