It sounds like inflation wasn't caused by the pandemic but rather it was caused by the government response to the pandemic. Those are different things.
Absolutely!.... My libertarian hair on the back of my neck bristled at this repeated assertion. The economy doesn't f****** know that there's a virus.. but the economy does respond Rationally to the monetary policy of too many dollars chasing too few goods = macro inflation.
Kyla: “only problem is that it caused inflation” Liz: “that’s a huge problem” Kyla: “well sorta” Bruh wut is this chick talking about, the cost of living has been a the number one problem for most Americans.
The government didn't help. For the most part, people would still have voluntarily isolated. That being said, the Federal Reserve expanding the money supply was silly.
She doesn't think the government shutting down busimesses and printing a shit ton of money to pay people to do nothing has been a significant contributor to inflation? Really? Clueless!!
"Certain studies say" becomes a very unconvincing refrain when making a case for your position when you are unable to articulate how one of the papers you are citing comes to its conclusion
Kyla, needs to go deeper in economics, I will recommend her to invest in a good Phd program. Western Kentucky does not have good economics schools Regarding inflation, Friedman solved the question, and this economist does not know about it?
It appears that inflation wasn't the main cause of the pandemic but rather a consequence of the government's response to it, highlighting the distinction between the two. It's quite disheartening to observe the multitude of challenges our economy is currently grappling with, including uncertainties, housing issues, adverse weather conditions, foreclosures, global shifts, and the lingering effects of the pandemic, all contributing to the existing instability. The slow economic growth, escalating inflation, and disruptions in trade require immediate attention from all sectors to restore stability and promote growth. How do you suggest we effectively tackle these critical issues?
Kyla's insights are truly enlightening, showcasing her brightness and curiosity, particularly in connecting with the younger generation and educating them on economic matters. The pandemic itself did not directly cause inflation; rather, the Federal Reserve's response to the pandemic played a significant role in its escalation. This distinction is crucial. If the Fed had not engaged in substantial money creation and if the federal government had not spent trillions it did not possess, we would not have witnessed the widespread price increases across our economy, which is indeed concerning. It's unsettling to witness the depreciation of the US dollar due to inflation while other currencies strengthen, creating a sense of uncertainty. Despite this, there remains some level of trust in the dollar's stability. I understand your apprehension about the potential devaluation of your $420,000 retirement savings. Exploring alternative strategies to safeguard your savings appears prudent. Have you considered any specific alternatives or plans to ensure the security of your retirement funds?
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
This is definitely considerable! Do you think you could suggest any professionals or advisors I can get on the phone with? I'm in dire need of proper portfolio allocation.
I'm grateful for your help. After looking up her name online and checking out her credentials, I must say, I'm really impressed. I reached out to her because I could really use all the help I can get. We've set up a call for further discussion.
As someone who really likes the Austrian economic view, I think it's logically undeniable that monetary inflation tends to cause price inflation. If you have more money, but not more goods and services to spend the money on, there's no place to go but to have higher prices. I'm not sure, but I think the Federal Reserve relies on monetary inflation to *cause* an increase in goods and services, and thus "stimulate" the economy. But since there's no guarantee that more money WILL increase goods and services, they're mostly just redirecting existing resources into different goods and services, as well as causing price inflation and setting us up for inevitable bust cycle. Just to be clear, I don't think that monetary inflation is the only way to cause price inflation. Just that it's the primary way it occurs in our society due to the existence of the Fed and its inflationary policies. So yeah, the stimulus checks probably did a lot to help cause the current round of price inflation, in addition to what the Fed was doing. "Vibes" might influence how people react to the economy, but vibes can do nothing to change the goods, services, resources, and money actually available on the market. Perhaps it encourages people to tough it out through hard times and persevere longer, or something like that. And speaking of vibes, Kyla really looks like she doesn't want to be there! ;-)
The pandemic did NOT cause inflation. The Federal Reserve’s response to the pandemic is what caused it. That distinction matters. If the Fed had not engaged in massive money creation and had the federal government not spent trillions it did not have we would not have had the increase in prices across the economy. Inflation is ALWAYS a function of creating more money than the increase in goods and services.
