The Feds: DON'T Blame Us For Inflation
Published: 2024-05-18
Status:
Available
|
Analyzed
Published: 2024-05-18
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Inflation will only decrease to 2% if consumer demand weakens, meaning people buy fewer goods.
"in order for inflation to come down to 2% demand will have to weaken meaning people have to buy less things"
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Inflation will cool down when consumers collectively refuse to pay higher prices, demonstrating they no longer have pricing power.
"in order for inflation to come down quote customers are going to have to teach people that they don't have pricing power me meaning you're going to have to go into Chipotle say I don't have any money for extra guac and then walk out and when enough Americans no longer have enough money to pay for the extra guac that's when inflation will cool down"
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The initial cause of the current inflation was the money printing that occurred in 2020 and 2021.
"the trigger of the inflation was the money printing that happened in 2020 and 2021"
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Approximately $5 trillion was printed and injected into the economy between 2020 and early 2022.
"trillions of drawers printed about 5 trillion dollar were printed between 2020 and the early part of 2022 and injected into our economy"
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An increase in the money supply leads to a decrease in the value of each dollar, causing prices to rise.
"the value of each individual dollar goes down causing the price of things to go up"
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The purchasing power of $100 in 2019 was greater than today's $100 due to the decline in the dollar's value.
"$100 in 2019 had a lot more buying power than $100 today because the value of the $100 went down"
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Corporate greed is a constant factor and not a new development that began in 2020; companies have always aimed to maximize profits.
"corporations have always been greedy they didn't start being greedy in 2020 they're always trying to Maximize their profits"
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The ultimate cause of the current economic issues traces back to the initial money printing.
"the trigger ultimately goes back to the money printing that happened in the first place"
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The injection of printed money into the economy led to an oversupply of dollars.
"the money printing was injected into the economy it flooded our system with more dollars"
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An increase in the money supply diminishes the value of each dollar, leading to price increases for all goods and services.
"the value of each individual dollar goes down the price of everything goes up"
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The value of the US dollar has been declining as a consequence of ongoing inflation.
"the value of the dollar has been falling ever since inflation has been a problem"
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The Federal Reserve has maintained a target inflation rate of 2% for many decades.
"the Federal Reserve Bank has been aiming for a 2% inflation Target for decades"
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Inflation disproportionately benefits those who are financially literate and educated.
"inflation benefits the financial the educated"
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Inflation is defined as an increase in the monetary supply, meaning more dollars are circulating in the economy.
"inflation comes from the word inflate which means you're inflating the monetary Supply you're increasing the amount of dollars out there"
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Inflation negatively impacts consumption by forcing individuals to spend more on everyday items like food from fast-food restaurants.
"inflation hurts consumption because that means you have to spend more money at Chipotle it means you have to spend more money at McDonald's"
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Inflation causes the dollar's value to decrease, requiring more money to purchase goods and services.
"inflation means that the value of dollar drops and you need more money to buy things"
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Inflation widens the wealth gap, a trend that has been occurring for decades, not just since 2020.
"inflation disproportionately benefits certain people you've probably heard of this growing wealth Gap The Divide between the rich and the poor that didn't start in 2020 that's been going on for decades"
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While inflation increases costs for everyone, it disproportionately burdens the middle and lower classes, as the wealthy own assets that appreciate with inflation.
"inflation means that everybody has to pay more money to buy things but it disproportionately affects the average person the middle class and the poor because the wealthy understand money and what do they do they don't just rely on their salary they own assets they own Investments and these Investments when you have inflation grow in value"
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Individuals are becoming poorer if their salary growth does not match inflation, and are not getting wealthier if their salary merely keeps pace with inflation.
"if your salary isn't growing enough to keep up with inflation you're getting poorer if your salary is growing just enough to keep up the inflation you're not getting any wealthier even though you're getting a raise you have to be growing your income at least as fast as inflation"
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The actual inflation experienced by individuals is often higher than the officially reported inflation figures.
"real inflation not reported inflation because many times the real inflation that the average person feels is a lot higher than the reported inflation"
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In 1971, the US dollar was removed from the gold standard, transitioning it into a fiat currency.
"in 1971 the dollar was taken off of the gold standard and our dollar became just a piece of paper"
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The detachment from the gold standard granted the government and the Federal Reserve the authority to increase the money supply.
"it gave the government with the better receiver Bank the ability to print more money"
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The Federal Reserve's ability to print unlimited money theoretically allows the government to spend an unlimited amount.
