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Business, Economics, and Taxes: Capitalism. Yay? >=(

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Infinite growth, always demanded.

Netflix is going to raise prices again. After imposing get password crackdown. Next up- they’ll ensure you can’t cancel without a penalty or impose full year contract
 
Netflix can't push too hard. They just don't have enough of value to play hard ball. I barely watch anything on them anymore.
 
RaceBoarder said:
I need the Econ 101 explanation here:

So because everyone is working, there is too much cash being put into the economy currently (people needing to spend all their paycheck instead of saving), causing inflation? So the fix is to restrict the inflow of cash (via fewer jobs paying out)?
Click to expand...

Plus, more people working = faster wage growth, which also contributes to inflation. That said, none of it, absolutely none of it, comes close to contributing to inflation more than corporate greed (raising prices way faster than necessary) which the media gladly plays along with by not pointing out that obvious fact. I think I read somewhere (NPR maybe?) that 60% of inflation was driven by corporations pushing for higher profit margins by raising prices.
 
I guess I don't understand how corporate greed = inflation here.

Yes, when going to the grocery store, a dollar has less value. But that is because several corporations are working together to fix prices. But I'm not understanding how that decreases the value of a dollar when referencing banking and the market (as a whole).

I guess I view those things as two separate, independent entities.
 
Inflation is the rate of rise of prices of goods and services over a given period of time, right? If a corporation is raising its prices, that’s about as direct of a link to inflation as anything, right? Instead of raising the price on a good from $0.99 to $1.99 over the course of a year, the corporation raises it from $0.99 to $2.99, the extra dollar cost of that good means higher inflation over the course of the year. I’m not an economist myself, and I’m simply repeating what some economists are saying, but I know that corporate greed, in the form of raising prices only for increased profits, is not a separate entity from inflation. They are very much linked.
 
RaceBoarder said:
I guess I don't understand how corporate greed = inflation here.

Yes, when going to the grocery store, a dollar has less value. But that is because several corporations are working together to fix prices. But I'm not understanding how that decreases the value of a dollar when referencing banking and the market (as a whole).

I guess I view those things as two separate, independent entities.
Click to expand...

Prices aren't rising at the same pace as the cost to produce products does and wages aren't rising to match.
 
RaceBoarder said:
I guess I don't understand how corporate greed = inflation here.

Yes, when going to the grocery store, a dollar has less value. But that is because several corporations are working together to fix prices. But I'm not understanding how that decreases the value of a dollar when referencing banking and the market (as a whole).

I guess I view those things as two separate, independent entities.
Click to expand...
Have to trace where the extra money actually goes. Of that 5% increase, if 1% is material, 1% is wage, and the rest is profit, then it’s corporate greed fueling inflation.

And since we see inflation outpace wages, with no real change in supply of stuff, yea. The whole thing about covid money infusion ran out already, even though a lot of that money is still circulating.


And some industries manipulate the supply to manipulate their costs. Like oil.
 
Anecdotally, it sure seems like white collar layoffs are picking up.

because I’m unemployed, I took my nephew to the bakery down the street today and ran into someone I know. She just lost her job- as did her mother and her boyfriends mom all in the last few weeks
 
RaceBoarder said:
I need the Econ 101 explanation here:

So because everyone is working, there is too much cash being put into the economy currently (people needing to spend all their paycheck instead of saving), causing inflation? So the fix is to restrict the inflow of cash (via fewer jobs paying out)?
Click to expand...

The primary goal of raising interest rates is to tighten the money supply by making borrowing more expensive for everyone. More people working means more people have steady income. More people with steady income means people can spend more and are more likely to be approved for consumer loans (mortgages, home improvement loans, auto loans, etc). Cheap business loans encourage corporations to take on debt to finance expansion, modernization, competitor acquisitions, and stock buybacks. Cheap loans also encourage rampant real estate speculation and encourage riskier/poorer decisions by major investors who can afford to cover those losses if interest rates are low.
 
RaceBoarder said:
I need the Econ 101 explanation here:

So because everyone is working, there is too much cash being put into the economy currently (people needing to spend all their paycheck instead of saving), causing inflation? So the fix is to restrict the inflow of cash (via fewer jobs paying out)?
Click to expand...

Ummm..........yes?

Nothing cures inflation like a good recession.
 
Yeah open a bag of chips or pretzels...you get maybe 2/3rds what you used to and the price is either the same or more. Serving sizes change for the worse as well.
 
FadeToBlack&Gold said:
The primary goal of raising interest rates is to tighten the money supply by making borrowing more expensive for everyone. More people working means more people have steady income. More people with steady income means people can spend more and are more likely to be approved for consumer loans (mortgages, home improvement loans, auto loans, etc). Cheap business loans encourage corporations to take on debt to finance expansion, modernization, competitor acquisitions, and stock buybacks. Cheap loans also encourage rampant real estate speculation and encourage riskier/poorer decisions by major investors who can afford to cover those losses if interest rates are low.
Click to expand...

thank you.

This covers the business/market side of things that I was missing.
 
Deutsche Gopher Fan said:
TIL that many Canadian mortgages are only good for 5 years and then renew

holy crap that’s gonna kill a lot of already strapped people if it’s widespread
Click to expand...

Wait, what?

I thought I heard they had 60 year and 75 year mortgages to lower the monthly payment, but didn't know about the renew part.

Uffda, that's gonna hurt.
 
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