Inflation is a monetary phenomenon. Inflation does not equal changes in price levels. It's a measure of the lack of purchasing power of the currency. Prices going up and down due to market forces is not inflation - that's money and markets providing price signals. Inflation is a monetary issue because it distorts the pricing signals. It should be measured in changes to M2, as the changes in M2 CAN and DO predict the direction of future inflation.
I keep trying to explain this exact thing to people. Prices aren't rising, your money is losing purchasing power because the money supply was inflated.
@@authenticallysuperficial9874 unless you point out the contradiction, you've made no point. Prices move for various reasons, but the one that institutes theft (and not market forces) is monetary inflation. try a little more next time.
The answer to that question is very simple. There are 2 sorts of people in society. The productive people and the looters. Whats wrong with the economy is that the looters are in charge and they can print the money that the rest of us have to work for.
Lol I turned it off after she completely dismisses monetary policy's role in historic inflation. I can't take her seriously after that flippant response.
I like Kyla, but discussing labor market data and not knowing that the birth/death model is about businesses, not people, is very telling. She needs a better grasp of this information.
The U.S. quadrupled the money supply in very short order. We ALSO did something never attempted previously; sending money DIRECTLY to consumers. More money and dwindling supply of goods and services is basic supply/demand relationship. Seems reasonably simple to me.
"Big food companies are seeing their highest profits in two decades." How much of that is inflation though? You cannot look at the raw numbers and think they're making record profits. You have to look at the profit margins. From what I saw the margins are around 1.5% That's not much of a gouge. No one wants to hear that the party is over, that taxes have to go up, or that spending on entitlements must be reduced. No politician wants to say that the Federal Reserve is a cartel of banks. They'd rather blame greed or foreigners or something that is marginally to blame at best.
Tyson in Q1 22 showed an increase in operating profit margin from 13.2% to 19.1%. That's over a 40% increase in relative operating profit margin. The quarter ending Jan 1, 22 Tyson's beef had increased in price by 31.7%. Average increase for all their products was 19.6%.
@@timgwallis I am biased against big government policies, which she likes to promote. If you're trying to be a public intellectual, you should make the case for your point, not ignore or delete comments
Demand without supply increases prices. Demand was artificially bumped up by stimulus checks as production was choked off by Covid shutdowns. (Remember toilet paper prices in 2020?) Oil production was also hurt by pipeline construction shutdowns, drilling permit halts and refinery growth restrictions. Also, electricity prices are up because of increased use of expensive "renewable" sources. All this increases costs which then show up in consumer prices.
Anyone who compares fed debt to borrowing to start a business needs remedial economic lesson. Government creates zero wealth. It just takes from one group and gives to another. A business is all about creating new wealth and not shuffling deck chairs.
Here the issue is that they decided to have Kyla. She is fun and good for tt, but still too young to see beyond headlines, not that being young is an issue on itself, but she will get there.
The post-covid inflation was brought about by the massive 2020 FED expansion of of the money supply and the FEDs failure to withdraw this excess money as we began moving out of the recession. This is as simple to understand as the equation of exchange; M x V = P x Q.
God, vibes is the least objective metric to base the outlook of an economy on. people in their everyday lives know less about their world than the charts.
A peer reviewed paper is not enough to support economic theory. This economist sounds as a keynesian when she is willing to give a chance to housing subsidies, how about removing the excessive regulation in most cities? How about letting innovation in manufactured homes take care of housing demand? How about rethink our dependency on lumber to built?
Government spending and the welfare state. It's always Government spending and the welfare state. I encourage everyone to watch Thomas Sowell's countless videos talking about how governments and their regulations and spending often cause more calamity than the original market downturn did itself.
There was the comment about how housing spiked as a wealth generator since the 1980s and why. It's because it was incentivised/subsidsed by the government and markets, by cheaper and cheaper borrowing costs much in the same way higher education has been. All the while, "low" inflation drove rates even lower allowing the government to borrow and print more money. During these decades (before the recent bout of official inflation) we were told there was little to no inflation, but I'd argue that there was massive inflation .... concentrated in housing, higher education and healthcare (the latter subsidized by Medicare/Medicaid/Obamacare). All this talk about how the government needs to provide cheaper housing will just lead to more housing inflation. If Gen Z and younger Millennials truly want cheaper housing, then move to Pittsburgh, Detroit, or pretty much anywhere in the Midwest. Sorry, we can't all live in New York, San Francisco, or Austin, but I'm sure today's politicians will convince you it's your right to affordable penthouses in Manhattan.
