Well, tell this fairy tale to the single mother (or father) who struggles every day to keep a roof over their children's heads and food on the table. As a parent with a college degree in business administration and accounting, I experienced inflation in the 70s. My paycheck covered the rent and utilities, just barely. While earning my degrees, I waited tables for 90 cents per hour. Food was purchased with any tips that I received. Those days a quarter was considered a good tip. Walking to and from work ( I had no car) I would look for any change on the street because I would be that much closer to being able to but the bag of pinto beans so we could eat for the next few days.
People that think inflation is harder on the well off have never experienced inflation. That 65 cents might mean not being able to purchase the product you or your child needs for survival.
Do you even live in the real world?

Inflation Is Good for You
Don’t panic over milk prices. Inflation is bad for the 1 percent but helps out almost everyone else.
Jon Schwarz
November 10 2021, 3:25 p.m.
DONATE
NEW YORK, NEW YORK - NOVEMBER 05: People shop at an outdoor food market in Manhattan on November 05, 2021 in New York City. Inflation is causing U.S. consumer prices to increase solidly in the past few months on items such as food, rent, cars and other goods, A new report by the United Nations Food and Agriculture Organization (FAO) shows that global food prices have hit the highest level in over a decade. In the last year alone, food prices have risen by more than 30%. (Photo by Spencer Platt/Getty Images)As inflation is causing U.S. consumer prices to increase, people shop at an outdoor food market in Manhattan, N.Y., on Nov. 5, 2021. Photo: Spencer Platt/Getty Images

THE TOP STORY on the New York Times website this morning is about inflation, and it’s scary: “Inflation spiked in October, sinking Washington’s hopes that price gains would slow down.”
The Washington Post led with a similar call for alarm: “Prices climbed 6.2 percent in October compared to last year, the largest increase in 30 years, as inflation strains economy.”

Television, which follows the lead of the Times and the Post as surely as death follows life, will now produce many more peculiar segments like CNN’s botched portrayal of the impact of inflation on a large Texas family that buys huge quantities of milk.


Whenever the corporate media moves en masse like this, it’s a good idea to slow down and consider what’s actually happening, and why.

A panic about inflation usefully creates the conditions to weaken the power of working people.
And what’s happening is this: The inflation freakout is all about class conflict. In fact, it may be the fundamental class conflict: that between creditors and debtors, a fight that’s been going on since the foundation of the United States.

That’s because inflation is often good for most of us, but it’s terrible for the kinds of people who own corporate news outlets — or, say, founded coal firms. And a panic about inflation usefully creates the conditions to weaken the power of working people.


Today’s stories were generated by the release of inflation numbers for October by the U.S. Bureau of Labor Statistics. BLS found that prices for all goods rose 0.9 percent in the last month. In other words, on average, products that cost $10.00 in September now cost a terrifying $10.09.

Also, overall prices are now 6.2 percent higher than they were a year ago. So something that cost $10.00 in October 2020 is now $10.62.

You’ll notice here that both the Times and Post were misleading about this. The Post headline — “Prices climbed 6.2 percent in October compared to last year” — makes it sound like prices went up 6.2 percent in October, i.e., in one month. The Times similarly has a graph with a label saying prices went up “6.2 percent in October.” That truly would be a problem. Fortunately, that didn’t happen.

First, inflation lessens the real value of debt. In 2020, American households had around $14.5 trillion in debt from their mortgages, credit cards, student loans, and other sources. Inflation of 6.2 percent means that the real value of that $14.5 trillion is now just $13.65 trillion in last year’s dollars.

In other words, the inflation over the past year has effectively t***sferred $850 billion in wealth from creditors to debtors. That’s a lot of money.

Most people are a mixture of creditors (e.g., you have a bank account) and debtors (you have a mortgage and student loans). But overall, this $850 billion has generated a big check written by the tippy-top of the income scale to everyone else. And as you’d expect, the people at the tippy-top don’t like this.

Second, inflation generally accompanies economic booms, when the unemployment rate is low and workers have the market power to demand higher pay. That’s what’s happening now: As prices increased 6.2 percent over the past year, wages for regular people went up 5.8 percent. In other words, inflation barely touched their purchasing power. And with almost 300 labor strikes in the U.S. so far this year, workers are leveraging their power to demand better compensation at historic rates. So while inflation can be a significant problem for workers if they don’t get it back in higher paychecks, that seems unlikely today.

Moreover, the median American recently had about $65,000 in debt. And while inflation has reduced the real value of each dollar of wages — in other words, its worth relative to tangible things — it’s done the same to the real value of each dollar of debt. Workers who get raises will have more dollars to pay off the same dollar amount of debt.

