The US economy had much worse inflation in the late 1970's--early 80's. In my experience with a big company raises were from 5-7%. Commercial banks paid 5% (fixed by law) interest so people put their cash in money market funds (something new) that paid 8-9%. Mortgages were well over 10% (for a 15-30 year fixed rate) with 1 or 2 % points upfront. Credit cards charged 20%. Today's economy looks pretty good to me.
@@hewitc Young people could afford houses back then, especially with fewer credentials (like no university degree). Now, they can't. Today's economy looks not so good to me. Also, things are supposed to improve. Mortgage rates may have been higher, but home costs were much, much lower. Also, how often did homes have high HOA fees? When we add everything up, the economy looks good to you because you are old and saved money and don't seem to understand the struggles of the younger folks who never got the chances you did. Nobody forced you to get a credit card. If the rate didn't look good, you could just not use one. Housing, on the other hand, is something everyone needs, so when you are priced out of home ownership and have to rent forever, it's a little hard to say that things are good today. And don't even get me started on student loans....
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
I'd like to give significant credit to Melissa Terri Swayne who maintains a strong online presence. You can easily find her through a web search. While there are some other individuals worth considering, it may be more challenging to locate them. In addition, She has provided excellent guidance throughout the year.
Upon conducting an online search of her name, her website promptly came to my attention, sparking my interest. The initial impression is favorable, and I plan to schedule a conversation with her. I'll be sure to keep you informed about how it unfolds. Thank you.
In the long run, nominal wages actually rise with inflation, increasing production costs and thereby reducing aggregate supply.This is how the economy self adjusts.
did you not watch the video? With the exception of COVID-19 2020-2023, wages historically have outpaced inflation. Wages are back to outpacing inflation again in 2024.
"Inflation allows companies to cut wages without cutting wages" isn't necessarily a bad thing. Even in good times, some businesses do poorly because they're badly run, are overinvested in declining markets, or produce things that are losing their appeal to consumers. Inflation allows these companies to reduce the proportion of their income spent on wages while avoiding the morale shock of actually cutting wages. Sometimes this just delays these employers' inevitable collapse, but sometimes it gives them a chance to turn things around.
Yeah, pretty sure. Try working for a company where revenue is not growing, very soon you will find out they will not hire anyone or, even worse, they will layoff people. Furthermore, no increasing revenues also mean no increasing salaries (raises).
What I'm sure of is that when companies make more money, they quickly look at ways of reducing costs to further maximize income. Labor cost gets their attention!
Stability is a result of our economy's struggles with uncertainty, housing issues, foreclosures, global volatility, and the pandemic's consequences. To restore stability and promote growth, all sectors must respond quickly to concerns about growing inflation, slow growth, and trade disruptions.
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
You completely forgot about "parachute" pricing. This is where prices go up, the companies like the additional revenue and purposely slow the decline back to an acceptable amount. 🤬
It's a relative of inflation price-gouging, where companies jack up the prices to increase their profit margin, and then lie to the public and say that they're just "passing on inflationary costs" while simultaneously reporting record profits
Yeah, sticky prices, too. High inflation begets high inflation, unfortunately, and it could be difficult to reduce sticky inflation. Thats why central banks need to act quickly and aggressively to reduce inflation.
@@jennastephens1224well it’s all fractional. As inflation goes up more money exists. For companies to impress shareholders they need to outdo this rate of increase. Or at least increase. If they are increasing more than a 1:1 with inflation which is necessary to be investment grade over time, this must occur. Of course billionaires and ultra millionaires have lots of money in this but tens of trillions of dollars are held by regular people in pensions and retirement accounts. Those accounts rely on the companies to produce record profits nearly every year because they have to improve over time. It’s all cyclical. You can complain about one part of the system but you have to understand how changing it will affect the other parts. Companies do not lower prices because the economy is still inflating meaning more money is entering it. Unless deflation occurs prices will automatically never lower after periods of rise.
Their main concern is profit and if they actually lower prices too slowly then they will lose out on profit. The reason they do this is because inflation periods are uncertain, it's not the fault of the companies but of government and central banks.
Increases in wages and buying power never seems to “trickle down” nearly as fast as increases to prices, which seem to happen as fast as the companies can print the new stickers.
We are getting this concept told for decades now. But does it really make sense? Do you buy a new laundry machine/smartphone/coffee because you fear that it will be more expensive next year? Would you visit restaurants less frequently, when their prices get cheaper, expecting that prices will fall even more next year???
You are not understanding the argument. That is why they have to keep explaining it to you for decades. This Simmons washing machine is $600, in two years it will be $400... correct. But a new washer that is the equivalent of where in the spectrum that Simmons one had been on it's release to the market, that equivalent, it is not $600, it is $650. Not the same exact item at different point in time. The same type of item, a mid-range, gadget w/ the bells and whistles customary to the development of like items.
Of course it doesn't make sense because it's a lie to obfuscate that inflation is good for governments and rich people which is why they create inflation.
Inflation is gradually going to become part of us and due to that fact, any money you keep in cash or a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
@@RonaPatton Rebecca Lynne Buie is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
We're only a handful of years away from having a minimum amount of money that must be in our bank account at all times. Living paycheck to paycheck will be illegal. If the government screens you and your account and it has less than the required amount, the government seizes everything that you do have and places you in prison.
@@RickyIcecubes Being a billionaire doesn't mean you can't invest; in fact, a diversified portfolio is essential. Just look her up on Google to see her impressive track record. She's licensed and has experience working with several billionaires like you.
There ARE no 'profits from inflation', this is a lie, and to be fair, this video parrots this lie to you, which is why you restponded. HOW does printing more pieces of paper create more purchasing power in the real world ? Of course it does not. Companies lay off people because they no longer need workers, full stop. The economy does not 'need' 2 % inflation, the economy needs 2 % (or more) real growth. If real growth in real profits was happening, then more workers would be needed, and since this current 'growth' is just an inflationary lie, of course no new workers are needed, and as customers are squeezed by inflationary theft of their real purchasing power, less employees are needed to earn what little real profits are still out there.
40+ years of consolidation. Where once there were a dozen suppliers now there are two or three. We need more competition in the market to drive down profits.
We need deflation ASAP. 2% inflation never benefited the people. It's always been for the corporations bottom line. Charge more and more. People always paying the price.
@@WhyWorldWet Not productive businesses, those who control the new currency pumped into the system. Why do you think central bankers, bankers and wall street stay on the top? It's not hard when they get the new dollars first. And when they spend tomorrows dollars at today's prices... well, they can consolidate their control on resources despite their mismanagement
That's the idea, when it's predictable, you would be more inclined to skip it. Many regular youtubers do that as well as the opposite of it when they would change into a different set of clothes during the ad so you could quickly hover over the timeline and skip the ad.
They don't change conciously, they just record it on a different day because the sponsor often times comes after the production of the video. The effect you describe is still a nice thing for the consumer :) @@Alex-mc5yn
So I’ve got $234k sitting in my emergency fund, and I’m ready to finally dive into this investment thing. But man, why can’t prices just chill for a second? Every time I think I’ve got a plan, inflation’s out here like, “Nah, you’re still broke!” Any tips for a beginner trying not to get eaten alive by the market? 🤔
You’re not wrong about inflation-it’s the silent killer of savings! But hey, $234k is a solid start. Before diving in headfirst, maybe talk to a financial advisor? I had no idea what I was doing until one helped me make sense of all the options. It’s a game-changer. Trust me on this.
You both are spot on-investing sounds exciting, but I keep hitting the wall when it comes to finding a legit advisor. Like, where do I even start? Feels like everyone’s either trying to sell you something or just spitting jargon. Help a fellow newbie out!
There are a handful of CFAs. I’ve experimented with a few over the past years, but I’ve stuck with Linda Aretha Reeves for some years now, and her performance has been consistently impressive. She’s known in her field-look her up.
Don’t wait to invest. Find a good index fund, buy into it, and then hold for the foreseeable future. Don’t change your investment based on the current market-that’s how people lose money in investing. The key is to buy early and sell far in the future. Time evens out the highs and lows.
@@musicnlove911 but we don't do well, all the video said is good... in theory at least. In reality? not so much, companies don't put the profits back into the company and give more to the employees, they keep it for the ceo and shareholders. If the money actualy went back in to elevate the wages than yeah society would do good, but society isn't good right now and won't be for years to come
@@musicnlove911Sadly, yes. Companies are (sort of) sentiment entities that have a simple goal - to make as much money as possible for the shareholders. The problem is simple: making more money doesn't always include making the lifes of people better. Actually, it's rarely the case.
@@СашаВолков-ф5нA lot of problems come from ownership of companies passing from people who want to actually run that particular company and see it and its employees do well, to people (including but not limited to large stockholders and private equity firms) who only care about squeezing out a bunch of money and moving on to their next target.
i see two leaps in logic inflation, "people will buy something now, in fear of the prices rising" deflation, "people will put off buying something, in hopes that prices will drop" i don't think i'm typical of the average shopper\spender but if i want eed to buy something i just pay the current price i'm no good at predicting the economy
I think this video focused too much on the consumer base, the truth is, when there is deflation, your money litterally gets more valuable while sitting in your vault, so there is no point in investing it into the economy (stocks, entrepreneurship etc...). Inflation makes it so sitting money is losing value so people are encouraged to invest it into tangible assets. Knowing investments and creating companies is what runs our capitalist economies, then it makes more sense.
Economics is full of theories that don't always accurately reflect reality. E.g. Many electronics get cheaper as they mature but people aren't simple algorithms that keep waiting for price drops. People who buy things earlier get to start enjoying them sooner. In real life, consumers normally don't mind waiting a few months for a sale, but not waiting for years until the prices stop falling.
@@laine3396 I don't really understand your question. Deflation slows down the economy which in turns kills the abundance that a thriving economy gives. That is pretty undesirable.
A perfect storm is brewing in the United States. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
These are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The bigger the red candles, the bigger the green ones.
Investing in stocks can be a wise decision, especially if you have a dependable trading system that can lead to successful outcomes. Personally, I've been working with a financial advisor for about a year now. Starting with less than $200K and I'm now just $19,000 away from making half a million in profit.
Izella Annette Anderson is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for the lead, curiously searched Izella on the web by her full name and spotted her consulting page, no sweat. Just sent her an email, hoping she gets back to me soon.
I sometimes don't get the whining about shareholder returns. If the bank reduced your interest rates on savings, you'd move somewhere else. Shareholders would do the same. "Okay, lower your profits, I want my money back though." If loads do that, the company folds as most companies are private and built off shareholders. So they get their returns, as agreed. As YOU'D expect if giving your money away. If these companies fail, people lose jobs. I get the frustration, but shareholders are entitled to returns, you'd do the same if you could.
Gotta show that YOY profit growth and the shareholders/board don't care what means is used to get it, even if it means dancing on the line of legality. The shareholders won't get punished even if something illegal occurs and their profits won't be forfeited, so it isn't as if they need to care.
I remember being taught inflation in high school and how I got to understand that there are market forces to stabilize, destabilize and of course make the market interesting cos if there are no ups and downs, how then would living be an adventure. However, this is getting to me with market tumbling, inflation soaring, Fed's interest rate cuts which means more red ink for portfolios. I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio, or are there ways I can safely profit from this volatile mkt?
An uptick in volatility is not necessarily a bad thing, there are opportunities to be found even in this whirlwind. Best advice just get yourself a seasoned advisor to guide you in this current market
Exactly why i enjoy my day to day market decisions being guided by a portfolio-advisor, seeing that their entire skillset is built around going long and short term at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not outperform. I've been using an advisor for over 4 years since the pandemic, and I've netted approx. $1.3m after 100s of thousands invested so far.
very much appreciated, just copied and pasted Annette Louise Connors on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
I really want to get in with a financial advisor this year, especially as all markets are hitting highs. I don't want to be too optimistic and end up losing everything.
I'd argue that it's more important to invest in retirement accounts (especially a Roth IRA) than save for a home down payment. If one invests the different that one would pay to own the place that they rent, one can typically retire and buy a home with cash and avoid paying any interest on their home once they can withdraw money from their retirement accounts without penalties. Yes, even with inflation, this can be done. Stocks tend to make about 7% over inflation historically. However it's important to run the numbers for your particular market, because every place is different. Don't forget to factor in all of the extra costs to own vs rent. A mortgage typically only covers about 66% of the total monthly costs to own a particular place (not including utilities that a renter typically pays as well).
Its called expectancy of future prices. So if the consumers expect the future prices to keep decreasing, then of course the current demand would decrease
@@Bouncy03 which percentage of consumer behaviour do you even represent? Following common sense yes people should buy when the price is already low but most people tend to be greedy and when they see a trend that has been consistent for few days or weeks they tend to want to maximize or capitalize on the profits that they can make from the already lowered price and choose to wait longer
As a medieval historian, I can tell you that the modern approach to inflation ("a little inflation is a good thing") is an historical abnormality. Historically, prices stayed relatively the same, even over generations, unless there was a major shock to the economy (like the king discovering a new gold mine, or something).
As the video points out (and as a glance at my own paycheck and job signs in businesses reveal), wages have been growing. People are getting paid more than they were.
