this post was submitted on 20 May 2024
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[–] cybersandwich@lemmy.world 9 points 5 months ago

It'd really be great if journalists even attempted "educating" readers or providing meaningful context. But then again, would it get this kind of traction?

The interesting story here is that interest rates are raised to SLOW spending and encourage saving. The interest rates spiked to CURB inflation. It has worked, despite most journalists seeming keenness for it not to, for the most part. If consumers and businesses reduce their spending due to higher costs of borrowing, this will bring down prices over time, aligning with the Fed's inflation targets.

No one explains this to the average person, ever. Ironically, the story here should be consumers are spending money even when saving it should be incentivized because they can't afford not to... because of profiteering by large companies, grocery chains, etc as well as stagnate wages for the past few decades. This means that inflation will creep up faster than it should because of demand-driven inflation. This makes the problem worse for low-income earners.

It seems to me that THAT type of inflation might require less of an "interest rate adjustment fix", and more of a wage adjustment fix. Even potentially a regulatory fix to go after price gougers.

[–] Zerlyna@lemmy.world 8 points 5 months ago
[–] Xeroxchasechase@lemmy.world 7 points 5 months ago (1 children)
[–] whoisearth@lemmy.ca 10 points 5 months ago (1 children)

Between this and stock indexes you have the most asinine metrics to determine if an economy is healthy.

I'm not saying I know what the solution is, but basing good times on how well Microsoft and/or Warren Buffett are doing is just stupid.

[–] fukurthumz420@lemmy.world 5 points 5 months ago (4 children)

I’m not saying I know what the solution is

it's bombs

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[–] Pixlbabble@lemmy.world 5 points 5 months ago (1 children)

And that's while already having a trillion in credit card debt.

[–] Blackmist 11 points 5 months ago (1 children)

The wonderful thing about debt is, if you have enough of it, it suddenly becomes somebody else's problem.

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[–] 3volver@lemmy.world 5 points 5 months ago (15 children)

We're in late stage capitalism. Getting rid of the gold standard was one of the biggest mistakes in US history.

[–] buddascrayon@lemmy.world 12 points 5 months ago (11 children)

I find people who make this "argument" very silly. The gold standard is unsustainable. The amount of cash in circulation will always outstrip the amount of gold in whatever vault it been tied to. Fiat money is always an economic inevitability for a growing state.

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[–] just_another_person@lemmy.world 5 points 5 months ago

Bootstraps are too expensive to buy because your daddy thinks his broken ass house should be worth a cool mil.

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