The obvious primary cause of inflation was the increase in the money supply, plain and simple. M2 increased 40% from Feb 2020 to Feb 2022. The normal increase in M2 during that 2 year period would have been 10%, 1/4th what it actually was. There was some exacerbation caused by some supply chain issues but those were minor. The other issue was that demand for goods and services was way down the first half of that period. So as we came out of the pandemic demand skyrocketed compared to what it was the year before and that's when inflation really took off.
Keep in mind that the government, especially when they're Democrats, are always eager to blame anyone else but themselves. The fact that Harris is somehow intimating that its b/c of price gouging, is ludicrous and insulting to citizens.
@@dogg-paws you have the same money chancing fewer goods due to supply chain issues, inflation happens. You have demand preferences shift you have the same money redirected to chase the same supply, inflation happens. You have corporations raising prices on the same goods, inflation happens. And yes newly created money chasing the same goods can create inflation, but it’s not the only factor and it doesn’t guarantee inflation. It’s complicated, not simple. If you want to trick yourself into thinking it’s simple to comply with your ideological bias, then whatever.
@@timgwallis And yet there was no sign of massive shortages, barring a few products like baby formula. The economy did not show any significant sign of "fewer goods" like you claimed; nothing you described actually happened the way you said it did. This points out the increase in money supply as being the primary cause, just as @jderoma4382 says. You're a deceiver, just like Kyla Scanlon is. Repent of your errors.
If you can work a job from home, it's also a job that is vulnerable to outsourcing, whether to a lower cost of living region of the U.S. or internationally. Wish it wasn't true, yet it is.
The Federal Reserve should not have expanded the money supply, at least by as much as they did. It's not a coincidence that Switzerland only experienced a little inflation, when their central bank inflated the least of all the central banks.
Insurance is only a viable plan if most of the people buying the insurance never file a claim. As soon as you are trying to use the insurance model for something that everyone is experiencing it cannot be solvent. So, I think they are quite right, that people who want to live in high-risk areas will have to either pay massive premiums or simply plan financially to handle exigencies themselves.
This girl was a really poor interview. Not much understanding of ANY of the metrics being used in research that she quotes. Her followers might as well just use Google
Lol. Economist? Raising prices due to rising costs in production and labour is not a price 'hike', it's not even a price increase when the underlying currency has been devalued through inflationary money printing.
Some of the stuff she is saying I’m not sure I agree with. The home insurance stuff she said, makes a lot of sense but the grocery store examples. I’m not really sure she understand how the business works there outside of a general perspective. For example one of the reason Kroger wants the deal because they want to use economy of scale to bring down the cost, especially as since their employees are unionized. And even with the manufacturer argument, Walmart uses how big they are to influence lower prices for them, and which they pass on to there customers.
If you had taken the time to review Campbell Soup Company's quarterly financial results, you would see that your claim about them driving inflation by opportunistically hiking prices makes absolutely no sense.
This woman is clearly a biased actor and has no understanding of basic supply and demand. Why even interview this person? The downfall of Reason continues at breakneck speed.
Birth Death Model is not "less people are dying" miss Kayla. It is new business creation/failing. So.. vibe wise more businesses are dying than ever..FYI.
The birth death model isn't about people dying it's about business formation and collapse. When the economy turns either from positive to negative or negative to positive the birth/death model either overestimates or underestimates new job formation.
The problem with social sciences is that "studies" show all kinds of things that turn out to be untrue. In the true physical sciences, nobody says "studies show". If it's reality, you can prove it to yourself. For example, kids in physics class do labs to show them that the laws of gravitation are real and independent of anyone's bias. And while we have liberal and conservative economists, physicists are never described as such.
Really like Kyla and everything she has to say. She is obviously bright and curious and I think she is really connecting with the younger folks and educating them where there seems to be a lack of economic sensibility. I gave my 20 something YO daughter her latest book. Always enjoy Zach and Liz.