@@RyanMcCauley-cj5rwthat's a bit shallow tho. Two parts: first of all, growth doesn't equal that it's a good value. Only that it has been more than before, which turns out to be less than needed. Secondly, inflation gets calculated on ALL goods that get produced or sold in an economy. But different categories of goods vary wildly in price change. Normally when there is an inflation inducing event, whole sectors may be cheaper than before the event, but other sectors rise much, much more. Turns out prices rise most on consumer goods and housing. That leads to the individual consumer having to spend way more on necessities, so even if there is 5% inflation overall, the individuum might have to pay 15%+ more than they used to. So a 3% raise might not even come close to stall the effect of inflation especially on low wage incomes
@@derAtze inflation does not get calculated on all goods, it gets calculated on a set of goods and services, referred to as the 'basket'. This basket represents the pending patterns of your average household and incluses food, medecine, housing, clothing etc. They are also weighted so things like housing will have a more substantial effect on the global inflation rate.
@@hewitc Businesses are trying to hire people for a service and are struggling to find someone willing to accept a low offer? Yeah, sounds like they weren't offering enough. They should be willing to pay more or people will go with a competitor that offers more.
With Market tumbling, Inflation Soaring, Is the stock market actually getting better or could this be the regular new year market manipulation to entice new investors? I'm currently sitting on $500k inheritance and just wondering what better assets than stocks to invest in right now
You need a certified financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
The pandemic's effects, housing problems, foreclosures, global volatility, and our economy's troubles with uncertainty all contribute to stability. All sectors must act swiftly to address worries about rising inflation, sluggish growth, and trade disruptions in order to restore stability and spur growth.
Think about working with tax professionals, estate planners, or financial advisors. They can offer specific expertise and guide you through difficult financial choices.
My job is so demanding that I don't have time to analyse investments. My portfolio has been handled for seven years by a fiduciary who has adjusted to market changes, facilitating successful navigation and well-informed decision-making. Take a similar tack.
5:00 "consumers stop making purchases in hope things will be cheaper"? Am I the only one who buys things because I need them, not because they are cheap or expensive?
Let's say you have a car, or a washing machine, or even a phone, and it still works but you're noticing it's starting to get old. You know that at some point in the not so distant future you will need to replace it. You start looking at prices and you see that they're generally dropping over time. Do you buy now or do you wait? Now, instead let's imagine you see that prices are generally rising over time. Do you buy now or do you wait?
@@ucouldnevah Unfortunately not everyone can do the same, we have a lot of household debt in the US as is and waiting for something to get slightly cheaper doesn't sound like a bad strategy. Like xway2 said, if you already own a durable good that is starting to go bad, you would buy stuff immediately in an economy with a decent amount of inflation. You need to replace your durable good and the price will get higher later anyways, there's no point in holding out as it makes zero economic sense. To replace your old car with a lot of mechanical problems, it'd be better now than later when the price of it will likely be higher. Now think of an economy facing deflation, durable goods could be cheaper in the future if they continue the deflation spiral. You're not thinking about the macroeconomic impact as a consumer, which is not the consumer to blame, you're thinking about the choices you can control. Let's go back to the old car with a lot of mechanical problems example, you see that the car manufacturers are starting to feel the sting of falling sales (and profits). Holding inventory is a huge loss, they would rather take a loss for a few thousand dollars than still holding that car in its entirety (inventory costs + the good is still not sold so you have no cash/accounts receivable to lessen the cost). With falling sales and high inventory costs, companies want to sell their inventory for a lower cost (thus why some closing stores have a "everything must go" sale -- it's expensive to keep the lights on a failing business). You as a consumer have the data and the news to explain that deflation is taking place and notice your desired car's price starting to lower a few hundreds or even thousands at a time. You can buy now or wait a little more to save a few extra dollars in a struggling economy. Of course, this is not to say every person thinks like this, such as yourself, but for the most part a good portion of people tend to and these people influence the economy even without intending to cause damage.
The current economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
Yes, gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my adviser’s moment by moment changes in the market are lightening quick, cos who know how much losses I would’ve had by now.
i have seen a 50% increase in the cost of living over the past 2-3 years. It used to cost me $5k a month to get by, now it's more like 7-8K food almost costs double what it used to and no change in sight (Canada)
Also, governments with a graduated tax structure (e.g., the U.S.) bring in more real tax revenue because the tax brackets aren’t appropriately indexed for inflation.
Hold on, most debt has interest rates greater than 2% which would completely erase this effect. If someone offers to pay you back with less than 2% interest... who would make that deal? I'm gonna guess no one?
@@spaceprior You’d think that, but consider how artificially low the interest rates on U.S. bonds were up until very recently. They had interest rates less than 1% in 2020. For the U.S., foreign governments are big buyers of U.S. debt and have been even when the interest is less than the U.S. inflation rate. If the foreign country has an inflation rate higher than the U.S., it may make sense to invest in U.S. bonds even if the returns do not exceed the U.S. inflation rate.
What are the best strategies to protect my portfolio?, I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I thought about it, and I don't agree. "People buy stuff now because they fear that the price will increase." Well, there's some things that consumers can't put off buying like food and gas. People will buy regardless of the price, they might just use substitutes. Then there's stuff that People buy relatively infrequently like TVs and computers. The prices of TVs ans computers continues to decrease because of Moore's Law. Then there's the things that people really seldom by such as cars and household appliances. I feel that people buy this when they meet the intersection of needing to and having the money to do so. I've never had a perfectly good refrigerator and said, let me go out and get a new one because it will cost more in a year. Prices increasing year after year will always be the case. I'm not saying that inflation doesn't have to exist, but I'm saying that I don't believe that's the reason that inflation exists.
That's one of the things inflation tend to influence. If you keep your money under your bed, you're not putting them into the economy, you're saving them for when you need them. Good for you, bad for the economy. With policies like this, you're more likely to spend those money in some form or the other, put them back in the economy and that keeps things going, it's not about you losing value of your money, is about you not keeping money and actually put them to use. Now this might mean you have to live paycheck to paycheck and are constantly in debt, but what's more important here, the life and well being of common people or the well being of multi billionaires and trillion dollar companies.
@AndiKola I don't think a lot of people put their money under the bed. Illegal immigrants and survivors of the great depression tend to as well as underbanked individuals. However, as long as your money is in a savings account it is contributing to the economy. Even if you are not personally reading the benefits. I personally keep my money in a HYSA and a 401k index fund, so I don't... I don't know I find the whole anti-saving theory to be confusing because I don't know what defines savings and what defines investing in this regard. 🤔
OMG I was looking for this comment! As someone who has always been in the working poor income bracket, I can guarantee you I don't buy like that. When prices are high, I delay buying - even if it's an important purchase. If push comes to shove and I absolutely can't put it off, I buy the cheapest option possible (which usually means thrift/used). Who are these people who go: "Wow everything's so expensive now....better go on a shopping spree!" 🙄
agree, that's a really weird assumption on which the cycle seems to heavily rely on i think most people are like me who is a hospital bill away from bankruptcy, so i can't imagine how the cycle implies that the majority would minmax their purchases as though they have their morning coffee observing the inflation rates. the first thing that comes to mind where this sort of spending behavior is sane and expected is with GPUs -how the prices for them increased heavily due to demand from people using them to mine cryptocurrency for most else i think more studies need to be made about how people spend their money. all this talk seems like it's the businessmen feeding the economists their qualitative data.
Yeah. As soon as they brought up deflation, they immediately jumped to the worst case deflationary spiral. There can be inflationary spirals (hyperinflation) too, so why the instant jump to the worst case scenario for deflation? They also didn't mention how much inflation benefits those with high debt.
It's a really fear of governments... corporations are nothing more than the high-functioning part of government. From the old kings of Europe, corporations like the West India Company still are issued charters and treated as "individuals". It's a practice that wont look great 1000 years from now (IMHO)
@@aolson1111No OP is right, even if he is citing anecdotal evidence. There are entire swaths of demographics that didn't see wages change at all, which this video did a bad job talking about. Generally if you were a middle income earner or higher OR you lived in a metro area, you saw your or your neighbor's wages climb in some way. However, rural residents and lower income earners hardly saw their wages change at all. These groups of people don't have much power or influence to change their wages even as prices go up around them. It's one of the main reasons homelessness is climbing and farmers/small towns are declaring bankruptcy.
@@hewitc doesn't mean its equivalent to the massive amount of wage stagnation the west has seen for the past 30 years. Min wage would be near 25 to 30 $ if it kept up with productivity. the primary driver for labour
So you tell me the economy runs by encouraging people buy things they don’t actually need? Because if they really need it, they won’t wait for lower price tomorrow
Amazing video! I've been following your videos for a while now and have been making strides in the market for the past two years. I currently have over $320k in stocks, but my portfolio is down by 15%. Are there any short-term investment opportunities I can consider, especially with concerns about inflation and prices?
Reason I decided to work closely with brokerage-advisor ever since the market got really tensed and the pressure became so much. I should be retiring in 17months, so I've had an brokerage-advisor guide me through the chaos, it's been 9months and counting and I've made approx. 650K net from all of my holdings.
I'm glad i came across this comment, could you Please let me know who is the consultant that assist you and if you don't mind, how do I get in touch with them
Judith Lynn Staufer is my financial advisor. You can find all the necessary details by searching her name online. Initially, I was hesitant about letting someone else manage my finances, but I'm really glad I did.
You DID NOT explain the topic proposed in the thumbnail. Zero explanation of money volume vs demand, why government needs to print money etc etc. You just chose ONE of the reasons inflation is kept at a certain level, and disregarded the rest. Very poor coverage of the topic.
We know printing can be issue, but government isn't only component of the economy. If people are encouraged during inflation to spend more because of higher prices, you have to encouraged companies to do same thing with wages and not hoarding money, like billionaires do. Money have to circulate.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
thats the trade off for growth and high employment levels. No free lunch. Also wages rise with inflation, so your purchasing power often stays the same or grows over time
That is why you are [[[supposed]]] to get a wage increase to match inflation every year, that is what the govt does for its employees ie soldiers, but then also your company should be doing performance reviews to pay you more for good work, and That is where you would get your Purchasing Power Parity that you afford: a vacation, or a better vacation, or a second vacation, wtc whatever it is you wish to spend money on. That is is supposed to be your reward for good work, but you should definitely be getting a raise every year to coincide w/ the allowed inflation to cover rent, food, utilities.
I love this and DCA everyday on what I'm overweight in. I used to do the auto deposit however I stopped when I couldn't guarantee at what time my deposit would go thru. I like to control the time I deposit and buy daily. Love your video. New subscriber here.
I invest everyday in a round of stocks always looking to DCA down. I increase my deposits monthly. I am never good at timing the market so long term and DCA mindset works for me. How do you go about yours?
@@Jaymilnere I do not invest on my own, I and a few Neighbors in Bel Air Area work with an advisor who prefers we DCA instead of a lump sum purchase, Following this, my portfolio grew 40% in the last quarter.
I do not invest on my own, I and a few Neighbors in Bel Air Area work with an advisor who prefers we DCA instead of a lump sum purchase, Following this, my portfolio grew 40% in the last quarter.
@@Jaymilnere I do not invest on my own, I and a few Neighbors in Bel Air Area work with an advisor who prefers we DCA instead of a lump sum purchase, Following this, my portfolio grew 40% in the last quarter.
@@Jaymilnere You're right, I and a few Neighbors in Bel Air Area work with such advisor who prefers we DCA instead of a lump sum purchase, Following this, my portfolio grew 40% in the last quarter.
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.
The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalizing on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
@@maryHenokNftI actually subscribed for a few training courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with *Gertrude Margaret Quinto* for the last five years or so, and her returns have been pretty much amazing.
This theory is the official dogma of all economic schools and governments. I am working my way to become a consumer on the free market one day in the distant future. Perhaps, then those theories in the video would apply to me. Until then I am just surviving.
I haven’t seen a gas station selling gas for $2.00 nor have I seen a loaf of bread for $.75 …. You are right prices of most consumable items won’t go down
It used to be that all products were physical. I make corn, corn gone, corn bad, I make new corn. Now a lot of product is digital, or intellectual. I make algorithm, it works, you copy/copy/copy and sell, I am doing nothing b/c there is no new algorithm needed, you fire me.
Unemployment in the US is getting lower though. It could also be that companies aren't economical feasible. Thats what happen to the gaming industry after the covid phase, because less people were inside and playing games.
Because they have to please investors, and just merely keep workers in. They "don't have money left" after pleasing investors and paying board of directors. Even if they do, they will invest in growth. Employees just have to no incentive to leave... That's how I see it at least.
The companies I know (smaller businesses) are not laying off people. They are having trouble getting employees even as they offer higher wages. Unemployment is historically low. People can get jobs and have choices. And many today don't really want to do any work that involves getting out of bed, dressing and leaving the home.
They managed to do an entire video about inflation without mentioning that it comes from the government expanding the money supply to pay for all the deficit spending....impressive.
This is exactly right. Liberals can't admit that because it would spell doom for large government spending programs. It's much easier to blame it on "greedy corporations".
No mention of the most important contributor to long term inflation: Money creation When money can be created out of thin air whenever somebody takes out a loan, it devalues all existing money. In the short term supply and demand impact prices, in the long term it is the devaluation of money which continues the unending increase in prices.
@terry9397 Thank you for being like the only person here who actually understands the main cause of inflation. We need to teach economics in high school because almost everyone commenting here obviously never studied economics or classical monetary theory.
