Well I apologize, I haven't seen your other vids and only have a basic understanding of the economy. Only recently started to look more at what's going on. (I'm actually 15) So your word is probably better than mine.
@MrFoofy no prob, sorry if I got harsh, trust me I've met PhD economists who make the same arguments... economics is heavily subject to confirmation bias, and there is no bias greater than hoping for easy answers. If you'd like to learn more I'd heavily recommend checking out my intro to economists playlist.
Inflation actually can ease the burden of debt. If you pay a fixed mortgage of $1000 a month, and the inflation rate is 5% with you wages keeping up, it gradually gets easier to pay your debt off. In deflation, it's the opposite. If deflation rate is 5% and your wages shrink as such, paying the fixed mortgage gradually takes a bigger chunk out of your wallet each time you pay the mortgage. Which would you prefer?
@MrFoofy yes, debts are increased in deflation, but incomes are destroyed in inflation. Neither inflation or deflation is a good thing, they are economic responses to economic phenomena and preventing them to monetary policy is ignoring the real economic event underlying that the trend is a response too.
@AlexMerced I still think deflation wouldn't be helping at the moment. I think part of the reason for inflation is so we can inspire people to buy from us. With a weak dollar, other countries with stronger currencies can purchase our stuf for cheaper. It can really depend on if you want to do importing or exporting. Exporting is helped by a weak dollar. If you want to import you would prefer a strong dollar then, because then you can buy for cheaper. Could be wrong.
@MrFoofy OMG, I'vve done so many videos onw hy devaluing currency to increase exports is a horrible idea. Sure, people buy stuff but then companies realize when they replace their inventories they can't because prices have gone up, if people want to export they accomplish the same thing by lowering their own prices instead of devaluing which affects businesses that don't need it, reducing their margins possibly causing viable businesses to become unviable.
@MrFoofy on top of it, once they buy stuff with the devalued dollar, the value of the dollar just get pushed back up plus you increase domestic inflation as more dollars float domestically when right now running a trade deficit is the only thing keeping all our money printing from causing rapid inflation domestically cause we shipping dollars overseas.
@MrFoofy read deflation and liberty by Jorg Guide Hulsman, he makes one pretty good case in defense of deflation. My thing is they both suck, they transfer wealth, inflation is just preferred by asset and debt holders looking to protect their wealth, while deflation rewards pursuing income instead of growth. Investment doesnt end, it just shifts focus to income in deflation.
Deflation is not a good thing. When people realize prices are going down, they put off spending to wait for it to bottom out. No one wants to buy something today if it's cheaper tomorrow. This slows economic activity and causes prices to plummet to try and inspire people to spend. At the same time, salaries and wages shrink, but any debt a person may be in won't. It is really difficult to recover quickly from a deflationary period. The Fed creates inflation to prevent it from happening.
@MrFoofy tha'ts a generalization, people don't put off many things like buying food and entertainment, if there's a movie I really want or my favorite band is in town I'm not gonna be like "well I'll wait till prices go down next year". Deflation of prices will delay many investments like purchasing homes or stock, but homeowners can juse instead rent their properties and collect cash which is increasing in value.
FAR better than mine.
MrFoofy 2 weeks ago
Well I apologize, I haven't seen your other vids and only have a basic understanding of the economy. Only recently started to look more at what's going on. (I'm actually 15) So your word is probably better than mine.
MrFoofy 2 weeks ago
@MrFoofy no prob, sorry if I got harsh, trust me I've met PhD economists who make the same arguments... economics is heavily subject to confirmation bias, and there is no bias greater than hoping for easy answers. If you'd like to learn more I'd heavily recommend checking out my intro to economists playlist.
AlexMerced 2 weeks ago
@MrFoofy the quick way to get there is by going to LearnEconomicsNow doot Coom
AlexMerced 2 weeks ago
@MrFoofy also a quick way to do it is go to my channel and search inflation and you'll find 100s of videos on the subject
AlexMerced 2 weeks ago
Inflation actually can ease the burden of debt. If you pay a fixed mortgage of $1000 a month, and the inflation rate is 5% with you wages keeping up, it gradually gets easier to pay your debt off. In deflation, it's the opposite. If deflation rate is 5% and your wages shrink as such, paying the fixed mortgage gradually takes a bigger chunk out of your wallet each time you pay the mortgage. Which would you prefer?
MrFoofy 3 weeks ago
@MrFoofy yes, debts are increased in deflation, but incomes are destroyed in inflation. Neither inflation or deflation is a good thing, they are economic responses to economic phenomena and preventing them to monetary policy is ignoring the real economic event underlying that the trend is a response too.
AlexMerced 3 weeks ago
@AlexMerced I still think deflation wouldn't be helping at the moment. I think part of the reason for inflation is so we can inspire people to buy from us. With a weak dollar, other countries with stronger currencies can purchase our stuf for cheaper. It can really depend on if you want to do importing or exporting. Exporting is helped by a weak dollar. If you want to import you would prefer a strong dollar then, because then you can buy for cheaper. Could be wrong.
MrFoofy 2 weeks ago
@MrFoofy OMG, I'vve done so many videos onw hy devaluing currency to increase exports is a horrible idea. Sure, people buy stuff but then companies realize when they replace their inventories they can't because prices have gone up, if people want to export they accomplish the same thing by lowering their own prices instead of devaluing which affects businesses that don't need it, reducing their margins possibly causing viable businesses to become unviable.
AlexMerced 2 weeks ago
@MrFoofy on top of it, once they buy stuff with the devalued dollar, the value of the dollar just get pushed back up plus you increase domestic inflation as more dollars float domestically when right now running a trade deficit is the only thing keeping all our money printing from causing rapid inflation domestically cause we shipping dollars overseas.
AlexMerced 2 weeks ago
@MrFoofy read deflation and liberty by Jorg Guide Hulsman, he makes one pretty good case in defense of deflation. My thing is they both suck, they transfer wealth, inflation is just preferred by asset and debt holders looking to protect their wealth, while deflation rewards pursuing income instead of growth. Investment doesnt end, it just shifts focus to income in deflation.
AlexMerced 3 weeks ago
Deflation is not a good thing. When people realize prices are going down, they put off spending to wait for it to bottom out. No one wants to buy something today if it's cheaper tomorrow. This slows economic activity and causes prices to plummet to try and inspire people to spend. At the same time, salaries and wages shrink, but any debt a person may be in won't. It is really difficult to recover quickly from a deflationary period. The Fed creates inflation to prevent it from happening.
MrFoofy 3 weeks ago
@MrFoofy tha'ts a generalization, people don't put off many things like buying food and entertainment, if there's a movie I really want or my favorite band is in town I'm not gonna be like "well I'll wait till prices go down next year". Deflation of prices will delay many investments like purchasing homes or stock, but homeowners can juse instead rent their properties and collect cash which is increasing in value.
AlexMerced 3 weeks ago
They might feel richer, but WON'T be!
ScorpiusIncorruptus 7 months ago
Inflation is the increase in the amount of money, in consequence of that we must have more money per unit of goods.
Deflation is a decrease in the amount of money, in consequence of that we must have less money to buy goods.
Quantity of goods is constantly increasing, from this cause should be a constant deflation in the stock market.
kadarstaf 8 months ago
it was really useful to me .thanks a lot.......
camiltonj 1 year ago
The fleeting silence and face at 3.06 sums up the whole damn thing.
alzico 1 year ago
Good video.
19TEC85 1 year ago