Same here. I've been following Kyla from early on, and I can confirm from my own experience she is also very gracious and kind when you message her personally because you disagree with something she posted. I don't need to 100% agree with any of these three people to appreciate, and be inspired by, their thoughts. Great conversation!
I skimmed the comments. There seems to reason to believe that we should be concerned by the level of logic that we are being presented with. Milton Friedman, are you out there?
Commuting has become frankly stupid. It is weird that most people do not work in the same city that they live. Take a second and actually think about that. And it gets worse. Many people essentially commute for their entertainment as well. It's actually really strange, and really stupid. We have an infrastructure that basically forces us to spend huge amounts of time traveling between the places we live our lives. Europe started going the same way and then promptly decided they hated it. They reversed direction. Now it's very common in most European cities for almost everything you need, including your job, to be within walking distance, meaning less than a ten-minute walk. I spent my college years in a small college town. I originally assumed I needed to lease a car, but I found quickly that I had no need of one. Everything was either walking distance, or a short (5 minutes) bus trip away. Returning to the commuter lifestyle has felt never stopped feeling like a massive downgrade in quality of life.
When you get down to it, economics is just a game of tokens, as you create more tokens your relative weight in the economic system gets higher versus people with less tokens because the entire purpose of the game is to acquire the most tokens. It seems like this young gal doesn't understand that, as the biggest player in the game ... The government creates tokens the overall game is weighted towards the government and away from the individuals
Genz and Zenials need to prioritize what they want, I see people who work for me or the younger engineers complaining about money but have new clothes new phones expensive cars expensive phones motorcycles ordering Uber eats every night buying Starbucks every day etc…. Stop spending money on this craps and save money for a house or invest it’s not complicated. I know it’s expensive but I and others have little sympathy when we see this behavior
No idea if "chips act" is any better than flying over a city and just dumping money out of helicopter ... A lot of government tech incentive programs don't work well ... Some, like the transcontinental railroad, apparently worked...
People in the comments arguing over the merits, I am just over here thinking "this audio is some bullshit, someone screwed up the noise canceling..." :D
Sorry but I do not agree with Liz calling people low I.Q. thinking because they are unaware of allnthe finite details about the economy. Besides that, I really enjoyed the conversation.
It sounds like inflation wasn't caused by the pandemic but rather it was caused by the government response to the pandemic. Those are different things.
Well, she is basically defending Bidenomics!
Yes. The Federal Reserve should have shrunk the money supply, yes you heard me correctly.
Absolutely!.... My libertarian hair on the back of my neck bristled at this repeated assertion. The economy doesn't f****** know that there's a virus.. but the economy does respond Rationally to the monetary policy of too many dollars chasing too few goods = macro inflation.
@@UFCPR the president doesn't run the fed you
@@MBarberfan4life hot take
Kyla: “only problem is that it caused inflation”
Liz: “that’s a huge problem”
Kyla: “well sorta”
Bruh wut is this chick talking about, the cost of living has been a the number one problem for most Americans.
Scanlon's "Vibes" sound suspiciously like Keynes' "Animal Spirits." But I'll return to listening to what she has to say.
The pandemic didn't cause the economic slowdown. The governors' and presidents' "temporary" emergency regulations caused the economic slowdown.
When you allow Government to make exception to their chains "for emergencies only"…you'll find yourself with a LOT of "emergencies" on your hands.
The government didn't help. For the most part, people would still have voluntarily isolated. That being said, the Federal Reserve expanding the money supply was silly.
She doesn't think the government shutting down busimesses and printing a shit ton of money to pay people to do nothing has been a significant contributor to inflation? Really? Clueless!!
"Vibes are the economy" is just market confidence, people keep thinking they are inventing the wheel.
"Certain studies say" becomes a very unconvincing refrain when making a case for your position when you are unable to articulate how one of the papers you are citing comes to its conclusion
Yep
Kyla, needs to go deeper in economics, I will recommend her to invest in a good Phd program. Western Kentucky does not have good economics schools
Regarding inflation, Friedman solved the question, and this economist does not know about it?