Thats not how the accounting always works. Whenever you deposit cash at a bank, a matching deposit is created. In a simple model, this would double the money supply. No prices change however because everyone's networth remains the same, so everyone's purchasing power remains the same. You traded a cash asset for a deposit asset, and the bank recieved a cash asset for a deposit liability. Money doubled, but no networth created. There are ways to create money "out of thin air" which effect networth, but this disconnect means that money supply numbers are not reliable. To add to this, the type of money also matters. Reserves at the fed are a kind of money only used between banks and are not used for consumer goods. There's no reason to believe that increasing reserves at the fed would increase CPI prices.
This is wildly incorrect. "printing money" doesn't devalue currency. period. this is a capitalist myth. devaluing happens because of inflation. inflation happens because of Demand. money printing can CAUSE demand increase. which is where you get printing devalues currency. its not exactly as straight line as the statement implies. im not even talking MMT im talking literally just how money works.
@@harrisjm62 in a closed loop system, perhaps. But this is a global economy. It's not just a coincidence that literally every time government creates a bunch of money they a bunch of inflation. The causation could not be more clear.
I'm only a minute into this video, but I'm not gonna watch the rest of it if they don't mention the literal thing that causes inflation. I actually came to the comments to see if anyone was mentioning that, because if not, this whole video is literally useless. Other than a short term supply shock, these days inflation only comes from the printing press. It's no wonder we have such a bad policy when for some reason, the media does not want to acknowledge that the government is 100% the cause of inflation. I'm not surprised people have no idea.
Tired of the "recession is coming!" threat. Recessive periods come along with equivalent market opportunities if you are well informed and equipped, I've seen folks amass wealth in the midst of economic turmoil and even pull it off easily in favorable conditions. Invariably, the collapse is getting somebody somewhere rich
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
bUt ThAt iS bAd FoR eConOmY!!!!!!11111 How could people buy things when they know the price of things!?!? Its better when prices keep changing all the time so you never actually know the real worth of things!!! Next government and economists are gonna tell us that inch or centimeter needs to change every month too so the buildings they make is good for their economy!
@@vipu6821 I am actually so tired of GDP being the accepted measure of an economy and constant growth being the expected outcome. It's a lot harder to measure quality of life, but I would much rather have the success of an economy be measured by the kind of life that can be enjoyed by the poorest and the average of society.
this is because the cost of making ramen has decreased by around the same amount that the value of yen has decreased, mainly a coincidence. Actual inflation is only due to the central banks increasing the money supply, thereby taxing people's saving, the increase in all prices is only an consequence of this, but the main culprit is the government's greed (search "what happened in 1971?" on google if you want direct evidence)
Thank goodness you brought this up! Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!..
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
As a beginner I would recommend you get started with a professional broker that will guide you through the process and trade for you while you get the daily profit and rewards.
"It's ok if prices rise, so long as wages rise, too." Thats not true. It makes it impossible to safe money for a longer period of time, because it looses it's value.
Great point. We are at the stage now. Where are the only proper way to keep long-term savings is in the S&P. If your savings aren't in some thing that roughly keeps up with inflation at the very least, then, yeah, saving half your paycheque isn't gonna help you much 50 years later when that money is worth a fraction. Inflation means you can't just save money.
@@ORCIproductions productive for what? Just so it can go up enough that it would be the same as if there was no inflation and you just put it under your mattress? It means you end up exactly the same, but with extra steps.
It's the issue with fiat currency, if you want an inflation hedge, buy up gold or some other durable asset. When it comes time to liquidate that asset, it wouldn't have depreciated over time.
REAL inflation is the increase of prices of assets that you are working hard to own, the house you want, the stocks you are analyzing, basically 'assets', that is still 15%.
If you want to see an example of a country that manage to be as close as posibble to 0% inflation/deflation, take a look at Japan before the covid pandemic, their economy basically stayed stagnant for the past 20-30 years since their 1980-90s bubble bursted
What is comical to me now are the working couples who drive around in $65,000 pick up trucks and $55,000 SUV's, have designer everything, frequent luxury vacations, daily gambling, etc.,then complain to me about the price of eggs and milk. Unbelievable.
So if there is always inflation, does that mean prices will always go up, slowly (preferably)? Does that mean that eventually we'll need thousand dollar bills? Does that seem ridiculous?
I mean isn’t that how Japan works as well? Even at the level of coins they have 500 yen and thousands of yen notes so how is that actually making everything affordable and keeping prices stable?
Its true we could just increase it like Japan but we could also just do a currency transfer if we care about keeping a low number. The gov just accepts the old USD and recycles it and only prints a new USD
Japan has stagflation or even deflation; sometimes, low interest rates from the Fed. Prices seem so low because they don't have much inflation, and purchasing power has lowered for the yen because of a drop in value compared to the dollar
A huge driver of inflation is currency devaluation. When the government prints more money to monetize its deficit spending, the supply of money in the system increases. This makes the dollar worth less, which then causes the things we buy to cost more dollars.
I just watched an 8 minute video on inflation and I did not hear them mention the government money supply once. Inflation is an expansion of the money supply by the government. It’s that simple.
it's not. Banks and corporations expand the money supply all the time through the same kind of accounting tricks as governments. Not all balance sheet expansions create networth or purchasing power. no additional purchasing power means no way for prices to increase. Furthermore, not all types of money the government puts out has to do with consumer goods. reserves at the fed are a kind of money only used between banks, as such they would have no affect on the consumer price index. Treasuries are another kind of money only used for finance and investing, not consumption, so we shouldn't see an effect on the CPI either.
All of those things you mentioned are priced in dollars. Consumer goods, treasuries, and the balance sheet at the fed. As the government prints more money and banks expand the amount of credit in circulation, there are more dollars chasing the same amount of goods. That is what makes the prices go up. Treasuries are nearly worthless in a inflationary economy because any gains you make from holding that bond for years get eliminated by the reduced spending power of the dollar
Thats not how it works at all. You need a textbook that's been updated since the 1950s and one that uses balance sheet accounting. The treasury prints very little cash. 2/3 of US dollars are actually created outside the US in foreign banks that have no account at the fed. This means 2/3 of USD have nothing to do with the US government at all. A Chinese company may get a USD loan from a Turkish bank to buy Iraqi oil. The Turkish bank doesn't need any dollar deposits to create the loan, it can simply accept the foreign exchange risk. The quantity theory of money doesn't work for a credit economy and there's no easy way to infer inflation from the money supply as there are too many different types of money and too many ways to create money which can't be easily aggregated.
@@Brunopeter222 I'll add a second comment. Banks don't necessarily expand credit when the treasury prints cash. The flow is often the reverse. Banks expand credit as "needed" and the Treasury only prints enough physical cash to help with keeping deposit account liquid. The Fed's balance sheet isn't "priced in dollars", you can't buy a balance sheet and there are foreign currencies/treasuries included on it. Treasuries are considered money, just as cash is. They're both different instruments, but have the same denomination. You're confusing money to be only the denomination part and that money can only be 1 instrument. As I mentioned before, more dollars doesn't mean they are chasing more goods. Various money instruments don't chase goods at all, and some that do are only put on balance sheets to help with liquidity not to chase goods. Some instruments, like loyalty rewards, only chase specific goods and yet no one considers these inflationary but it's a trillion dollar private industry.
One thing this video misses: innovation makes products cheaper which drives deflation. Look at the cost of a big screen TV today compared to 10 years ago, for example. Businesses are constantly trying to make products less expensive so that they are more competitive in the marketplace. The government has many ways that they prevent this not just interest rate. Regulations are another big tool. They regulate business which make certain products more expensive than they need to be. This is why politicians are so rich: they use regulations to pick the winners and losers in an economy so they can always invest in the winners. The result of this is things being more difficult for all of us. Regardless of whether government chooses interest rates or regulations, the fact is that they deliberately make things more expensive knowing that wages will not keep up. Politicians do not care about us. They only care about themselves.
I think one of the most entertaining things a business owner can do is cut prices and watch their consumers flourish and the utter chaos of the other businesses in the sector.
Cutting price has many drawbacks. You cut down your margin, so your ability to grow the business, recruit, train, retain people, invest in tools etc... is getting even more limited. Also, customers tends to associate price with value, so a lower price can mean a perceived lower value. You are basically changing who you are selling your product to, and this is a massive change for a business. Finally, it won't take long for your competition to cut their price also down. Soon, this is a race to the bottom, where each companies is spending their time / money / expertise not improving their product, but trying new and creative way of cutting down expenses and cost, so they can cut down the price. Everything is more complicated than it seems.
Forgot about AI, now companies don't have to hire more to keep up with demand, they can cut employees, and increase prices with nothing to stop them, and that's mass layoffs with extreme inflation and unemployment on the rise... This is the state of 2024
Capitalism has mechanisms to prevent price gouging like competition (though that fails when patents or the likes prevent it), so where AI cuts jobs, it also cuts costs so the end consumer will pay less.
The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?
I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of five percent. Put money aside for the times when the market really starts to bounce back.
45% of Americans do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor.
Your adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same adviser and how I can get in touch with them?
She goes by ‘Carol Vivian Constable’’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
According to the video, you the consumer have the power to stop inflation or cause deflation. Stop overspending. Refuse to buy things that are too high and you don't need. They try to scare you with threats that there will be less employment if you do that. If you cause deflation, less people will need to work to survive. A whole family surviving from one working wage is better than everyone trying to seek employment. You have the power. But I guess that may never happen since we no longer have the same type of family support structure as we did before. Almost everyone's family is broken these days.
Ah yes, the perfect solution to a systemic problem. Insist that the real issue is the individual choices of people in the system, and blame them for not choosing differently. We definitely aren't heavily influenced and shaped by our environment as human beings are we
As another commenter put it (17 upvotes), "They managed to do an entire video about inflation without mentioning that it comes from the government expanding the money supply to pay for all the deficit spending....impressive." However: the government does have deficit spending primarily to help poor people. So, yes, if people individually acted in a way that helped poor people, then the government would not have to step in and create inflation. "Not overspending" may not be enough to accomplish that. When people save money while buying things, like by going to Walmart and eating at home instead of at restaurants, what do they do with the money they save? Often, they put it towards other things that they want: such as better housing. This drives up prices for other people, with rich people who own lots of property being the main benefactors, and poor people who don't own their homes being the main victims. There is a solution, but it isn't obvious: and so, without something unexpected happening, people won't use it and inflation will continue, as well as global warming etc.
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
Does anyone have any recommendations for reputable financial advisors who specialize in investment planning? I'm looking to explore professional guidance in managing my finances effectively.
Two percent is a lot higher inflation tax than we think. Think about it this way, NATO has a two percent target for their defense budget. And countries say it’s too expensive. Our American government is not efficient at all. Waste money everywhere, laws should expire in different amounts of time. All these laws that waste money should only last a couple years
Not really comparable, NATO asks 2% of GDP, GDP is very much huge, and is so much greater than the actual government's budget (usually around 15%). You are looking at this wrong.
I’m pretty sure people will not hold off from buy a carton of milk half the price it was yesterday. Like no. People will hoard that stuff because they know prices will rise again. Necessities essentially have an infinite demand.
Lol clearly you never learned about the Substitution Effect. Example: people switch from expensive beef to cheaper pork, pork to cheaper chicken, and finally chicken to rat in a siege or apocalypse scenario.
@@tonypalmentera7752 I lived in Brazil through their hyperinflation period, I may have first hand experience that economics books don't tell you because it isn't based in real life, but that's me. I have absolutely no nostalgia of the time when my family had to rush to the market to make the monthly purchase of food when my dad got his payment because prices were raised every single day. In the worst periods prices would raise twice a day. So yeah, believe in what you will.
News Alert! Inflation hasn't just started to affect us. People have been suffering greatly from inflation for almost a century, but notably after 1971. During the industrial revolution, prices of products and services were auctioned down to the point that consumers could literally buy them for as little as a penny thanks to a free market and sound money. All of the problems we have today are a result of government meddling.
It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
I think it's great to use a portfolio advisor when investing. Before I met with a certified portfolio advisor during the pandemic crash in March 2020, I had recently started having terrible dreams. Finally, with the help of my advisor, I was able to increase my initial investment of $400k to over $2.8 million dollars.
Where may one locate a wise FA? Even while I like the idea of using their services, it's unfortunate that recent stock market catastrophes have started to happen more frequently.
Yes, ‘Jessica Lee Horst’ made headlines in 2020, but I'm not sure if I can bring her up in this context. She manages my portfolio and acts as a counselor for me.
Come to Australia - we have 2 major grocery stores that have made record profits in the past 2 years not only in Australia, but the world. A country of 27~ million having 2 companies making the most amount of profit in the world. It also doesn’t help that these two companies also own most of the petrol stations and liquor stores. What about banks? There are 75~ banks in AUS and 95% of them are owned by the four biggest ones.
It's such a tough one, because I love the idea of capitalism and free markets, but they inevitably lead to consolidation. It's basically a law of nature at this point. How on earth do we keep the benefits of capitalism while stopping all of this consolidation?
