longgone Posted August 20, 2020 Share Posted August 20, 2020 How do you distinguish greed from inflation ? Quote Link to comment Share on other sites More sharing options...
Biggus Posted August 20, 2020 Share Posted August 20, 2020 4 hours ago, longgone said: How do you distinguish greed from inflation ? Is this a joke? OK, I don't know, how do you distinguish greed from inflation? Quote Link to comment Share on other sites More sharing options...
richmondtw Posted August 20, 2020 Share Posted August 20, 2020 17 minutes ago, Biggus said: Is this a joke? OK, I don't know, how do you distinguish greed from inflation? LOL Boom Boom!!! Quote Link to comment Share on other sites More sharing options...
Social Justice League Posted August 20, 2020 Share Posted August 20, 2020 Human animals are greedy so inflation stops over consumption............................. Quote Link to comment Share on other sites More sharing options...
Drifty Posted August 20, 2020 Share Posted August 20, 2020 5 hours ago, longgone said: How do you distinguish greed from inflation ? I don't know...is one a fat politician and the other is a fat banker? Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted August 20, 2020 Share Posted August 20, 2020 5 hours ago, longgone said: How do you distinguish greed from inflation ? Greed is good Mr. Gekko, Inflation is also good but only 2%+/-1% Quote Link to comment Share on other sites More sharing options...
longgone Posted August 20, 2020 Author Share Posted August 20, 2020 I just wonder how one can accurately distinguish the two. At what point does inflation turn to unnecessary greed. If a Ford fiesta is made from many individual priced components and a few are just greedy suppliers ultimately the whole car increases in price. Inflation or greed. Quote Link to comment Share on other sites More sharing options...
winkie Posted August 21, 2020 Share Posted August 21, 2020 Expectations. Quote Link to comment Share on other sites More sharing options...
erat_forte Posted August 21, 2020 Share Posted August 21, 2020 Greed is when one person increases their price and gets away with it. Inflation is when everyone does. Quote Link to comment Share on other sites More sharing options...
Loving The Crash Posted August 21, 2020 Share Posted August 21, 2020 22 hours ago, longgone said: How do you distinguish greed from inflation ? Greed is an emotion that drives the efficient allocation of capital. Inflation is a concept to measure monetary expansion. The more competitive a market, the less the possibility to increase prices in that sector - preventing greedy people from raising their prices at will. Soon we will be in an environment of prolonged deflation, and the firms operating in the least competitive markets may be able to hold their prices up for longer. There's a real lack of competition in some areas of tech at the moment e.g. search, social media, operating systems etc etc. Companies in these areas e.g. Indeed, need to be broken up as their pricing power is too great.... Quote Link to comment Share on other sites More sharing options...
Locke Posted August 21, 2020 Share Posted August 21, 2020 22 hours ago, longgone said: How do you distinguish greed from inflation ? Firstly, if one understands money and value, the negative connotation of greed disappears. Greed is the emotion which drives men to create value and innovate. Inflation is an increase in the supply of a currency. Value does not exist. 17 hours ago, Unmoderated said: Inflation is also good but only 2%+/-1% State-inflicted inflation materially hurts the poor. Naturally occurring deflation raises the living standards of the poor and middle class the most. Think about how much cheaper entertainment is today than 30 years ago. Is that good or bad for poor people? Healthcare and housing are drastically more expensive. Is that good or bad for poor people? 1 hour ago, erat_forte said: Greed is when one person increases their price and gets away with it. Inflation is when everyone does. Poetic, but false. 50 minutes ago, Loving The Crash said: There's a real lack of competition in some areas of tech at the moment e.g. search, social media, operating systems etc etc. Companies in these areas e.g. Indeed, need to be broken up as their pricing power is too great.... This will happen naturally, if States stop interfering in our lives. Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted August 21, 2020 Share Posted August 21, 2020 23 hours ago, longgone said: How do you distinguish greed from inflation ? I assume it is whether the market is prepared to pay the price. Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted August 21, 2020 Share Posted August 21, 2020 16 hours ago, longgone said: I just wonder how one can accurately distinguish the two. At what point does inflation turn to unnecessary greed. If a Ford fiesta is made from many individual priced components and a few are just greedy suppliers ultimately the whole car increases in price. Inflation or greed. Ah now I see what you're saying. Greed induced prices only exists where one has pricing power through significant control of the supply chain (monopoly, oligopoly or cartel). Oil might be a good example where by OPEC can influence the price through constraining output. Oil prices feed into almost everything through transport and feed stock costs. However, they are not the same thing as inflation. Inflation is a monetary issue and should be thought of as a rising tide lifting all ships while pricing power would stand out as a single rising ship (though may lift some others that are close). So in my rather rubbish analogy greed is a swell, inflation is a sea level. Quote Link to comment Share on other sites More sharing options...
