Economists Are Roasting Biden’s ‘Incoherent’ Inflation Tweet—and for Good Reason
“I’m guessing the economists weren’t consulted on this one,” one University of Maryland economist responded.
This mirrors almost exactly something Trudeau said a while back. The only difference is that he was targeting grocery stores instead of corporations in general. It is getting to the point that it is hard NOT to believe this is part of some sinister conspiracy. The alternative is a stupidity so great that it is difficult to comprehend...and just as frightening.
Inflation causes prices to rise. Or it is a measure of rising prices depending on your definition I suppose. In any case, lower inflation doesn't mean lower prices. It just means prices are rising at a slower rate than before. The only way you get globally lower prices is with deflation. For that, you need an economic crisis bigger than what we have all probably seen in our lifetimes. Or perhaps a shift back to the gold standard.
Price gouging is a term normally used to describe what someone is doing when they charge exorbitant prices for necessary items in a disaster area. Like selling bottled water in the aftermath of a hurricane for $10/bottle (nobody ever accuses Disney of price gouging). While the morality and legality of that could be argued, it doesn't apply here. Price gouging can only really occur when you have extreme shortages and/or a monopoly. The inflation we've seen on the other hand, comes largely from the massive increase in the money supply (no matter what measure you use). The damage is done. Lower inflation won't fix things, it just makes them get worse slower. If you have 2% inflation, go to 20% inflation, then back to 2% inflation, it doesn't erase the damage done by the period of 20% inflation.