I kinda expect this video to answer what would happen if inflation change keeps happening. $1 right now isn't as valuable as $1 100 years ago. Does that make money less and less valuable? If it is, is that a problem? How to solve that problem so that we don't keep adding zero on our money just because inflation keeps happening? Because personally I don't want my $1 to be less valuable in the future than now
Any individual dollar can become less valuable but don't forget the rest of the money supply. Also its not like this is unique to the US. Do you look at the Yen and think "useless currency" or do you think "Oh, I can make 4.5 million yen per year, guess these prices make sense". Also you can always just do a currency transfer. 1000 USD for a new USD and the government will continue to accept old USD but will only print new USD and will recycle the old USD it receives to new USD. Its way better we have to do this kind of thing every couple of centuries than having to constantly worry about a deflationary spiral.
@@grimaffiliations3671they used to, not anymore. Or you are lucky to get a one-off 20% rise after 3-4 years of inflation being above 5% (which is compounding, unlike the wage increase)
Why do I feel like these “inflation explanation” videos are mostly just the narrators trying to justify companies’ greed by using economy theories to gaslight the average person into thinking that the more expensive the things they buy the better?
Let me ask you a serious question, have companies ever not operated purely for profit? Is not the entire point of a company to make as much money as possible? And followingly, is this a bad thing?
We want deflation. But to have steady deflation we need to consistently incentivize spending. People must be encouraged to continue to spend, even as prices go down. So, they need more cash. This is where things like Universal Basic Income come in. We've just never done this before and it's scary. Technology is a deflationary thing. If we want things to improve, we must embrace sustainable deflationary systems.
@@RT-. nope. wrong and wildly incorrect. it can be paid for with Social spending that's already in the budget for most countries. Canada's will actually DECREASE spending if we swapped to a negative income tax model. I've ran the numbers. its extremely feasible to set a bottom for the economy.
You incentivize people to spend by making good products that people think is worth giving away their hard earned money, inflation just creates the opposite incentive to make worse and worse products. You can see it now and last few years especially when companies just keep cutting and worsening their products while keeping or raising prices. If there was 0 inflation or mild deflation those companies would need to make good products so people want to actually buy them, also there would be less waste in general when people would not buy some useless trinkets and products would be more like many years ago when they were designed to last as long as possible and be good quality.
@@NearQuasar Sustained Deflation. leads to what your refering to. Deflation happens all the time with products. the issue is it doesn't happen on the economy as a whole at all. a little bit of deflation is actually a good thing every few years. but Capitalism will resist the Boom and Bust cycle it enforces. so never deflate ever because bahhhhhddd
We ALL care, we just mostly feel powerless to stop it b/c that requires struggle, like for real real struggle... like, physically taking the means of production away from corporations and them legally changing the circumstances afterward to make it Just. This slaughterhouse no longer belongs to JBS, it is worker owned, let's say that fair compensation is covered by back owed wages, deal complete. Co-op now registered w/ the BBB.
@@stt.9433 if you study enough about Gold and Bitcoin, you'll learn that gold is the worst performing asset compared to stocks, S&P500 and you'll learn that Bitcoin is the best performing asset in the last decade and huge companies and banks are stacking Bitcoin. Learn, research it now
@@stt.9433 Dont you think it would be bit weird if the price of BTC was stable and still gained all the gains it had? You pay the price of gains in volatility, nothing can go up so much and be stable, the stability will come later when its much bigger and when media isnt full of misinformation and the space isnt full of scammers trying to sell their dog, cat, trump and elon coins. Also gold havent kept up with inflation for at least 40 years so I would say you dont gain anything going from dollar to gold when both lose value against inflation.
As an economist, I'd like to point out flaws with such reports/strategies. 1) If prices rise and wages rise too, we end up spending more money to buy the same goods which is currency devaluation. 2) People plan for their long term purchases despite inflation. If you were to buy a car, you will not coz prices will rise later but coz you need it to move around. 3) Inflation is very good for firm profitability and dividend payouts since the shareholders spend the money before it's devaluation trickles down to the economy. 4) Interest rate hikes like the West did bring down inflation but cause recessionary pressures to the economy. 5) Credit allocation like the East Asians did bring down inflation while still spurring economic expansion via GDP expenditures rather than speculative ones such as cryptos, stocks, etc.
Overall they pretty much did under the gold standard. They fluctuated but generally remained the same average over the long term. Fiat is a disease costing us greatly.
The gold standard just experienced the same problems they laid out. No control over money supply means deflationary spirals. How is fiat the problem when the gold standard experiences these problems?
@@daviddavidson6278 Gold standard self regulates, no need to 'control' the money supply. You're a Keynesian fiat thinker, your frame of thinking is all distorted like a fish that doesn't know it's in water.
@@michael2275 gold standard doesn’t self regulate, what’s the difference between a GS system where the amount of gold doubles and a USD system where the amount of USD doubles.
@@daviddavidson6278 Gold consistently has had 1-3% inflation through history naturally regulated by geology and advancement of technology. Also, if more gold is found the spending power goes to the miner who has costs so must sell not a government that monetizes it's debt money into existence by the central bank at will and inevitably abuses it causing huge inequality like now. You're totally a fish that can't see the water lol.
"Inflation is good" but also having inflation-indexed wages is bad because that just drives up cost or something. So the whole system relies on workers being paid less and less while expecting them to spend more and more. And then we have the shrinkflation and everything on top of that because if the prices would keep creeping up a few percent a year people would lose their minds...
So by the logic that these economists are talking about, thats even better because it gives people even bigger reason to spend right? RIGHT?! Why wait people to spend their money every few months when you can make them spend every week! Inflation is so good we all love it yes give it to us!
I wasn't taught any of this in school. That deflation chart doesn't make any logical sense to me. I'm also curious about why going below 0% is a challenge. I'm uninformed about economics
It is possible to go below zero. Japan, Switzerland, Sweden, Danemark and the Euro zone all did it. This is missing from the video, but the mechanism is the same, lowering interest rate encourage spending.
its a challenge because governments being net debtors have an interest in stealing from you, so they spend more than they tax which means there's an ever increasing amount of currency in circulation
@@elijahschnake3863thats not how thst works, if the us spent 9000000099t dollars tommorow they would have to borrow it as the fed doesn't just give them money
@@JZTechEngineeringin an ideal setting maybe. in a setting where most governments run massive debts which they want to inflate away, that is absolutely correct.
I don't think we spend enough time talking about the extraordinary profiteering on the part of some very large corporations the last few years. We also need more tools for the federal government to control prices, like a windfall profits tax.
Not a single word about money printing, by far the main cause? If the whole system is 1 coin = 1 apple, and you print 1 more coin, it becomes 2 coins = 1 apple. Suddenly, your coin is worth 50% and the other 50% goes to the one who printed it. At the moment when governments spend the freshly printed money, it’s still worth the same; inflation happens when the system absorbs it and adjusts to more money for the same number of goods, some time later. Thus, inflation is taxation without legislation.
![BRASIL vs. URUGUAY [1-1] | RESUMEN | ELIMINATORIAS SUDAMERICANAS | FECHA 12](http://i.ytimg.com/vi/-hWBAuxF1eY/mqdefault.jpg)
Inflation: 8%.
Pay raise: 2.6%.
Boss: "Congratulations on your pay raise!"
Yeah, we the biggest pay raise we've ever seen in decades. And it's still far below inflation. But apparently we're supposed to be grateful for this?
The US economy had much worse inflation in the late 1970's--early 80's. In my experience with a big company raises were from 5-7%. Commercial banks paid 5% (fixed by law) interest so people put their cash in money market funds (something new) that paid 8-9%. Mortgages were well over 10% (for a 15-30 year fixed rate) with 1 or 2 % points upfront. Credit cards charged 20%. Today's economy looks pretty good to me.
@@hewitc Young people could afford houses back then, especially with fewer credentials (like no university degree). Now, they can't. Today's economy looks not so good to me.
Also, things are supposed to improve. Mortgage rates may have been higher, but home costs were much, much lower. Also, how often did homes have high HOA fees? When we add everything up, the economy looks good to you because you are old and saved money and don't seem to understand the struggles of the younger folks who never got the chances you did.
Nobody forced you to get a credit card. If the rate didn't look good, you could just not use one. Housing, on the other hand, is something everyone needs, so when you are priced out of home ownership and have to rent forever, it's a little hard to say that things are good today.
And don't even get me started on student loans....
On average wage rises are now outpacing inflation.
Let's not get distracted by facts though.
@@gorgolyt Only for CEOs. When was the last time minimum wage was increased?
Why does economics always feel like an big international game of tightrope walking
It is
its more like a tug of war.
More like musical chairs.
Because it is. I mean it reaaaally is.
Because they don't know what they're doing
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
Mind if I ask you recommend this particular professional you use their service? I have quite a lot of marketing problems.
I'd like to give significant credit to Melissa Terri Swayne who maintains a strong online presence. You can easily find her through a web search. While there are some other individuals worth considering, it may be more challenging to locate them. In addition, She has provided excellent guidance throughout the year.
Upon conducting an online search of her name, her website promptly came to my attention, sparking my interest. The initial impression is favorable, and I plan to schedule a conversation with her. I'll be sure to keep you informed about how it unfolds. Thank you.
Inflation allows companies to cut your wages without cutting your wages.
In the long run, nominal wages actually rise with inflation, increasing production costs and thereby reducing aggregate supply.This is how the economy self adjusts.
did you not watch the video? With the exception of COVID-19 2020-2023, wages historically have outpaced inflation. Wages are back to outpacing inflation again in 2024.
Every year in the last 5 years I got 3% raise but the inflation was higher, so today I can spend less than 5 years ago
@@fuzzywhyyy9639unfortunately the short-run can last very long though
"Inflation allows companies to cut wages without cutting wages" isn't necessarily a bad thing. Even in good times, some businesses do poorly because they're badly run, are overinvested in declining markets, or produce things that are losing their appeal to consumers. Inflation allows these companies to reduce the proportion of their income spent on wages while avoiding the morale shock of actually cutting wages. Sometimes this just delays these employers' inevitable collapse, but sometimes it gives them a chance to turn things around.
"Companies make more money, which means more people have jobs." Are you sure about that?
classic trickle-down economics scam
@@ryen7512 until people stop buying to the big ones... and they lower their prices, check the Argentina case.
Or "deflationary spirals can result in massive layoffs" pretty sure companies already do that anyway
Yeah, pretty sure. Try working for a company where revenue is not growing, very soon you will find out they will not hire anyone or, even worse, they will layoff people. Furthermore, no increasing revenues also mean no increasing salaries (raises).
What I'm sure of is that when companies make more money, they quickly look at ways of reducing costs to further maximize income. Labor cost gets their attention!
Stability is a result of our economy's struggles with uncertainty, housing issues, foreclosures, global volatility, and the pandemic's consequences. To restore stability and promote growth, all sectors must respond quickly to concerns about growing inflation, slow growth, and trade disruptions.
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
Sonya Lee Mitchell maintains an online presence that can be easily found through a simple search of her name on the internet.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
You completely forgot about "parachute" pricing. This is where prices go up, the companies like the additional revenue and purposely slow the decline back to an acceptable amount. 🤬
It's a relative of inflation price-gouging, where companies jack up the prices to increase their profit margin, and then lie to the public and say that they're just "passing on inflationary costs" while simultaneously reporting record profits
Yeah, sticky prices, too. High inflation begets high inflation, unfortunately, and it could be difficult to reduce sticky inflation. Thats why central banks need to act quickly and aggressively to reduce inflation.
@@jennastephens1224well it’s all fractional. As inflation goes up more money exists. For companies to impress shareholders they need to outdo this rate of increase. Or at least increase. If they are increasing more than a 1:1 with inflation which is necessary to be investment grade over time, this must occur. Of course billionaires and ultra millionaires have lots of money in this but tens of trillions of dollars are held by regular people in pensions and retirement accounts. Those accounts rely on the companies to produce record profits nearly every year because they have to improve over time. It’s all cyclical. You can complain about one part of the system but you have to understand how changing it will affect the other parts. Companies do not lower prices because the economy is still inflating meaning more money is entering it. Unless deflation occurs prices will automatically never lower after periods of rise.
Their main concern is profit and if they actually lower prices too slowly then they will lose out on profit. The reason they do this is because inflation periods are uncertain, it's not the fault of the companies but of government and central banks.
Increases in wages and buying power never seems to “trickle down” nearly as fast as increases to prices, which seem to happen as fast as the companies can print the new stickers.
We are getting this concept told for decades now. But does it really make sense?
Do you buy a new laundry machine/smartphone/coffee because you fear that it will be more expensive next year?
Would you visit restaurants less frequently, when their prices get cheaper, expecting that prices will fall even more next year???
You are not understanding the argument. That is why they have to keep explaining it to you for decades.
This Simmons washing machine is $600, in two years it will be $400... correct.
But a new washer that is the equivalent of where in the spectrum that Simmons one had been on it's release to the market, that equivalent, it is not $600, it is $650.
Not the same exact item at different point in time. The same type of item, a mid-range, gadget w/ the bells and whistles customary to the development of like items.
@@Hollywood041 please lern some grammar and spelling before you answer. I'm not talking about technological superiority but homogeneous goods.
Of course it doesn't make sense because it's a lie to obfuscate that inflation is good for governments and rich people which is why they create inflation.