longgone Posted August 21, 2020 Author Share Posted August 21, 2020 1 hour ago, erat_forte said: Greed is when one person increases their price and gets away with it. Inflation is when everyone does. ultimately this is it. inflation a chain of greed events in which the end result is price increase in product or service. ultimate inflation is a price increase of necessary goods services and shelter that are required to survive everything else that is optional price increases are only defined what people will pay or just won`t at all. Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted August 21, 2020 Share Posted August 21, 2020 45 minutes ago, Locke said: State-inflicted inflation materially hurts the poor. Naturally occurring deflation raises the living standards of the poor and middle class the most. If you follow that through to conclusion it isn't the case. In a deflationary environment the poorest would have their wages cut or be laid off as declining revenue squeeze margins or tax take for their benefits. In an inflationary environment companies can sit between increasing revenues and delayed pay rises and that actually improves unemployment. All things being equal a low level of inflation is a good thing. Quote Link to comment Share on other sites More sharing options...
Locke Posted August 21, 2020 Share Posted August 21, 2020 8 minutes ago, Unmoderated said: In a deflationary environment the poorest would have their wages cut or be laid off as declining revenue squeeze margins or tax take for their benefits Has the massive fall in food prices (i.e. deflation) since mechanisation and automation of the food supply been good or bad for poor people? Quote Link to comment Share on other sites More sharing options...
Locke Posted August 21, 2020 Share Posted August 21, 2020 23 minutes ago, longgone said: inflation a chain of greed events in which the end result is price increase in product or service. What about the greedy capitalist who crushes raw material prices and wages, resulting in lower prices [deflation]? Is that not greed, because the prices are falling? Quote Link to comment Share on other sites More sharing options...
longgone Posted August 21, 2020 Author Share Posted August 21, 2020 material prices and wages cannot be manipulated if they are still bought and the worker still turns up on monday. vote with your feet Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted August 21, 2020 Share Posted August 21, 2020 5 minutes ago, Locke said: Has the massive fall in food prices (i.e. deflation) since mechanisation and automation of the food supply been good or bad for poor people? What massive fall in (nominal) food prices? Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted August 21, 2020 Share Posted August 21, 2020 6 minutes ago, Locke said: What about the greedy capitalist who crushes raw material prices and wages, resulting in lower prices [deflation]? Is that not greed, because the prices are falling? Like Tesco? Quote Link to comment Share on other sites More sharing options...
winkie Posted August 21, 2020 Share Posted August 21, 2020 Greed wants more debt.....inflation kills the old debt......rinse, repeat and carry on, until a loss of confidence in the currency. Quote Link to comment Share on other sites More sharing options...
Riedquat Posted August 21, 2020 Share Posted August 21, 2020 37 minutes ago, Unmoderated said: What massive fall in (nominal) food prices? Depends what timescale you're talking about. Food is very cheap by all historical standards (including within living memory). On the other hand it's a long time since there was a famine in the UK, from which you could conclude that the price of food wasn't an issue. Malnutrition == food is too expensive, obesity == food is too cheap, although that's a very big oversimplification (there are a lot of social factors involved and you can avoid malnutrition even if food is expensive by having no money left for anything else). Quote Link to comment Share on other sites More sharing options...
Locke Posted August 21, 2020 Share Posted August 21, 2020 7 minutes ago, Riedquat said: Malnutrition == food is too expensive Hmm. Do you mean starvation? 8 minutes ago, Riedquat said: obesity == food is too cheap Actually, I believe that linoleic acid (vegetable/seed oil) consumption + refined carbs = metabolic dysfunction. Symptoms are obesity, diabetes, heart disease, mental problems, poor immune function. Do those symptoms line up with any crises today? Quote Link to comment Share on other sites More sharing options...
zugzwang Posted August 21, 2020 Share Posted August 21, 2020 2 hours ago, Locke said: Greed is the emotion which drives men to create value and innovate. Value does not exist. WTF? Even your infantile caricatures of human motivation are contradictory. On a board dedicated to discovering value in the housing market... Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted August 21, 2020 Share Posted August 21, 2020 22 minutes ago, Riedquat said: Depends what timescale you're talking about. Food is very cheap by all historical standards (including within living memory). On the other hand it's a long time since there was a famine in the UK, from which you could conclude that the price of food wasn't an issue. Malnutrition == food is too expensive, obesity == food is too cheap, although that's a very big oversimplification (there are a lot of social factors involved and you can avoid malnutrition even if food is expensive by having no money left for anything else). Food is cheap in real terms, not in nominal terms. There has not been deflation, but rather inflation and it happens that inflation of other goods and services has increased at a greater rate. However, if we go back far enough we end up getting into growth models. Since inflation is a rise in the price level (or a decrease in the value of a unit of currency) when we say cheap by historical standards we mean it consumes a lower %of our take home pay. Inflation is a rising tide. If it were equally distributed it wouldn't matter that food increased by 2% when your wages improved by 2%. Improvements in productive capacity free up labour to focus on other areas of production. From field, to factory to tech. Quote Link to comment Share on other sites More sharing options...
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