Inflation in america?

Discussion in 'General Discussion' started by Coolguy, Jun 27, 2007.

  1. Coolguy

    Coolguy Well-Known Member

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    Is america going thru inflation? I noticed a couple months ago and this is an example from new york. Houses were being sold for 700,000. The prices kept going up. Now the same kind of house that would be sold for 700,000 a couple months ago, is sold for at least 750,000. Back in 1990's they were sold for 200,000's. Its not only that. Prices of products like milk are going up and up. If you think about it the value of the dollar is really decreasing now. A couple of years ago, A euro was equal to 80 cents. Now a euro is equal to a dollar and 60 cents. And thats a couple of years. Yea, how could anyone think that out of the countries, US is the one going thru it. But its because the United States was doing so well. Just like the great depresion. Before it, it was like a magical time.
    Increases in government taxes and fees can lead to inflation (especially when businesses are taxed). When the cost of business goes up, product prices go up. When prices go up your income effectively goes down. Then you have to work harder or find a better job. Or hope that your employer will give you a raise.
    If mad-cow disease causes cattle ranchers to destroy large portions of their herds and there is less beef on the market, the price of beef will go up. If interest rates go up, inflation can also result. If it costs more to borrow money, the cost of doing business has gone up and so will product and service prices.For the last 10 years inflation has been relatively low. It is my uneducated opinion that inflation has been minimal because people have relied on the stock market boom of the 90s to supply extra cash. Also many people have taken on additional debt rather than curtail their spending. But people can only stand so much debt. Once you are maxed out on your ability to pay (you may never max out your credit limit as long as you keep paying on time), you will either have to reduce your lifestyle, beg for a raise or find a higher paying job.


    Once the majority of middle-class America is saturated with debt, inflation will begin to rise or the economy will stagnate for years until some of the debt is paid down or people's homes appreciate so that they can borrow more money against them
     
  2. pHaNTaZtiK.

    pHaNTaZtiK. Well-Known Member

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    A key fact for the current human civilization.
     
  3. ferret

    ferret Well-Known Member

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    Congress certainly doesn't help matters along. Every election, "we're cutting taxes, we're lowering the debt, etc. etc. etc." and what do they do? Vote in an annual budget of which maybe 25% of the money allotted is actually needed. But hey, what's 500 million a year here and 2.5 billion there? It's not like that's going to hurt anything...
     
  4. blahablaheek

    blahablaheek Well-Known Member

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    There is ALWAYS inflation, and there always will be inflation.

    50 years ago, perfect example. Dads would work, there would be stay-at-home moms, and they'd have a bunch of kids, and guess what? They'd have a nice house that they own, a new car, etc. Now what? There are hardly ANY stay-at-home moms, and its always hard for families (at least the families I know, unless they're rich and make like $70k/year).
     
  5. azn_rebel99

    azn_rebel99 Well-Known Member

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    mmmm... well. I dont think things are getting more appreciating but the US currency is depreciating.
     
  6. Zohair

    Zohair Formerly zohBOT

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    Agreed.
     
  7. Moch+

    Moch+ Well-Known Member

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    You can't seriously tell me you think the downfall of the American family is the working woman?
     
  8. khodium

    khodium Well-Known Member

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    now how the hell did you come to that conclusion from what he said.
    He was using that as an example of inflation, the "fact" that both parents have to work to get the same 'quality of life' they had back in the 50's
     
  9. theloserboy

    theloserboy Member

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    Interesting topic. To be honest, I've never really thought about inflation here in America. But as the people before me have said, theres always inflation. One company/ economic market raises their price to make a little extra money, then the others do the same because they see that their competitors are making more money. Eventually everything has a higher price because they need to keep up with the prices.

    But now, its like prices are going up, and wages are going down. Theres only so much that you can stretch before you break the string.
     
  10. Reptar

    Reptar Well-Known Member

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    Where I live there are plenty of stay at home moms. And I don't think 70k a year is rich at all thats middle class.

    Anyways inflation is actually somewhat undercontrol compared to what it had been like a few years ago.
     
  11. xlink

    xlink GR's Tech Enthusiast

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    an increase in realestate values does not necessarily indicate inflation.

    while realestate went up around 300%-500%(500% where i live) consumer goods have not

    Merged Post:


    asside from the fact that inflation hurts companies as well since the money they have saved up is now d------ued.
     
  12. Coolguy

    Coolguy Well-Known Member

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    You are terribly wrong there. Its no where near under control. The government is trying to hide it. Prices of real estate tell it all.

    Another thing. If this does happen, most of the middle class people will become poor, and the rich, will become richer. So the now theres even more poor, and less jobs since small businesses fell apart. They have no job, no money, no food. What happens, a civil war. They steal from everyone else. They need food. But im pretty sure that wont happen because the government will try to stop it.

    By 2008 elections, when the new president is chosen, i bet all the money i have now, it will be A LOT more visible that there will be a huge inflation, probably worse than 1970. 1990's were at its peak, so now, it all has to come down
     
  13. Gold Smith 1

    Gold Smith 1 Well-Known Member

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    Yea I see it more and more as i live in an upper class town too...
    Like its weird now how houses can reach up to 20 million where i live... that wasnt even imaginable 10 years ago.
     
  14. xlink

    xlink GR's Tech Enthusiast

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    the price of a pack of gum tells it all

    1990 -25cents
    2007 -30cents

    a 2-for-5 shirt tells it all
    1990 -$2.50
    2007 -$2.50

    BIG f'ing WOW... 0-30% over 17 years.

    that's not even a 1.5% increase in price/year.


    realestate is also a poor indicator since it was in slump from the 80s-early 2000s and after adjustment for inflation is lower.

    here and now, America has hardly suffered from inflation.

    in 5 year's we'll likely be ------ed because there is a fair deal of latent inflation apparently. Compared to Europe, most goods in America are around 10-40% cheaper. Though that could just be a side effect of a stronger economy.... ehh..
     
  15. Lt. Crumpet

    Lt. Crumpet Well-Known Member

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    completely wrong logic there.

    look at the price of computers! back in the 90's they went for thousands of dollars. now you can get a PC thats 17000 times more powerfull for $400. according to your logic, inflation has gone DOWN!
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    .
    comparing individual items is useless. you have to look at the economy as a whole.
     

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