@@MRFLOPPYmr *learn
@@Nautiliam Thanks. As a german I'm always eager to improve👍
Inflation is gradually going to become part of us and due to that fact, any money you keep in cash or a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
This is considerable! think you could suggest any professional/advisors I can get on the phone with? I’m in dire need of proper portfolio allocation
@@RonaPatton
Rebecca Lynne Buie is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
We're only a handful of years away from having a minimum amount of money that must be in our bank account at all times. Living paycheck to paycheck will be illegal. If the government screens you and your account and it has less than the required amount, the government seizes everything that you do have and places you in prison.
@@RickyIcecubes Being a billionaire doesn't mean you can't invest; in fact, a diversified portfolio is essential. Just look her up on Google to see her impressive track record. She's licensed and has experience working with several billionaires like you.
lol bots and bots
Except these days companies take all the profit of inflation for themselves and still lay off people.
There ARE no 'profits from inflation', this is a lie, and to be fair, this video parrots this lie to you, which is why you restponded. HOW does printing more pieces of paper create more purchasing power in the real world ? Of course it does not. Companies lay off people because they no longer need workers, full stop. The economy does not 'need' 2 % inflation, the economy needs 2 % (or more) real growth. If real growth in real profits was happening, then more workers would be needed, and since this current 'growth' is just an inflationary lie, of course no new workers are needed, and as customers are squeezed by inflationary theft of their real purchasing power, less employees are needed to earn what little real profits are still out there.
40+ years of consolidation. Where once there were a dozen suppliers now there are two or three. We need more competition in the market to drive down profits.
We need deflation ASAP. 2% inflation never benefited the people. It's always been for the corporations bottom line. Charge more and more. People always paying the price.
Over the past few years layoffs have been low (except in the tech sector) and wage gains has been high (especially among low income workers).
@@WhyWorldWet Not productive businesses, those who control the new currency pumped into the system.
Why do you think central bankers, bankers and wall street stay on the top? It's not hard when they get the new dollars first.
And when they spend tomorrows dollars at today's prices... well, they can consolidate their control on resources despite their mismanagement
That was a weird ad spot. Came out of nowhere
The increased CPM enable Vox to hire 1/20th more of an independent contractor though 😊
That's the idea, when it's predictable, you would be more inclined to skip it. Many regular youtubers do that as well as the opposite of it when they would change into a different set of clothes during the ad so you could quickly hover over the timeline and skip the ad.
They don't change conciously, they just record it on a different day because the sponsor often times comes after the production of the video. The effect you describe is still a nice thing for the consumer :) @@Alex-mc5yn
@@Alex-mc5yn i'm more inclined getting annoyed and cursing than i am to actually sit throe listening to the garbage
So I’ve got $234k sitting in my emergency fund, and I’m ready to finally dive into this investment thing. But man, why can’t prices just chill for a second? Every time I think I’ve got a plan, inflation’s out here like, “Nah, you’re still broke!” Any tips for a beginner trying not to get eaten alive by the market? 🤔
You’re not wrong about inflation-it’s the silent killer of savings! But hey, $234k is a solid start. Before diving in headfirst, maybe talk to a financial advisor? I had no idea what I was doing until one helped me make sense of all the options. It’s a game-changer. Trust me on this.
You both are spot on-investing sounds exciting, but I keep hitting the wall when it comes to finding a legit advisor. Like, where do I even start? Feels like everyone’s either trying to sell you something or just spitting jargon. Help a fellow newbie out!
There are a handful of CFAs. I’ve experimented with a few over the past years, but I’ve stuck with Linda Aretha Reeves for some years now, and her performance has been consistently impressive. She’s known in her field-look her up.
Just looked up Linda Aretha Reeves-she seems exactly like what I’ve been searching for to guide my financial journey. Thanks for the recommendation!
Don’t wait to invest. Find a good index fund, buy into it, and then hold for the foreseeable future. Don’t change your investment based on the current market-that’s how people lose money in investing. The key is to buy early and sell far in the future. Time evens out the highs and lows.
So when they say.. "inflation is a good thing"..
You mean.. "it's a good thing for companies. We don't care about the average people"
@@musicnlove911 JEff please relogin.
@@musicnlove911 but we don't do well, all the video said is good... in theory at least. In reality? not so much, companies don't put the profits back into the company and give more to the employees, they keep it for the ceo and shareholders. If the money actualy went back in to elevate the wages than yeah society would do good, but society isn't good right now and won't be for years to come
And its good for the government because they can just spend more money
@@musicnlove911Sadly, yes. Companies are (sort of) sentiment entities that have a simple goal - to make as much money as possible for the shareholders. The problem is simple: making more money doesn't always include making the lifes of people better. Actually, it's rarely the case.
@@СашаВолков-ф5нA lot of problems come from ownership of companies passing from people who want to actually run that particular company and see it and its employees do well, to people (including but not limited to large stockholders and private equity firms) who only care about squeezing out a bunch of money and moving on to their next target.
i see two leaps in logic
inflation, "people will buy something now, in fear of the prices rising"
deflation, "people will put off buying something, in hopes that prices will drop"
i don't think i'm typical of the average shopper\spender
but if i want
eed to buy something
i just pay the current price
i'm no good at predicting the economy
I think this video focused too much on the consumer base, the truth is, when there is deflation, your money litterally gets more valuable while sitting in your vault, so there is no point in investing it into the economy (stocks, entrepreneurship etc...). Inflation makes it so sitting money is losing value so people are encouraged to invest it into tangible assets. Knowing investments and creating companies is what runs our capitalist economies, then it makes more sense.
@@DemsWThat's better, thanks
Economics is full of theories that don't always accurately reflect reality. E.g. Many electronics get cheaper as they mature but people aren't simple algorithms that keep waiting for price drops. People who buy things earlier get to start enjoying them sooner. In real life, consumers normally don't mind waiting a few months for a sale, but not waiting for years until the prices stop falling.
@@DemsW If the ultimate goal of capitalist economies is to make people richer, why not just use deflation as a way to do that?
@@laine3396 I don't really understand your question. Deflation slows down the economy which in turns kills the abundance that a thriving economy gives. That is pretty undesirable.
A perfect storm is brewing in the United States. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
These are the conditions in which life-changing money is made by those who remain calm, patient, and take controlled risks. Volatility goes both ways. The bigger the red candles, the bigger the green ones.
Investing in stocks can be a wise decision, especially if you have a dependable trading system that can lead to successful outcomes. Personally, I've been working with a financial advisor for about a year now. Starting with less than $200K and I'm now just $19,000 away from making half a million in profit.
@@mellon-wrigley3 That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
Izella Annette Anderson is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for the lead, curiously searched Izella on the web by her full name and spotted her consulting page, no sweat. Just sent her an email, hoping she gets back to me soon.
3:47 < AD skip
3:04 - 3:47
get sponsorblock
@@flamerider03 I have sponcorblock, but people on mobile don't.
Get revanced
@@Occidentally Most people choose not to get it
Companies cut labor no matter what because they are only concerned with increasing shareholder profit.
Correct
In every country in every side of this world. Math matters, no feelings. Greetings from Venezuela, bigger hiperinflation on this planet.
I sometimes don't get the whining about shareholder returns. If the bank reduced your interest rates on savings, you'd move somewhere else. Shareholders would do the same. "Okay, lower your profits, I want my money back though." If loads do that, the company folds as most companies are private and built off shareholders. So they get their returns, as agreed. As YOU'D expect if giving your money away. If these companies fail, people lose jobs. I get the frustration, but shareholders are entitled to returns, you'd do the same if you could.
Gotta show that YOY profit growth and the shareholders/board don't care what means is used to get it, even if it means dancing on the line of legality.
The shareholders won't get punished even if something illegal occurs and their profits won't be forfeited, so it isn't as if they need to care.
well yes!
I remember being taught inflation in high school and how I got to understand that there are market forces to stabilize, destabilize and of course make the market interesting cos if there are no ups and downs, how then would living be an adventure. However, this is getting to me with market tumbling, inflation soaring, Fed's interest rate cuts which means more red ink for portfolios. I'm still at a crossroads deciding if to liquidate my $125k bond/stock portfolio, or are there ways I can safely profit from this volatile mkt?
An uptick in volatility is not necessarily a bad thing, there are opportunities to be found even in this whirlwind. Best advice just get yourself a seasoned advisor to guide you in this current market
Exactly why i enjoy my day to day market decisions being guided by a portfolio-advisor, seeing that their entire skillset is built around going long and short term at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not outperform. I've been using an advisor for over 4 years since the pandemic, and I've netted approx. $1.3m after 100s of thousands invested so far.
@@chadgriffith1969 this is huge! your advsor must be grade A, mind sharing more info please? in dire need of proper asset allocation
this is huge! your advsor must be grade A, mind sharing more info please? in dire need of proper asset allocation
very much appreciated, just copied and pasted Annette Louise Connors on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
It's tax on people who stuff their money in their mattress.
You're not wrong.
Incentivizing more productive use of capital Is a side effect of inflation.
to those most in debt (the richest have access to most debt).
It's devastating to people on fixed incomes like pensioners and people on welfare.
But putting your money in your mattress is straight up not a good idea, risk premiums are highly correlated with inflation
So.... Billionaires?
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
I really want to get in with a financial advisor this year, especially as all markets are hitting highs. I don't want to be too optimistic and end up losing everything.
I'd argue that it's more important to invest in retirement accounts (especially a Roth IRA) than save for a home down payment. If one invests the different that one would pay to own the place that they rent, one can typically retire and buy a home with cash and avoid paying any interest on their home once they can withdraw money from their retirement accounts without penalties. Yes, even with inflation, this can be done. Stocks tend to make about 7% over inflation historically. However it's important to run the numbers for your particular market, because every place is different. Don't forget to factor in all of the extra costs to own vs rent. A mortgage typically only covers about 66% of the total monthly costs to own a particular place (not including utilities that a renter typically pays as well).
Sharon Ann Meny is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
the consumer mentality in the cycles is so wrong.
you don't buy less when price is lowering. you buy less when you have less money.
Its called expectancy of future prices. So if the consumers expect the future prices to keep decreasing, then of course the current demand would decrease
@@Shafiksz nah
prices decrease because of demand, not thd other way
@@Bouncy03 you're using common sense to depict facts. That's why you're here
@@Shafiksz hey I think you don't know but... I'm the consumer
@@Bouncy03 which percentage of consumer behaviour do you even represent? Following common sense yes people should buy when the price is already low but most people tend to be greedy and when they see a trend that has been consistent for few days or weeks they tend to want to maximize or capitalize on the profits that they can make from the already lowered price and choose to wait longer
As a medieval historian, I can tell you that the modern approach to inflation ("a little inflation is a good thing") is an historical abnormality. Historically, prices stayed relatively the same, even over generations, unless there was a major shock to the economy (like the king discovering a new gold mine, or something).
Historical y we had far more economic crisis then today
yes, but greed was allowed to balloon.
They also burned witches in the middle ages. But people get smarter.
Lol, you are no economic historian. Periods of inflation and deflation have both been common historically.
@@pfefferle74 burning of witches only really picked up in the modern age and was rare in the middle ages
More people have jobs, but you forgot the part where the people who have jobs get paid the same.
As the video points out (and as a glance at my own paycheck and job signs in businesses reveal), wages have been growing. People are getting paid more than they were.
@@RyanMcCauley-cj5rwthat's a bit shallow tho. Two parts: first of all, growth doesn't equal that it's a good value. Only that it has been more than before, which turns out to be less than needed.
Secondly, inflation gets calculated on ALL goods that get produced or sold in an economy. But different categories of goods vary wildly in price change. Normally when there is an inflation inducing event, whole sectors may be cheaper than before the event, but other sectors rise much, much more.
Turns out prices rise most on consumer goods and housing. That leads to the individual consumer having to spend way more on necessities, so even if there is 5% inflation overall, the individuum might have to pay 15%+ more than they used to.
So a 3% raise might not even come close to stall the effect of inflation especially on low wage incomes
wages have been going up. the businesses I know keep offering higher wages because they can't get anyone willing to work.
@@derAtze inflation does not get calculated on all goods, it gets calculated on a set of goods and services, referred to as the 'basket'. This basket represents the pending patterns of your average household and incluses food, medecine, housing, clothing etc. They are also weighted so things like housing will have a more substantial effect on the global inflation rate.
@@hewitc Businesses are trying to hire people for a service and are struggling to find someone willing to accept a low offer? Yeah, sounds like they weren't offering enough. They should be willing to pay more or people will go with a competitor that offers more.
With Market tumbling, Inflation Soaring, Is the stock market actually getting better or could this be the regular new year market manipulation to entice new investors? I'm currently sitting on $500k inheritance and just wondering what better assets than stocks to invest in right now
You need a certified financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
Amazing! I hope it's okay to inquire if you're still collaborating with the same fiduciary and how I can get in touch with them?
“Sonya Lee Mitchell” maintains an online presence. Just make a simple search for her name online.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
The pandemic's effects, housing problems, foreclosures, global volatility, and our economy's troubles with uncertainty all contribute to stability. All sectors must act swiftly to address worries about rising inflation, sluggish growth, and trade disruptions in order to restore stability and spur growth.
Think about working with tax professionals, estate planners, or financial advisors. They can offer specific expertise and guide you through difficult financial choices.