"if the Federal Reserve Bank can print an unlimited amount of money that means the government can spend essentially an unlimited amount of money"
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Interest rates were significantly raised in the early 1980s as a measure to combat inflation.
"in order to bring inflation down interest rates went very high back in the early 1980s"
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The Federal Reserve had to reverse the effects of monetary stimulus, money printing, and inflation from the 1970s.
"the Federal Reserve Bank had to undo all the stimulus all the money printing all the inflation that they created in the 1970s"
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The Federal Reserve is currently attempting to counteract the inflation generated in the years 2020-2022, which has been experienced from 2022 to 2024.
"the Federal Reserve Bank is working to undo all the inflation that was created in 2020 2021 2022 that we felt in 2022 2023 and 2024"
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The fundamental origin of inflation lies in the act of printing money.
"the root cause of inflation comes from the money printing in the first place"
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Without the preceding money printing, the ability to increase prices would not exist.
"if the money wasn't being printed you wouldn't be able to raise the prices in the first place"
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Inflation will only fall to 2% if consumer demand decreases.
"in order for inflation to come down to 2% demand will have to weaken meaning people have to buy less things"
Pending
Customers will need to refuse higher prices to curb inflation.
"in order for inflation to come down quote customers are going to have to teach people that they don't have pricing power"
Pending
Inflation will decrease when consumers are no longer able to afford premium add-ons like extra guacamole.
"when enough Americans no longer have enough money to pay for the extra guac that's when inflation will cool down"
Pending
The primary cause of current inflation is the money printing that occurred in 2020 and 2021.
"the trigger of the inflation was the money printing that happened in 2020 and 2021"
Pending
Approximately $5 trillion was injected into the economy between 2020 and early 2022.
"about5 trillion dollar were printed between 2020 and the early part of 2022 and injected into our economy"
Pending
Increased money supply leads to a decrease in the dollar's value and a subsequent rise in prices.
"when you have all this money injected into the economy the value of each individual dollar goes down causing the price of things to go up"
Pending
The purchasing power of $100 has diminished since 2019 due to a decrease in its value.
"$100 in 2019 had a lot more buying power than $100 today because the value of the $100 went down"
Pending
Inflation disproportionately benefits those who understand finance and investing.
"inflation benefits the financial the educated"
Pending
Inflation causes the dollar's value to decrease, requiring more money to purchase goods and services.
"inflation means that the value of dollar drops and you need more money to buy things"
Pending
Inflation exacerbates the wealth gap, a trend that began decades ago, not just in 2020.
"inflation disproportionately benefits certain people you've probably heard of this growing wealth Gap The Divide between the rich and the poor that didn't start in 2020"
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Even at a 2% rate, inflation makes everyday consumption more costly over time.
"even if you have 2% inflation that makes consumption more expensive even if your groceries are growing slowly they're still growing"
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If income growth does not match inflation rates, individuals become poorer.
"if your salary isn't growing enough to keep up with inflation you're getting poorer"
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Individuals do not increase their wealth if their earnings do not outpace the perceived inflation rate.
"unless you're making more money than the real inflation numbers you're feeling they're not actually getting any richer or have the ability to get any richer"
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Significant inflation began in the early 1970s after the US dollar was delinked from the gold standard in 1971.
"inflation has been happening for decades it really started ramping up back in the early 1970s because in 1971 our dollar our money used to be backed by precious metals it used to be backed by physical gold but then in 1971 the dollar was taken off of the gold standard"
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The US dollar transitioned from being backed by gold to being a fiat currency in 1971.
"in 1971 the dollar was taken off of the gold standard and our dollar became just a piece of paper"
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The events of the early 1970s resulted in high inflation during the late 1970s and early 1980s.
"that's what happened in the early 1970s which led to the inflation problems of the late 1970s and the early 1980s"
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Interest rates significantly increased in the early 1980s as a measure to combat inflation.
"in order to bring inflation down interest rates went very high back in the early 1980s"
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Mortgage interest rates reached approximately 18% for 30-year loans in the early 1980s.
"if you wanted to get a mortgage you were paying around 18% in interest on a 30-year mortgage"
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The Federal Reserve is currently working to reverse the inflation generated in the years 2020-2022.
"the Federal Reserve Bank is working to undo all the inflation that was created in 2020 2021 2022"
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The fundamental origin of inflation is the printing of money.
"the root cause of inflation comes from the money printing in the first place"
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