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October 27, 2021 at 9:05 AM #823448October 29, 2021 at 12:06 PM #823465gzzParticipant
Restaurants are more expensive? You mean like inflation?
Yes, inflation! And no needed hedonic adjustment, similar but the opposite of phones, TVs, cars, etc. Prices at restaurants are going up while quality is going down.
But it is also an example of transitory inflation caused by one-time factors. The industry had a double supply shock.
First, the “900 a week in unemployment to people who were making $500 a week working” federal policy hit the labor supply of restaurants really hard.
Second, COVID caused a lot of restaurants that were marginal to shutdown permanently. While some might reopen, others had owners just retire, while others changed industries. Reopening during a severe labor shortage and shifting COVID regulations is a lot harder than just having an existing business on autopilot.
October 29, 2021 at 2:25 PM #823466sdrealtorParticipantI bought a TV recently. It was quite expensive. Far more than I ever paid before. Sure you can get a cheap one several generations of technology older but current technology tv’s have gone up a lot. I also looked at the car I drive last night. I got a new one in December with one week delivery. Now I’d have to wait until June or buy a used one for more than I paid ten months ago. Or I order today, wait until June to get it and pay 9.3% more for the exact same vehicle without 1 year free use of the superchargers.
I’ve got a 3 year old iPhone but I know a current replacement of new release will be substantially more than I paid for a new one 3 years ago.
You keep discounting inflation but never post a real actual current example of you going out and actually buying something. That leads me to think your very frugal and dont spend much else you would experience much more of it
And the inflationary is not transitory now. If things go back down substantially we can say yes it was but for now its inflation. Only in the future can you make that claim. If prices dont pullback it wont have been transitory now wouldnt it
October 29, 2021 at 2:37 PM #823468teaboyParticipant[quote=sdrealtor]And the inflationary is not transitory now. If things go back down substantially we can say yes it was but for now its inflation. Only in the future can you make that claim. If prices dont pullback it wont have been transitory now wouldnt it[/quote]
“Transitory” inflation could mean one of three scenarios:
1.Prices rise and plunge.
2.Prices rise and stay where they are.
3.Prices rise and continue to rise, but more slowly.
https://www.globest.com/2021/08/25/when-transitory-inflation-really-means-dont-worry/#:~:text=Inflation%20has%20wreaked%20havoc%20on,apartment%20materials%20are%20no%20different.&text=%E2%80%9CTransitory%E2%80%9D%20inflation%20could%20mean%20one,to%20rise%2C%20but%20more%20slowlyOctober 29, 2021 at 3:00 PM #823469anParticipant[quote=teaboy][quote=sdrealtor]And the inflationary is not transitory now. If things go back down substantially we can say yes it was but for now its inflation. Only in the future can you make that claim. If prices dont pullback it wont have been transitory now wouldnt it[/quote]
“Transitory” inflation could mean one of three scenarios:
1.Prices rise and plunge.
2.Prices rise and stay where they are.
3.Prices rise and continue to rise, but more slowly.
https://www.globest.com/2021/08/25/when-transitory-inflation-really-means-dont-worry/#:~:text=Inflation%20has%20wreaked%20havoc%20on,apartment%20materials%20are%20no%20different.&text=%E2%80%9CTransitory%E2%80%9D%20inflation%20could%20mean%20one,to%20rise%2C%20but%20more%20slowly%5B/quote%5D
That literally explain the last century. So, I guess inflation over the last century is just transitory. Nothing to see here. lolOctober 29, 2021 at 3:32 PM #823470sdrealtorParticipant[quote=teaboy][quote=sdrealtor]And the inflationary is not transitory now. If things go back down substantially we can say yes it was but for now its inflation. Only in the future can you make that claim. If prices dont pullback it wont have been transitory now wouldnt it[/quote]
“Transitory” inflation could mean one of three scenarios:
1.Prices rise and plunge.
2.Prices rise and stay where they are.
3.Prices rise and continue to rise, but more slowly.
https://www.globest.com/2021/08/25/when-transitory-inflation-really-means-dont-worry/#:~:text=Inflation%20has%20wreaked%20havoc%20on,apartment%20materials%20are%20no%20different.&text=%E2%80%9CTransitory%E2%80%9D%20inflation%20could%20mean%20one,to%20rise%2C%20but%20more%20slowly%5B/quote%5DI agree but I was using gzz”s def
October 29, 2021 at 3:58 PM #823471scaredyclassicParticipantEgo inflation is on the rise.
October 30, 2021 at 4:02 PM #823474gzzParticipantSDR, I am on the frugal side overall but last month I purchased a 33k new CUV at msrp and 3 new iphone 13 promaxes for me, my partner, and my longest serving/suffering employee. That’s $1180 a pop with tax x 3.
My prior phone was the regular 11. 2 years ago it was 699 before tax, now Apple is selling the 11 new for $499. It is irrelevant that it is now an “old model” as price decreases is literally what deflation is.
The old car and phone were fine, I just wanted the best camera for my coming son and a car with the latest safety features. The pretax 1099 price point of the 13 promax is the same as Apple’s past few flagships, despite a ton of upgrades. We’ll also probably get one if those $1000 fancy strollers, ideally used, and then about $1500 for a postpartum doula.
October 30, 2021 at 4:03 PM #823475gzzParticipantTransitory whenever I have seen it means a return to pretrend inflation of about 2%.
October 30, 2021 at 5:10 PM #823476sdrealtorParticipantBuying an iPhone 11 today is like buying spoiled milk. It’s depreciation not deflation now that it’s not the newest technology. When comparing phone prices you should be comparing the difference between buying top of line them and now. There was no $1200 phone then. The bar to current technology is higher cost now
October 30, 2021 at 6:50 PM #823477scaredyclassicParticipant[quote=sdrealtor]Buying an iPhone 11 today is like buying spoiled milk. It’s depreciation not deflation now that it’s not the newest technology. When comparing phone prices you should be comparing the difference between buying top of line them and now. There was no $1200 phone then. The bar to current technology is higher cost now[/quote]
One man’s spoiled milk is another man’s yogurt.
November 2, 2021 at 3:27 PM #823489gzzParticipantDepreciation and deflation have actual definitions in economics, and not the way you use the words. The decrease in the market price of a new product over time is the latter, not the former.
November 2, 2021 at 3:29 PM #823490gzzParticipantOne man’s spoiled milk is another man’s yogurt.
Mom has my old 11, and she likes it a lot. She was holding onto her 8 because she liked the fingerprint ID.
November 3, 2021 at 10:06 AM #823498sdrealtorParticipant[quote=gzz]Depreciation and deflation have actual definitions in economics, and not the way you use the words. The decrease in the market price of a new product over time is the latter, not the former.[/quote]
An iPhone 11 is not a new product. It’s a clearance item on the clothes rack with the rest of the men’s medium and small sizes. The iPhone 13 is a new product
November 3, 2021 at 2:50 PM #823501anParticipant[quote=sdrealtor][quote=gzz]Depreciation and deflation have actual definitions in economics, and not the way you use the words. The decrease in the market price of a new product over time is the latter, not the former.[/quote]
An iPhone 11 is not a new product. It’s a clearance item on the clothes rack with the rest of the men’s medium and small sizes. The iPhone 13 is a new product[/quote]
Nordstrom Rack vs Nordstrom, Off 5th vs Saks, etc. -
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