My job is so demanding that I don't have time to analyse investments. My portfolio has been handled for seven years by a fiduciary who has adjusted to market changes, facilitating successful navigation and well-informed decision-making. Take a similar tack.
Could you please inform me how to use their service to get in touch with this particular coach? Unlike the rest of us, you appear to have the answer.
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
5:00 "consumers stop making purchases in hope things will be cheaper"? Am I the only one who buys things because I need them, not because they are cheap or expensive?
No, and 99.99% of the population does the exact same. What they are saying in this video is total ballocks, much like everything else that Vox posts.
Let's say you have a car, or a washing machine, or even a phone, and it still works but you're noticing it's starting to get old. You know that at some point in the not so distant future you will need to replace it. You start looking at prices and you see that they're generally dropping over time. Do you buy now or do you wait? Now, instead let's imagine you see that prices are generally rising over time. Do you buy now or do you wait?
@@xway2i don’t look at prices😒 i buy stuff when i need it…
@@ucouldnevah Unfortunately not everyone can do the same, we have a lot of household debt in the US as is and waiting for something to get slightly cheaper doesn't sound like a bad strategy. Like xway2 said, if you already own a durable good that is starting to go bad, you would buy stuff immediately in an economy with a decent amount of inflation. You need to replace your durable good and the price will get higher later anyways, there's no point in holding out as it makes zero economic sense. To replace your old car with a lot of mechanical problems, it'd be better now than later when the price of it will likely be higher. Now think of an economy facing deflation, durable goods could be cheaper in the future if they continue the deflation spiral.
You're not thinking about the macroeconomic impact as a consumer, which is not the consumer to blame, you're thinking about the choices you can control. Let's go back to the old car with a lot of mechanical problems example, you see that the car manufacturers are starting to feel the sting of falling sales (and profits). Holding inventory is a huge loss, they would rather take a loss for a few thousand dollars than still holding that car in its entirety (inventory costs + the good is still not sold so you have no cash/accounts receivable to lessen the cost). With falling sales and high inventory costs, companies want to sell their inventory for a lower cost (thus why some closing stores have a "everything must go" sale -- it's expensive to keep the lights on a failing business). You as a consumer have the data and the news to explain that deflation is taking place and notice your desired car's price starting to lower a few hundreds or even thousands at a time. You can buy now or wait a little more to save a few extra dollars in a struggling economy. Of course, this is not to say every person thinks like this, such as yourself, but for the most part a good portion of people tend to and these people influence the economy even without intending to cause damage.
@@ucouldnevah Not looking at prices is a very... interesting... strategy to live life
The current economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
Just buy and invest in Gold or other reliable stock , the government has failed us and we cant keep living like this.
Yes, gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my adviser’s moment by moment changes in the market are lightening quick, cos who know how much losses I would’ve had by now.
I envy you, who is this investment adviser you work with, I’m intrigued and I could use some quality guidance
*Sharon Lynne Hart* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Go away bot.
i have seen a 50% increase in the cost of living over the past 2-3 years. It used to cost me $5k a month to get by, now it's more like 7-8K food almost costs double what it used to and no change in sight (Canada)
stop voting for liberals
Then move.
In 2-3 years you haven't changed the way you live at all?
@@aolson1111 a condom could have saved the world from this comment
@@aolson1111 To where?
The “virtuous cycle” primarily benefits debt-holders by eroding debt. Who are the biggest debt-holders? Governments and corporations.
Also, governments with a graduated tax structure (e.g., the U.S.) bring in more real tax revenue because the tax brackets aren’t appropriately indexed for inflation.
Hold on, most debt has interest rates greater than 2% which would completely erase this effect.
If someone offers to pay you back with less than 2% interest... who would make that deal? I'm gonna guess no one?
@@spaceprior You’d think that, but consider how artificially low the interest rates on U.S. bonds were up until very recently. They had interest rates less than 1% in 2020. For the U.S., foreign governments are big buyers of U.S. debt and have been even when the interest is less than the U.S. inflation rate. If the foreign country has an inflation rate higher than the U.S., it may make sense to invest in U.S. bonds even if the returns do not exceed the U.S. inflation rate.
@@spaceprior My bank took that deal. I have my mortgage set for 20 years against 1,4%
@@theaxer3751 That's extremely confusing. Is it subsidized?
What are the best strategies to protect my portfolio?, I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I thought about it, and I don't agree. "People buy stuff now because they fear that the price will increase." Well, there's some things that consumers can't put off buying like food and gas. People will buy regardless of the price, they might just use substitutes. Then there's stuff that People buy relatively infrequently like TVs and computers. The prices of TVs ans computers continues to decrease because of Moore's Law. Then there's the things that people really seldom by such as cars and household appliances. I feel that people buy this when they meet the intersection of needing to and having the money to do so. I've never had a perfectly good refrigerator and said, let me go out and get a new one because it will cost more in a year. Prices increasing year after year will always be the case. I'm not saying that inflation doesn't have to exist, but I'm saying that I don't believe that's the reason that inflation exists.
100% agree
That's one of the things inflation tend to influence. If you keep your money under your bed, you're not putting them into the economy, you're saving them for when you need them. Good for you, bad for the economy. With policies like this, you're more likely to spend those money in some form or the other, put them back in the economy and that keeps things going, it's not about you losing value of your money, is about you not keeping money and actually put them to use. Now this might mean you have to live paycheck to paycheck and are constantly in debt, but what's more important here, the life and well being of common people or the well being of multi billionaires and trillion dollar companies.
@AndiKola I don't think a lot of people put their money under the bed. Illegal immigrants and survivors of the great depression tend to as well as underbanked individuals. However, as long as your money is in a savings account it is contributing to the economy. Even if you are not personally reading the benefits. I personally keep my money in a HYSA and a 401k index fund, so I don't... I don't know I find the whole anti-saving theory to be confusing because I don't know what defines savings and what defines investing in this regard. 🤔
OMG I was looking for this comment! As someone who has always been in the working poor income bracket, I can guarantee you I don't buy like that. When prices are high, I delay buying - even if it's an important purchase. If push comes to shove and I absolutely can't put it off, I buy the cheapest option possible (which usually means thrift/used). Who are these people who go: "Wow everything's so expensive now....better go on a shopping spree!" 🙄
agree, that's a really weird assumption on which the cycle seems to heavily rely on
i think most people are like me who is a hospital bill away from bankruptcy, so i can't imagine how the cycle implies that the majority would minmax their purchases as though they have their morning coffee observing the inflation rates. the first thing that comes to mind where this sort of spending behavior is sane and expected is with GPUs -how the prices for them increased heavily due to demand from people using them to mine cryptocurrency
for most else i think more studies need to be made about how people spend their money. all this talk seems like it's the businessmen feeding the economists their qualitative data.
I feel like deflation is a fear of corporations. We definitely need to lower these out of control prices with a small deflation.
Yeah. As soon as they brought up deflation, they immediately jumped to the worst case deflationary spiral. There can be inflationary spirals (hyperinflation) too, so why the instant jump to the worst case scenario for deflation? They also didn't mention how much inflation benefits those with high debt.
@@andrewn7365it's much harder to control deflation, as they said. The economy isn't smth you just control with a lever.
@@spe3dy744 True. I'm just feeling that there's nuance missing from their explanation of deflation.
@@andrewn7365 because it's harder to control deflation
It's a really fear of governments... corporations are nothing more than the high-functioning part of government. From the old kings of Europe, corporations like the West India Company still are issued charters and treated as "individuals". It's a practice that wont look great 1000 years from now (IMHO)
What!?! When prices fall, people buy less, and when they increase, they buy more!?! What!?!
noboby i know has a wage that has kept up with inflation!
"If I haven't personally experienced it, it doesn't exist!!!"
@@aolson1111 you can just search for wage grownings and inflation rates, most wages really dont keep up with inflation
@@aolson1111No OP is right, even if he is citing anecdotal evidence. There are entire swaths of demographics that didn't see wages change at all, which this video did a bad job talking about. Generally if you were a middle income earner or higher OR you lived in a metro area, you saw your or your neighbor's wages climb in some way. However, rural residents and lower income earners hardly saw their wages change at all. These groups of people don't have much power or influence to change their wages even as prices go up around them. It's one of the main reasons homelessness is climbing and farmers/small towns are declaring bankruptcy.
I don't know what "keeping up" means for sure, but businesses are raising salaries to attract people, in my experience.
@@hewitc doesn't mean its equivalent to the massive amount of wage stagnation the west has seen for the past 30 years. Min wage would be near 25 to 30 $ if it kept up with productivity. the primary driver for labour
So you tell me the economy runs by encouraging people buy things they don’t actually need? Because if they really need it, they won’t wait for lower price tomorrow
Right? Not to mention, many buy less not because they are 'waiting' but because they actually have no money to spend. (!)
@@unshakablesoul no inflation is still best if everyone just buys thing they need at the right time, and assuming everyone has basic income for living
@@unshakablesoul this is late state capitalism
Yes my guy we buy more than food, water and fuel. Any other interesting discoveries?
Luxury goods are a distinct economy of their own.
Amazing video! I've been following your videos for a while now and have been making strides in the market for the past two years. I currently have over $320k in stocks, but my portfolio is down by 15%. Are there any short-term investment opportunities I can consider, especially with concerns about inflation and prices?
Reason I decided to work closely with brokerage-advisor ever since the market got really tensed and the pressure became so much. I should be retiring in 17months, so I've had an brokerage-advisor guide me through the chaos, it's been 9months and counting and I've made approx. 650K net from all of my holdings.
I'm glad i came across this comment, could you Please let me know who is the consultant that assist you and if you don't mind, how do I get in touch with them
Judith Lynn Staufer is my financial advisor. You can find all the necessary details by searching her name online. Initially, I was hesitant about letting someone else manage my finances, but I'm really glad I did.
Thanks for sharing. found her website instantly. After reviewing her credentials i reached out to her hope she get back to me
This is definitely a bot, and probably a scam
The 1% dont want to lose their money. So they increase their prices. Instead of taking a loss themselves.
Correct. That is Capitalism.
Inflation hurts the poor more than the rich
@@FarberBob678 Inflation hurts the poor *and benefits* the rich.
Economics proffessor I see.
@@John_Jack yeah, I guess so
You DID NOT explain the topic proposed in the thumbnail. Zero explanation of money volume vs demand, why government needs to print money etc etc. You just chose ONE of the reasons inflation is kept at a certain level, and disregarded the rest. Very poor coverage of the topic.
@Dan-Rather fair enough
We know printing can be issue, but government isn't only component of the economy.
If people are encouraged during inflation to spend more because of higher prices, you have to encouraged companies to do same thing with wages and not hoarding money, like billionaires do. Money have to circulate.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Svetlana Sarkisian Chowdhury is my advisor, You can easily look her up, she has years of financial market experience.
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Ah, yes, losing 2% of my purchasing power every year is great! /sarcasm
Gaining 2% & more given real wage rates is great!
It mean that ur life in 50 more years will be double spending
thats the trade off for growth and high employment levels. No free lunch. Also wages rise with inflation, so your purchasing power often stays the same or grows over time
That is why you are [[[supposed]]] to get a wage increase to match inflation every year, that is what the govt does for its employees ie soldiers, but then also your company should be doing performance reviews to pay you more for good work, and That is where you would get your Purchasing Power Parity that you afford: a vacation, or a better vacation, or a second vacation, wtc whatever it is you wish to spend money on. That is is supposed to be your reward for good work, but you should definitely be getting a raise every year to coincide w/ the allowed inflation to cover rent, food, utilities.
@@Hollywood041but it doesn’t happen when private institutions can get away with it
I love this and DCA everyday on what I'm overweight in. I used to do the auto deposit however I stopped when I couldn't guarantee at what time my deposit would go thru. I like to control the time I deposit and buy daily. Love your video. New subscriber here.
I invest everyday in a round of stocks always looking to DCA down. I increase my deposits monthly. I am never good at timing the market so long term and DCA mindset works for me. How do you go about yours?
@@Jaymilnere I do not invest on my own, I and a few Neighbors in Bel Air Area work with an advisor who prefers we DCA instead of a lump sum purchase, Following this, my portfolio grew 40% in the last quarter.
I do not invest on my own, I and a few Neighbors in Bel Air Area work with an advisor who prefers we DCA instead of a lump sum purchase, Following this, my portfolio grew 40% in the last quarter.
@@Jaymilnere I do not invest on my own, I and a few Neighbors in Bel Air Area work with an advisor who prefers we DCA instead of a lump sum purchase, Following this, my portfolio grew 40% in the last quarter.
@@Jaymilnere You're right, I and a few Neighbors in Bel Air Area work with such advisor who prefers we DCA instead of a lump sum purchase, Following this, my portfolio grew 40% in the last quarter.
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.
The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalizing on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
@@maryHenokNftI actually subscribed for a few training courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with *Gertrude Margaret Quinto* for the last five years or so, and her returns have been pretty much amazing.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
There needs to be an asterisk next to your title - "Why can't prices just stay the same? *in theory"
imagine in like 500 years an apple will cost 20€
This theory is the official dogma of all economic schools and governments.
I am working my way to become a consumer on the free market one day in the distant future. Perhaps, then those theories in the video would apply to me. Until then I am just surviving.
You folks do not know what inflation is. Prices never go down again. Prices may stabilize one day, and that's how inflation works around the world.
