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How come we experience so much more inflation than deflation? in other words, why does our buying power decrease far more often than it increases?
(lemmy.dbzer0.com)
this post was submitted on 22 Jul 2023
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This model you’re putting forward seems to imply that when energy costs increase, it isn’t really felt by the poor.
Here in Colorado, lots of food has doubled in price. That’s big for poor people.
What I’m asking is: is the food not a major component of inflation in Europe as well. And if it is, do you not see that as connected to energy prices?
You need to improve your reading comprehension. I never said any of these things.
Obviously energy prices can have an impact on food prices, in fact they do a lot with conventional agricultures dependence on fertilizers made from natural gas.
While we’re discussing reading comprehension, I actually made an argument as to why the poor are especially, universally, affected more by inflation.
You can’t just counter the conclusion without countering the argument. How is what I described not something that’s always operating anywhere inflation is happening?
Because you failed to understand my argument. I did address your concern above.
Your argument is that because poor people don’t have savings, they don’t get affected by inflation.
No, my argument is that people with savings are effected more by inflation specifically, but of course due to low coping capacity poor people are more effected by any negative economic situation. However if you have no savings, but a relatively stable inflation adjusted income, then inflation does not effect you much.