Put these two things together — lowered values for their assets and higher wages for workers — and you can understand why the rich people who run the U.S. absolutely detest inflation.

However, there is one rock that can k**l both these birds at the same time. The Federal Reserve can raise interest rates. This would slow the economy and increase the unemployment rate, lessening worker bargaining power. Less bargaining power would mean lower or nonexistent raises, which would eventually t***slate into lower inflation.

That’s what all today’s inflation panic is ultimately aimed at: creating an economy with higher unemployment, lower growth, and more frightened workers. Whether America’s creditors can make this happen remains to be seen, but we shouldn’t have any illusions about what they’re trying to do. And we definitely shouldn’t help them do it.

Correction: November 11, 2021

This article has been updated to clarify how inflation can reduce the value of debt held by American households. The article previously stated that the median debt would go down by $4,000. However, the reduction in debt on average for individuals isn’t calculable with current data.

Inflation Is Good for You
Don’t panic over milk prices. Inflation is bad for the 1 percent but helps out almost everyone else.
Jon Schwarz
November 10 2021, 3:25 p.m.
DONATE
NEW YORK, NEW YORK - NOVEMBER 05: People shop at an outdoor food market in Manhattan on November 05, 2021 in New York City. Inflation is causing U.S. consumer prices to increase solidly in the past few months on items such as food, rent, cars and other goods, A new report by the United Nations Food and Agriculture Organization (FAO) shows that global food prices have hit the highest level in over a decade. In the last year alone, food prices have risen by more than 30%. (Photo by Spencer Platt/Getty Images)As inflation is causing U.S. consumer prices to increase, people shop at an outdoor food market in Manhattan, N.Y., on Nov. 5, 2021. Photo: Spencer Platt/Getty Images

THE TOP STORY on the New York Times website this morning is about inflation, and it’s scary: “Inflation spiked in October, sinking Washington’s hopes that price gains would slow down.”
The Washington Post led with a similar call for alarm: “Prices climbed 6.2 percent in October compared to last year, the largest increase in 30 years, as inflation strains economy.”

Television, which follows the lead of the Times and the Post as surely as death follows life, will now produce many more peculiar segments like CNN’s botched portrayal of the impact of inflation on a large Texas family that buys huge quantities of milk.


Whenever the corporate media moves en masse like this, it’s a good idea to slow down and consider what’s actually happening, and why.

A panic about inflation usefully creates the conditions to weaken the power of working people.
And what’s happening is this: The inflation freakout is all about class conflict. In fact, it may be the fundamental class conflict: that between creditors and debtors, a fight that’s been going on since the foundation of the United States.

That’s because inflation is often good for most of us, but it’s terrible for the kinds of people who own corporate news outlets — or, say, founded coal firms. And a panic about inflation usefully creates the conditions to weaken the power of working people.


Today’s stories were generated by the release of inflation numbers for October by the U.S. Bureau of Labor Statistics. BLS found that prices for all goods rose 0.9 percent in the last month. In other words, on average, products that cost $10.00 in September now cost a terrifying $10.09.

Also, overall prices are now 6.2 percent higher than they were a year ago. So something that cost $10.00 in October 2020 is now $10.62.

You’ll notice here that both the Times and Post were misleading about this. The Post headline — “Prices climbed 6.2 percent in October compared to last year” — makes it sound like prices went up 6.2 percent in October, i.e., in one month. The Times similarly has a graph with a label saying prices went up “6.2 percent in October.” That truly would be a problem. Fortunately, that didn’t happen.

First, inflation lessens the real value of debt. In 2020, American households had around $14.5 trillion in debt from their mortgages, credit cards, student loans, and other sources. Inflation of 6.2 percent means that the real value of that $14.5 trillion is now just $13.65 trillion in last year’s dollars.

In other words, the inflation over the past year has effectively t***sferred $850 billion in wealth from creditors to debtors. That’s a lot of money.

Most people are a mixture of creditors (e.g., you have a bank account) and debtors (you have a mortgage and student loans). But overall, this $850 billion has generated a big check written by the tippy-top of the income scale to everyone else. And as you’d expect, the people at the tippy-top don’t like this.

Second, inflation generally accompanies economic booms, when the unemployment rate is low and workers have the market power to demand higher pay. That’s what’s happening now: As prices increased 6.2 percent over the past year, wages for regular people went up 5.8 percent. In other words, inflation barely touched their purchasing power. And with almost 300 labor strikes in the U.S. so far this year, workers are leveraging their power to demand better compensation at historic rates. So while inflation can be a significant problem for workers if they don’t get it back in higher paychecks, that seems unlikely today.