I haven’t seen a gas station selling gas for $2.00 nor have I seen a loaf of bread for $.75 …. You are right prices of most consumable items won’t go down
This is all theory. Companies and raking in cash and still laying off workers.
It used to be that all products were physical. I make corn, corn gone, corn bad, I make new corn.
Now a lot of product is digital, or intellectual. I make algorithm, it works, you copy/copy/copy and sell, I am doing nothing b/c there is no new algorithm needed, you fire me.
Unemployment in the US is getting lower though. It could also be that companies aren't economical feasible. Thats what happen to the gaming industry after the covid phase, because less people were inside and playing games.
Because they have to please investors, and just merely keep workers in. They "don't have money left" after pleasing investors and paying board of directors. Even if they do, they will invest in growth. Employees just have to no incentive to leave... That's how I see it at least.
@@BenterKoux unemployment is getting lower, yes it sure does when erasing people from the unmemployed list
The companies I know (smaller businesses) are not laying off people. They are having trouble getting employees even as they offer higher wages. Unemployment is historically low. People can get jobs and have choices. And many today don't really want to do any work that involves getting out of bed, dressing and leaving the home.
They managed to do an entire video about inflation without mentioning that it comes from the government expanding the money supply to pay for all the deficit spending....impressive.
This is exactly right. Liberals can't admit that because it would spell doom for large government spending programs. It's much easier to blame it on "greedy corporations".
Bingo!
Exactly
Inflation: zero
Market: saturated
Profit: unchanged
Companies: angry noises
No mention of the most important contributor to long term inflation: Money creation
When money can be created out of thin air whenever somebody takes out a loan, it devalues all existing money.
In the short term supply and demand impact prices, in the long term it is the devaluation of money which continues the unending increase in prices.
@terry9397 Thank you for being like the only person here who actually understands the main cause of inflation. We need to teach economics in high school because almost everyone commenting here obviously never studied economics or classical monetary theory.
Thats not how the accounting always works. Whenever you deposit cash at a bank, a matching deposit is created. In a simple model, this would double the money supply. No prices change however because everyone's networth remains the same, so everyone's purchasing power remains the same. You traded a cash asset for a deposit asset, and the bank recieved a cash asset for a deposit liability. Money doubled, but no networth created. There are ways to create money "out of thin air" which effect networth, but this disconnect means that money supply numbers are not reliable. To add to this, the type of money also matters. Reserves at the fed are a kind of money only used between banks and are not used for consumer goods. There's no reason to believe that increasing reserves at the fed would increase CPI prices.
This is wildly incorrect. "printing money" doesn't devalue currency. period. this is a capitalist myth. devaluing happens because of inflation. inflation happens because of Demand. money printing can CAUSE demand increase. which is where you get printing devalues currency. its not exactly as straight line as the statement implies. im not even talking MMT im talking literally just how money works.
@@harrisjm62 in a closed loop system, perhaps. But this is a global economy. It's not just a coincidence that literally every time government creates a bunch of money they a bunch of inflation. The causation could not be more clear.
I'm only a minute into this video, but I'm not gonna watch the rest of it if they don't mention the literal thing that causes inflation. I actually came to the comments to see if anyone was mentioning that, because if not, this whole video is literally useless. Other than a short term supply shock, these days inflation only comes from the printing press. It's no wonder we have such a bad policy when for some reason, the media does not want to acknowledge that the government is 100% the cause of inflation. I'm not surprised people have no idea.
So they want infinite growth on a finite planet.
Yes, finally. You get it. Just continuously make more even if there is no room/use for it.
Myopic view.
The universe is pretty big though
@@DemsWBut we don't have access to that
@@NautiliamSpaceships
Have you met the American Consumer? There’s no way they’re putting off purchases when there’s a sale. We’re totally addicted to stuff.
Ok so what about the wage issue..? Is that going to be a separate video cause this one kind of didn’t help explain anything lol
Wages are going up with inflation
@@JZTechEngineering as if 😂
@@thastayapongsak4422 you can check the data but they are
It’s hard to have it track inflation because it’s unpredictable and it is very difficult/impossible to reduce wages.
It’s also hard to retain workers if you increased suddenly increased wages for one year and then a decade of little increase
Tired of the "recession is coming!" threat. Recessive periods come along with equivalent market opportunities if you are well informed and equipped, I've seen folks amass wealth in the midst of economic turmoil and even pull it off easily in favorable conditions. Invariably, the collapse is getting somebody somewhere rich
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Prices can stay the same for a long time. A good example is Japan where the price of ramen has been the same since the early 90s until recently.
bUt ThAt iS bAd FoR eConOmY!!!!!!11111 How could people buy things when they know the price of things!?!? Its better when prices keep changing all the time so you never actually know the real worth of things!!! Next government and economists are gonna tell us that inch or centimeter needs to change every month too so the buildings they make is good for their economy!
@@vipu6821 I am actually so tired of GDP being the accepted measure of an economy and constant growth being the expected outcome. It's a lot harder to measure quality of life, but I would much rather have the success of an economy be measured by the kind of life that can be enjoyed by the poorest and the average of society.
this is because the cost of making ramen has decreased by around the same amount that the value of yen has decreased, mainly a coincidence. Actual inflation is only due to the central banks increasing the money supply, thereby taxing people's saving, the increase in all prices is only an consequence of this, but the main culprit is the government's greed (search "what happened in 1971?" on google if you want direct evidence)
Thank goodness you brought this up!
Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life.
Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!..
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
As a beginner I would recommend you get started with a professional broker that will guide you through the process and trade for you while you get the daily profit and rewards.
Do you mind sharing info on the adviser who
to
assisted you? I'm 39 now and would love
grow my portfolio and plan my retirement
SARAH JENNIE DAVIS
That's my licesed Financial advisor you can easily look her up, Thank me later!
"It's ok if prices rise, so long as wages rise, too."
Thats not true. It makes it impossible to safe money for a longer period of time, because it looses it's value.
Great point. We are at the stage now. Where are the only proper way to keep long-term savings is in the S&P. If your savings aren't in some thing that roughly keeps up with inflation at the very least, then, yeah, saving half your paycheque isn't gonna help you much 50 years later when that money is worth a fraction. Inflation means you can't just save money.
@@jasondashney isnt that the entire point tho? putting your money back into the economy where it can be productive instead of having it in a safe
@@ORCIproductions productive for what? Just so it can go up enough that it would be the same as if there was no inflation and you just put it under your mattress? It means you end up exactly the same, but with extra steps.
It's the issue with fiat currency, if you want an inflation hedge, buy up gold or some other durable asset. When it comes time to liquidate that asset, it wouldn't have depreciated over time.
REAL inflation is the increase of prices of assets that you are working hard to own, the house you want, the stocks you are analyzing, basically 'assets', that is still 15%.
If you want to see an example of a country that manage to be as close as posibble to 0% inflation/deflation, take a look at Japan before the covid pandemic, their economy basically stayed stagnant for the past 20-30 years since their 1980-90s bubble bursted
Deflation sounds pretty good, we need way more deflation.
What is comical to me now are the working couples who drive around in $65,000 pick up trucks and $55,000
SUV's, have designer everything, frequent luxury vacations, daily gambling, etc.,then complain to me about the price of eggs and milk.
Unbelievable.
Not only can prices stay the same, they can go down. They did this during the gold era and will do it again during the coming bitcoin era
So if there is always inflation, does that mean prices will always go up, slowly (preferably)? Does that mean that eventually we'll need thousand dollar bills? Does that seem ridiculous?
Now yes, maybe in 1000 years no
I mean isn’t that how Japan works as well? Even at the level of coins they have 500 yen and thousands of yen notes so how is that actually making everything affordable and keeping prices stable?
Its true we could just increase it like Japan but we could also just do a currency transfer if we care about keeping a low number. The gov just accepts the old USD and recycles it and only prints a new USD
Japan has stagflation or even deflation; sometimes, low interest rates from the Fed. Prices seem so low because they don't have much inflation, and purchasing power has lowered for the yen because of a drop in value compared to the dollar
It's not ridiculous, it's pretty normal. You used to be able to buy a soda for 5 cents many decades ago
A huge driver of inflation is currency devaluation. When the government prints more money to monetize its deficit spending, the supply of money in the system increases. This makes the dollar worth less, which then causes the things we buy to cost more dollars.
I just watched an 8 minute video on inflation and I did not hear them mention the government money supply once. Inflation is an expansion of the money supply by the government. It’s that simple.
Brainwash!!! Central banks are the worst thing ever!
it's not. Banks and corporations expand the money supply all the time through the same kind of accounting tricks as governments. Not all balance sheet expansions create networth or purchasing power. no additional purchasing power means no way for prices to increase. Furthermore, not all types of money the government puts out has to do with consumer goods. reserves at the fed are a kind of money only used between banks, as such they would have no affect on the consumer price index. Treasuries are another kind of money only used for finance and investing, not consumption, so we shouldn't see an effect on the CPI either.
All of those things you mentioned are priced in dollars. Consumer goods, treasuries, and the balance sheet at the fed. As the government prints more money and banks expand the amount of credit in circulation, there are more dollars chasing the same amount of goods. That is what makes the prices go up. Treasuries are nearly worthless in a inflationary economy because any gains you make from holding that bond for years get eliminated by the reduced spending power of the dollar
Thats not how it works at all. You need a textbook that's been updated since the 1950s and one that uses balance sheet accounting. The treasury prints very little cash. 2/3 of US dollars are actually created outside the US in foreign banks that have no account at the fed. This means 2/3 of USD have nothing to do with the US government at all. A Chinese company may get a USD loan from a Turkish bank to buy Iraqi oil. The Turkish bank doesn't need any dollar deposits to create the loan, it can simply accept the foreign exchange risk. The quantity theory of money doesn't work for a credit economy and there's no easy way to infer inflation from the money supply as there are too many different types of money and too many ways to create money which can't be easily aggregated.
@@Brunopeter222 I'll add a second comment. Banks don't necessarily expand credit when the treasury prints cash. The flow is often the reverse. Banks expand credit as "needed" and the Treasury only prints enough physical cash to help with keeping deposit account liquid. The Fed's balance sheet isn't "priced in dollars", you can't buy a balance sheet and there are foreign currencies/treasuries included on it. Treasuries are considered money, just as cash is. They're both different instruments, but have the same denomination. You're confusing money to be only the denomination part and that money can only be 1 instrument. As I mentioned before, more dollars doesn't mean they are chasing more goods. Various money instruments don't chase goods at all, and some that do are only put on balance sheets to help with liquidity not to chase goods. Some instruments, like loyalty rewards, only chase specific goods and yet no one considers these inflationary but it's a trillion dollar private industry.
One thing this video misses: innovation makes products cheaper which drives deflation. Look at the cost of a big screen TV today compared to 10 years ago, for example. Businesses are constantly trying to make products less expensive so that they are more competitive in the marketplace. The government has many ways that they prevent this not just interest rate. Regulations are another big tool. They regulate business which make certain products more expensive than they need to be. This is why politicians are so rich: they use regulations to pick the winners and losers in an economy so they can always invest in the winners. The result of this is things being more difficult for all of us.
Regardless of whether government chooses interest rates or regulations, the fact is that they deliberately make things more expensive knowing that wages will not keep up. Politicians do not care about us. They only care about themselves.
I think one of the most entertaining things a business owner can do is cut prices and watch their consumers flourish and the utter chaos of the other businesses in the sector.
Cutting price has many drawbacks. You cut down your margin, so your ability to grow the business, recruit, train, retain people, invest in tools etc... is getting even more limited.
Also, customers tends to associate price with value, so a lower price can mean a perceived lower value. You are basically changing who you are selling your product to, and this is a massive change for a business.
Finally, it won't take long for your competition to cut their price also down.
Soon, this is a race to the bottom, where each companies is spending their time / money / expertise not improving their product, but trying new and creative way of cutting down expenses and cost, so they can cut down the price.
Everything is more complicated than it seems.
Forgot about AI, now companies don't have to hire more to keep up with demand, they can cut employees, and increase prices with nothing to stop them, and that's mass layoffs with extreme inflation and unemployment on the rise... This is the state of 2024
Capitalism has mechanisms to prevent price gouging like competition (though that fails when patents or the likes prevent it), so where AI cuts jobs, it also cuts costs so the end consumer will pay less.
Wish should cause deflation (yup
What's stopping you from using AI in your own business?
@@DemsW Competition in modern capitalism is a joke. nearly the entirety of the usa meat packing industry is owned by 4 companies
It feels like this video left out some important details...
The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?
I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of five percent. Put money aside for the times when the market really starts to bounce back.
45% of Americans do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor.
Your adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same adviser and how I can get in touch with them?
She goes by ‘Carol Vivian Constable’’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.
According to the video, you the consumer have the power to stop inflation or cause deflation. Stop overspending. Refuse to buy things that are too high and you don't need. They try to scare you with threats that there will be less employment if you do that. If you cause deflation, less people will need to work to survive. A whole family surviving from one working wage is better than everyone trying to seek employment. You have the power. But I guess that may never happen since we no longer have the same type of family support structure as we did before. Almost everyone's family is broken these days.