It appears that inflation wasn't the main cause of the pandemic but rather a consequence of the government's response to it, highlighting the distinction between the two. It's quite disheartening to observe the multitude of challenges our economy is currently grappling with, including uncertainties, housing issues, adverse weather conditions, foreclosures, global shifts, and the lingering effects of the pandemic, all contributing to the existing instability. The slow economic growth, escalating inflation, and disruptions in trade require immediate attention from all sectors to restore stability and promote growth. How do you suggest we effectively tackle these critical issues?
Kyla's insights are truly enlightening, showcasing her brightness and curiosity, particularly in connecting with the younger generation and educating them on economic matters. The pandemic itself did not directly cause inflation; rather, the Federal Reserve's response to the pandemic played a significant role in its escalation. This distinction is crucial. If the Fed had not engaged in substantial money creation and if the federal government had not spent trillions it did not possess, we would not have witnessed the widespread price increases across our economy, which is indeed concerning. It's unsettling to witness the depreciation of the US dollar due to inflation while other currencies strengthen, creating a sense of uncertainty. Despite this, there remains some level of trust in the dollar's stability. I understand your apprehension about the potential devaluation of your $420,000 retirement savings. Exploring alternative strategies to safeguard your savings appears prudent. Have you considered any specific alternatives or plans to ensure the security of your retirement funds?
With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.
This is definitely considerable! Do you think you could suggest any professionals or advisors I can get on the phone with? I'm in dire need of proper portfolio allocation.
Just research the name Desiree Ruth Hoffman. You’d find necessary details to work with a correspondence to set up an appointment.
I'm grateful for your help. After looking up her name online and checking out her credentials, I must say, I'm really impressed. I reached out to her because I could really use all the help I can get. We've set up a call for further discussion.
I'd like her to go into detail about how money printing somehow for the first time in history is not the main driver of inflation
As someone who really likes the Austrian economic view, I think it's logically undeniable that monetary inflation tends to cause price inflation. If you have more money, but not more goods and services to spend the money on, there's no place to go but to have higher prices. I'm not sure, but I think the Federal Reserve relies on monetary inflation to *cause* an increase in goods and services, and thus "stimulate" the economy. But since there's no guarantee that more money WILL increase goods and services, they're mostly just redirecting existing resources into different goods and services, as well as causing price inflation and setting us up for inevitable bust cycle.
Just to be clear, I don't think that monetary inflation is the only way to cause price inflation. Just that it's the primary way it occurs in our society due to the existence of the Fed and its inflationary policies. So yeah, the stimulus checks probably did a lot to help cause the current round of price inflation, in addition to what the Fed was doing.
"Vibes" might influence how people react to the economy, but vibes can do nothing to change the goods, services, resources, and money actually available on the market. Perhaps it encourages people to tough it out through hard times and persevere longer, or something like that.
And speaking of vibes, Kyla really looks like she doesn't want to be there! ;-)
She is dismising Austrian Economics, she is another Modern Monerary Theorist!
The important thing is also assets can soak up a lot of inflation. Asset price inflation is absolutely insane right now.
"It's a research paper, peer reviewed" 😅 That's her epistemology?
I'm not surprised she is not a libertarian. She takes herself very seriously, yet her analysis are quite shallow. Nothing impressive at all.
The pandemic did NOT cause inflation.
The Federal Reserve’s response to the pandemic is what caused it. That distinction matters. If the Fed had not engaged in massive money creation and had the federal government not spent trillions it did not have we would not have had the increase in prices across the economy.
Inflation is ALWAYS a function of creating more money than the increase in goods and services.
'Vibes' are just a modern way of saying 'animal spirits'.
Yeah, exactly. I left the same comment.
Inflation is a monetary phenomenon. Inflation does not equal changes in price levels. It's a measure of the lack of purchasing power of the currency. Prices going up and down due to market forces is not inflation - that's money and markets providing price signals. Inflation is a monetary issue because it distorts the pricing signals. It should be measured in changes to M2, as the changes in M2 CAN and DO predict the direction of future inflation.
She is dismising your argument!
@@UFCPR she just repeats "studies" to avoid acknowledging the obvious.