Moreover, the median American recently had about $65,000 in debt. And while inflation has reduced the real value of each dollar of wages — in other words, its worth relative to tangible things — it’s done the same to the real value of each dollar of debt. Workers who get raises will have more dollars to pay off the same dollar amount of debt.

Put these two things together — lowered values for their assets and higher wages for workers — and you can understand why the rich people who run the U.S. absolutely detest inflation.

However, there is one rock that can k**l both these birds at the same time. The Federal Reserve can raise interest rates. This would slow the economy and increase the unemployment rate, lessening worker bargaining power. Less bargaining power would mean lower or nonexistent raises, which would eventually t***slate into lower inflation.

That’s what all today’s inflation panic is ultimately aimed at: creating an economy with higher unemployment, lower growth, and more frightened workers. Whether America’s creditors can make this happen remains to be seen, but we shouldn’t have any illusions about what they’re trying to do. And we definitely shouldn’t help them do it.

Correction: November 11, 2021

This article has been updated to clarify how inflation can reduce the value of debt held by American households. The article previously stated that the median debt would go down by $4,000. However, the reduction in debt on average for individuals isn’t calculable with current data.

GEE thanks good to know that the shock of filling my gas tank was only in my imagination. I could have sworn that I use to pay just under 30 to fill this time it was 40 dollars. and I just went grocery shopping It cost me over 200 should have cost 150. I'm on social security a fixed income. oh wow, my utilities just came in so it's good you let me know about the one percent thing cause they look higher this time when I haven't hardly used them you know just turned the heat on the beginning of November so damn if my imagination isn't working with them as well. Thanks for the update I'm glad I'm not one of those though at this rate eating going to be really thin

Oh those poor billionaires having to give their limo driver more expenses to fill the gas tank, let's not leave out their private shoppers or chef expenses now more for the filet mignon, capers and fresh seafood.
Yep, just think how they must be suffering with the higher cost of jet fuel , their private pilot passes on
Heating that 15 bedroom mansion and waterfall swimming pool....oh the pain.
Gee, maybe those of us on fixed income need to chip in, have a fund raiser.

I'd be so damn embarrassed if I posted this crap......but she defends her post..
I'm so confused

What do you wanna bet that just before the 2022 e******n, as the vaxed death rate and hospitalizations increase.....the fear propaganda goes into overdrive, increased restrictions and very possibly even lockdowns to some degree.

Must have a National Mail in b****t campaign
By some miracle Democrat's begin winning in the red-ist of red states, conservatives winning with tens of thousands of more v**es at night , lose by tens of thousands in the morning.

Just saying

They spent (Exhausted) over 50 years to have/be all powerful by way of corruption, lying, manufacturing and fabrication of lies, deception.
They have owned the media and newly have all power over social media, but now tell the media what they can and cannot say.
They decided to suppress any opposition speech, and fabrication of an alternate reality is pumped into the brainwashing machine.

I very much appreciate and agree with your post but believe your overly optimistic that true conservatives will take power. Conservatives are proving to be Rhinos in higher and higher numbers and any conservatives that do win, there are have high odds of being a Rhino.
I'm the eternal optimists and sadly, the lens I'm looking through has little hope for America.
The only hope I have is Jesus and his promises

I see America being in a slow burn, that will continue increasing.

Gee, just here to brighten your day.
Just call me mister happy..
The new world order , those behind the scenes have America exactly where they want her.
United we stand divided we fall
Is it possible we can get more divided?
Husband's leaving wives, wives leaving Husband's
Families hating one another
Neighbors hating one another

Over politics and now more recently to the political divide, v*****e divide of the vaxed against the unvaxed to extreme, never before believed possible levels of h**e and divide.

I'm sorry to believe the devil himself has gained strongholds that before were unthinkable but now a reality.

The Democrat/C*******t Party knows that you can't "fundamentally t***sform" America into a socialist/f*****t/c*******t nightmare unless you destroy it's foundations first. And although Biden/Harris are indeed incompetent, I don't believe these disastrous policies are merely incompetence. What is staggering is the number of l*****t Americans who have enjoyed the benefits of living in a free society so eager to install a system of governance that has failed, and failed miserably EVERY time it'd been tried. And not just political failure. There is a trail of over 112 million deaths and counting, (murdered by their own governments,) and millions more falsely imprisoned and tortured. Destroying the middle class is a prerequisite to building-back-better, as a socialist/f*****t/c*******t/l*****t style of government. Inflation is just one tool in the l*****t tool-box to gain power and control over American citizens.