Ah yes, the perfect solution to a systemic problem. Insist that the real issue is the individual choices of people in the system, and blame them for not choosing differently. We definitely aren't heavily influenced and shaped by our environment as human beings are we
As another commenter put it (17 upvotes), "They managed to do an entire video about inflation without mentioning that it comes from the government expanding the money supply to pay for all the deficit spending....impressive."
However: the government does have deficit spending primarily to help poor people. So, yes, if people individually acted in a way that helped poor people, then the government would not have to step in and create inflation.
"Not overspending" may not be enough to accomplish that. When people save money while buying things, like by going to Walmart and eating at home instead of at restaurants, what do they do with the money they save? Often, they put it towards other things that they want: such as better housing. This drives up prices for other people, with rich people who own lots of property being the main benefactors, and poor people who don't own their homes being the main victims. There is a solution, but it isn't obvious: and so, without something unexpected happening, people won't use it and inflation will continue, as well as global warming etc.
I don't think buying something when you need it and not when you think you're not gonna afford it later is a bad thing
Thank you for recommending Sarah Jennine Davis on one of your videos. I reached out to her and investing with her has been amazing.
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
Do you mind sharing info on the adviser who
assisted you? I'm 39 now and would love to
grow my portfolio and plan my retirement
@@valleygrayShe's Sarah Jennine Davis
+156
1759
Financial planning, akin to navigation, requires knowing your destination. James Clark's guidance provides clarity in uncertain markets.
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
Celebrating a $30k stock portfolio today from a $6k start. Investing wisely has given me time for family and future plans.
James Clark's market insights have consistently led to profitable decisions.
Does anyone have any recommendations for reputable financial advisors who specialize in investment planning? I'm looking to explore professional guidance in managing my finances effectively.
HOW CAN I REACH HIM ????
But if the prices were always the same deflation would never occur
Two percent is a lot higher inflation tax than we think. Think about it this way, NATO has a two percent target for their defense budget. And countries say it’s too expensive. Our American government is not efficient at all. Waste money everywhere, laws should expire in different amounts of time. All these laws that waste money should only last a couple years
What you call waste may be vital to another. Rethink how you perceive an entire nation.
Of course, the government needs to waste money. That's the point of the government.
@@Hollywood041 sending money to a foreign nation that dont care about us is a waste of money
Not really comparable, NATO asks 2% of GDP, GDP is very much huge, and is so much greater than the actual government's budget (usually around 15%). You are looking at this wrong.
@@chaptersword472 You'll be better if everyone is better. You benefit more from cooperation than competition
I’m pretty sure people will not hold off from buy a carton of milk half the price it was yesterday. Like no. People will hoard that stuff because they know prices will rise again. Necessities essentially have an infinite demand.
you can't hoard milk
@@tonypalmentera7752 That doesn't mean people won't try it.
Lol clearly you never learned about the Substitution Effect.
Example: people switch from expensive beef to cheaper pork, pork to cheaper chicken, and finally chicken to rat in a siege or apocalypse scenario.
@@vinnycordeiro they wouldn't, en masse...if you think they would, go back to school and take psychology and economics.
@@tonypalmentera7752 I lived in Brazil through their hyperinflation period, I may have first hand experience that economics books don't tell you because it isn't based in real life, but that's me.
I have absolutely no nostalgia of the time when my family had to rush to the market to make the monthly purchase of food when my dad got his payment because prices were raised every single day. In the worst periods prices would raise twice a day. So yeah, believe in what you will.
Great video. So what do we do?
News Alert! Inflation hasn't just started to affect us. People have been suffering greatly from inflation for almost a century, but notably after 1971. During the industrial revolution, prices of products and services were auctioned down to the point that consumers could literally buy them for as little as a penny thanks to a free market and sound money. All of the problems we have today are a result of government meddling.
It has never been easier to understand how to build your money than it is right now, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
I think it's great to use a portfolio advisor when investing. Before I met with a certified portfolio advisor during the pandemic crash in March 2020, I had recently started having terrible dreams. Finally, with the help of my advisor, I was able to increase my initial investment of $400k to over $2.8 million dollars.
Where may one locate a wise FA? Even while I like the idea of using their services, it's unfortunate that recent stock market catastrophes have started to happen more frequently.
Yes, ‘Jessica Lee Horst’ made headlines in 2020, but I'm not sure if I can bring her up in this context. She manages my portfolio and acts as a counselor for me.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
Come to Australia - we have 2 major grocery stores that have made record profits in the past 2 years not only in Australia, but the world. A country of 27~ million having 2 companies making the most amount of profit in the world. It also doesn’t help that these two companies also own most of the petrol stations and liquor stores. What about banks? There are 75~ banks in AUS and 95% of them are owned by the four biggest ones.
It's such a tough one, because I love the idea of capitalism and free markets, but they inevitably lead to consolidation. It's basically a law of nature at this point. How on earth do we keep the benefits of capitalism while stopping all of this consolidation?
@@jasondashney with partial government regulations (just not to much or it will become communism)
Inflation needs to be abolished, government and taxation too!
I kinda expect this video to answer what would happen if inflation change keeps happening. $1 right now isn't as valuable as $1 100 years ago. Does that make money less and less valuable? If it is, is that a problem? How to solve that problem so that we don't keep adding zero on our money just because inflation keeps happening? Because personally I don't want my $1 to be less valuable in the future than now
You just redenominate your currency
Any individual dollar can become less valuable but don't forget the rest of the money supply. Also its not like this is unique to the US. Do you look at the Yen and think "useless currency" or do you think "Oh, I can make 4.5 million yen per year, guess these prices make sense". Also you can always just do a currency transfer. 1000 USD for a new USD and the government will continue to accept old USD but will only print new USD and will recycle the old USD it receives to new USD. Its way better we have to do this kind of thing every couple of centuries than having to constantly worry about a deflationary spiral.
@@daviddavidson6278 I see, so that kind of thing to recycle a currency, e.g. decreasing it's zero does exist. I guess that solves my anxiety.
wages rise with inflation
@@grimaffiliations3671they used to, not anymore. Or you are lucky to get a one-off 20% rise after 3-4 years of inflation being above 5% (which is compounding, unlike the wage increase)
Why do I feel like these “inflation explanation” videos are mostly just the narrators trying to justify companies’ greed by using economy theories to gaslight the average person into thinking that the more expensive the things they buy the better?
Let me ask you a serious question, have companies ever not operated purely for profit? Is not the entire point of a company to make as much money as possible? And followingly, is this a bad thing?
Price stay the same actually, in Japan
We want deflation. But to have steady deflation we need to consistently incentivize spending. People must be encouraged to continue to spend, even as prices go down. So, they need more cash. This is where things like Universal Basic Income come in. We've just never done this before and it's scary. Technology is a deflationary thing. If we want things to improve, we must embrace sustainable deflationary systems.
UBI means printing more money which means inflation. It might be possible, but only if the government is *much* less wasteful than it currently is.
@@RT-. nope. wrong and wildly incorrect. it can be paid for with Social spending that's already in the budget for most countries. Canada's will actually DECREASE spending if we swapped to a negative income tax model. I've ran the numbers. its extremely feasible to set a bottom for the economy.
You incentivize people to spend by making good products that people think is worth giving away their hard earned money, inflation just creates the opposite incentive to make worse and worse products. You can see it now and last few years especially when companies just keep cutting and worsening their products while keeping or raising prices. If there was 0 inflation or mild deflation those companies would need to make good products so people want to actually buy them, also there would be less waste in general when people would not buy some useless trinkets and products would be more like many years ago when they were designed to last as long as possible and be good quality.
Deflation is a terrible idea, it kills investment, makes debt harder to pay and has led to decades long economic stagnation in Japan for example.
@@NearQuasar Sustained Deflation. leads to what your refering to. Deflation happens all the time with products. the issue is it doesn't happen on the economy as a whole at all. a little bit of deflation is actually a good thing every few years. but Capitalism will resist the Boom and Bust cycle it enforces. so never deflate ever because bahhhhhddd
i got an ad for this video on this video..
because owners & investors want to see the numbers go up.
The problem is that nobody cares, so nothing gets solved or done.
Debt keeps on debting, inflation keeps on inflating
We ALL care, we just mostly feel powerless to stop it b/c that requires struggle, like for real real struggle... like, physically taking the means of production away from corporations and them legally changing the circumstances afterward to make it Just.
This slaughterhouse no longer belongs to JBS, it is worker owned, let's say that fair compensation is covered by back owed wages, deal complete. Co-op now registered w/ the BBB.
if people actually cared then they should learn about bitcoin and how it can protect people's purchasing power against rising inflation
@@LiveFreeForLife you're way better off buying gold, crypto is not stable enough.
@@stt.9433 if you study enough about Gold and Bitcoin, you'll learn that gold is the worst performing asset compared to stocks, S&P500 and you'll learn that Bitcoin is the best performing asset in the last decade and huge companies and banks are stacking Bitcoin. Learn, research it now
@@stt.9433 Dont you think it would be bit weird if the price of BTC was stable and still gained all the gains it had? You pay the price of gains in volatility, nothing can go up so much and be stable, the stability will come later when its much bigger and when media isnt full of misinformation and the space isnt full of scammers trying to sell their dog, cat, trump and elon coins. Also gold havent kept up with inflation for at least 40 years so I would say you dont gain anything going from dollar to gold when both lose value against inflation.
I just got an ad for this exact video after it finished ??
My country
Inflation: 10%+
Pay rise :3%+
they cant stay the same cause greedy employees keep demanding more yachts.
As an economist, I'd like to point out flaws with such reports/strategies.
1) If prices rise and wages rise too, we end up spending more money to buy the same goods which is currency devaluation.
2) People plan for their long term purchases despite inflation. If you were to buy a car, you will not coz prices will rise later but coz you need it to move around.
3) Inflation is very good for firm profitability and dividend payouts since the shareholders spend the money before it's devaluation trickles down to the economy.
4) Interest rate hikes like the West did bring down inflation but cause recessionary pressures to the economy.
5) Credit allocation like the East Asians did bring down inflation while still spurring economic expansion via GDP expenditures rather than speculative ones such as cryptos, stocks, etc.
Americans need to budget their money better. No matter how high prices go up, people will still pay. Have better self control when spending.
Overall they pretty much did under the gold standard. They fluctuated but generally remained the same average over the long term. Fiat is a disease costing us greatly.
The gold standard just experienced the same problems they laid out. No control over money supply means deflationary spirals. How is fiat the problem when the gold standard experiences these problems?
@@daviddavidson6278 Gold standard self regulates, no need to 'control' the money supply. You're a Keynesian fiat thinker, your frame of thinking is all distorted like a fish that doesn't know it's in water.
@@michael2275 gold standard doesn’t self regulate, what’s the difference between a GS system where the amount of gold doubles and a USD system where the amount of USD doubles.
@@daviddavidson6278 Gold consistently has had 1-3% inflation through history naturally regulated by geology and advancement of technology. Also, if more gold is found the spending power goes to the miner who has costs so must sell not a government that monetizes it's debt money into existence by the central bank at will and inevitably abuses it causing huge inequality like now. You're totally a fish that can't see the water lol.
"Inflation is good" but also having inflation-indexed wages is bad because that just drives up cost or something. So the whole system relies on workers being paid less and less while expecting them to spend more and more. And then we have the shrinkflation and everything on top of that because if the prices would keep creeping up a few percent a year people would lose their minds...
Wages are going up faster then inflation
Wages have outpaced inflation for decades, now.
Deflation BAY-BEEEE!!! BRING..IT..ON!! As a average worker...the best you waht is deflation. ALWAYS!!! Not the inflation.
2% is our 10 day inflation in Turkey 😢
I use the lira in my tires.
Still, 2% inflation is incredibly high over just a decade.
@@MBarberfan4life10-day, not 10-year.
Be thankful you are not Argentina ? ??
So by the logic that these economists are talking about, thats even better because it gives people even bigger reason to spend right? RIGHT?! Why wait people to spend their money every few months when you can make them spend every week! Inflation is so good we all love it yes give it to us!
I wasn't taught any of this in school. That deflation chart doesn't make any logical sense to me. I'm also curious about why going below 0% is a challenge. I'm uninformed about economics
It is possible to go below zero. Japan, Switzerland, Sweden, Danemark and the Euro zone all did it. This is missing from the video, but the mechanism is the same, lowering interest rate encourage spending.
its a challenge because governments being net debtors have an interest in stealing from you, so they spend more than they tax which means there's an ever increasing amount of currency in circulation
@@elijahschnake3863thats not how thst works, if the us spent 9000000099t dollars tommorow they would have to borrow it as the fed doesn't just give them money
@@elijahschnake3863thst not how the gov works
@@JZTechEngineeringin an ideal setting maybe. in a setting where most governments run massive debts which they want to inflate away, that is absolutely correct.
I don't think we spend enough time talking about the extraordinary profiteering on the part of some very large corporations the last few years. We also need more tools for the federal government to control prices, like a windfall profits tax.
Opt out. Study Bitcoin.
🙏
Not a single word about money printing, by far the main cause? If the whole system is 1 coin = 1 apple, and you print 1 more coin, it becomes 2 coins = 1 apple. Suddenly, your coin is worth 50% and the other 50% goes to the one who printed it. At the moment when governments spend the freshly printed money, it’s still worth the same; inflation happens when the system absorbs it and adjusts to more money for the same number of goods, some time later. Thus, inflation is taxation without legislation.