I keep trying to explain this exact thing to people.
Prices aren't rising, your money is losing purchasing power because the money supply was inflated.
Do you realize you just contradicted yourself?
@@authenticallysuperficial9874 unless you point out the contradiction, you've made no point. Prices move for various reasons, but the one that institutes theft (and not market forces) is monetary inflation. try a little more next time.
The answer to that question is very simple. There are 2 sorts of people in society. The productive people and the looters. Whats wrong with the economy is that the looters are in charge and they can print the money that the rest of us have to work for.
In brief: Central planning, fiat currency.
Well, she is basically defending central planning.
Lol I turned it off after she completely dismisses monetary policy's role in historic inflation. I can't take her seriously after that flippant response.
I like Kyla, but discussing labor market data and not knowing that the birth/death model is about businesses, not people, is very telling. She needs a better grasp of this information.
The U.S. quadrupled the money supply in very short order. We ALSO did something never attempted previously; sending money DIRECTLY to consumers. More money and dwindling supply of goods and services is basic supply/demand relationship. Seems reasonably simple to me.
Bush sent money directly to people.
I get the distinct feeling that she doesn't actually know what she is talking about.
"Big food companies are seeing their highest profits in two decades." How much of that is inflation though? You cannot look at the raw numbers and think they're making record profits. You have to look at the profit margins. From what I saw the margins are around 1.5% That's not much of a gouge.
No one wants to hear that the party is over, that taxes have to go up, or that spending on entitlements must be reduced. No politician wants to say that the Federal Reserve is a cartel of banks. They'd rather blame greed or foreigners or something that is marginally to blame at best.
Tyson in Q1 22 showed an increase in operating profit margin from 13.2% to 19.1%. That's over a 40% increase in relative operating profit margin. The quarter ending Jan 1, 22 Tyson's beef had increased in price by 31.7%. Average increase for all their products was 19.6%.
@@bobbyj731 I was speaking on grocery stores (Kroger, Ingles, Wal-Mart, and such). I wouldn't be surprised by Tyson being bad actors.
no no no. this girl is wildly biased. she deleted a comment of mine on one of her IG posts on pretty obvious holes in an argument she was making.
Maybe your “vibes” were putting her channel into a recession 😂😂😂
Maybe you’re biased
@@timgwallis I am biased against big government policies, which she likes to promote. If you're trying to be a public intellectual, you should make the case for your point, not ignore or delete comments
Demand without supply increases prices. Demand was artificially bumped up by stimulus checks as production was choked off by Covid shutdowns. (Remember toilet paper prices in 2020?) Oil production was also hurt by pipeline construction shutdowns, drilling permit halts and refinery growth restrictions. Also, electricity prices are up because of increased use of expensive "renewable" sources.
All this increases costs which then show up in consumer prices.
Anyone who compares fed debt to borrowing to start a business needs remedial economic lesson. Government creates zero wealth. It just takes from one group and gives to another. A business is all about creating new wealth and not shuffling deck chairs.
No wonder our economy is dogshit, Kyla is considered an economist smh.
Here the issue is that they decided to have Kyla. She is fun and good for tt, but still too young to see beyond headlines, not that being young is an issue on itself, but she will get there.
David Stockman, Bob Murphy, Per Bylund, Peter St Onge, Tom Woods, Larry Lepard, Brian Wesbury would destroy her in a debate on the inflation.
The post-covid inflation was brought about by the massive 2020 FED expansion of of the money supply and the FEDs failure to withdraw this excess money as we began moving out of the recession. This is as simple to understand as the equation of exchange; M x V = P x Q.
"Vibes" aka placeholder for half a dozen words that educated people use
God, vibes is the least objective metric to base the outlook of an economy on. people in their everyday lives know less about their world than the charts.
Vibes is awesome if you are a journalist and you want a low effort way to describe and move the economy.
Vibes is the gen z version of animal spirits.
A peer reviewed paper is not enough to support economic theory.
This economist sounds as a keynesian when she is willing to give a chance to housing subsidies, how about removing the excessive regulation in most cities? How about letting innovation in manufactured homes take care of housing demand? How about rethink our dependency on lumber to built?
