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PaperclipPerfector  4d ago (text post)   2536 thread views

Small-Scale Question Sunday for September 15, 2024

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

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I have to admit I strongly disagree on the basics of inflation, then. It is agreed that the price of any good is dependent on supply and demand. Inflation, being about the increase in price of everything, necessarily needs to be dependent on both supply and demand as well. Constraining the supply of everything will straightforwardly lead to a price increase of everything.

There are some examples in which ignoring substitutions entirely would be foolish, yes. But imo the CPI goes too far in the other direction.

No, no, we agree on the basics. It’s just not what I’m used to.

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