I was surprised when she said she was from Kentucky. Her way of speaking reminds me very much of my cousins from Minnesota.
Her “accent” is really strange
Is it possible for society to stop using the word 'vibes'?
Government spending and the welfare state. It's always Government spending and the welfare state. I encourage everyone to watch Thomas Sowell's countless videos talking about how governments and their regulations and spending often cause more calamity than the original market downturn did itself.
You’re ideologically convinced of this because of economic philosophers but you ignore the economic researchers doing actually science
This is the perfect guest for Reason- uninformed and irrelevant dressed up in thin veneer of libertarian cliches
There was the comment about how housing spiked as a wealth generator since the 1980s and why. It's because it was incentivised/subsidsed by the government and markets, by cheaper and cheaper borrowing costs much in the same way higher education has been. All the while, "low" inflation drove rates even lower allowing the government to borrow and print more money. During these decades (before the recent bout of official inflation) we were told there was little to no inflation, but I'd argue that there was massive inflation .... concentrated in housing, higher education and healthcare (the latter subsidized by Medicare/Medicaid/Obamacare). All this talk about how the government needs to provide cheaper housing will just lead to more housing inflation. If Gen Z and younger Millennials truly want cheaper housing, then move to Pittsburgh, Detroit, or pretty much anywhere in the Midwest. Sorry, we can't all live in New York, San Francisco, or Austin, but I'm sure today's politicians will convince you it's your right to affordable penthouses in Manhattan.
Imported labor on top of expensive housing does not make for more affordability to have the next generation.
The obvious primary cause of inflation was the increase in the money supply, plain and simple. M2 increased 40% from Feb 2020 to Feb 2022. The normal increase in M2 during that 2 year period would have been 10%, 1/4th what it actually was. There was some exacerbation caused by some supply chain issues but those were minor. The other issue was that demand for goods and services was way down the first half of that period. So as we came out of the pandemic demand skyrocketed compared to what it was the year before and that's when inflation really took off.
Keep in mind that the government, especially when they're Democrats, are always eager to blame anyone else but themselves. The fact that Harris is somehow intimating that its b/c of price gouging, is ludicrous and insulting to citizens.
Actually not simple
@@timgwallisYou create money that chases the same goods, inflation happens. It is really that simple.
@@dogg-paws you have the same money chancing fewer goods due to supply chain issues, inflation happens. You have demand preferences shift you have the same money redirected to chase the same supply, inflation happens. You have corporations raising prices on the same goods, inflation happens. And yes newly created money chasing the same goods can create inflation, but it’s not the only factor and it doesn’t guarantee inflation. It’s complicated, not simple. If you want to trick yourself into thinking it’s simple to comply with your ideological bias, then whatever.
@@timgwallis And yet there was no sign of massive shortages, barring a few products like baby formula. The economy did not show any significant sign of "fewer goods" like you claimed; nothing you described actually happened the way you said it did. This points out the increase in money supply as being the primary cause, just as @jderoma4382 says.
You're a deceiver, just like Kyla Scanlon is. Repent of your errors.
If you can work a job from home, it's also a job that is vulnerable to outsourcing, whether to a lower cost of living region of the U.S. or internationally. Wish it wasn't true, yet it is.
Im sorry, but this guest doesnt seem intelligent. I expect more from Reason.
The Federal Reserve should not have expanded the money supply, at least by as much as they did. It's not a coincidence that Switzerland only experienced a little inflation, when their central bank inflated the least of all the central banks.
This is not a smart or experienced guest. Very disappointing.
Monetary policy, unfettered by suicidal fiscal behavior, would have had inflation down to a reasonable level by late 2023.
more and more govt. spending, more debt, more slow growth with stagflation. Wow, how did I figure that out?
Insurance is only a viable plan if most of the people buying the insurance never file a claim. As soon as you are trying to use the insurance model for something that everyone is experiencing it cannot be solvent. So, I think they are quite right, that people who want to live in high-risk areas will have to either pay massive premiums or simply plan financially to handle exigencies themselves.
Wait this is the "vibe-cession" lady. Which one is it?
If you're pretty you don't have to be smart.
Pretty privilege.
This girl was a really poor interview. Not much understanding of ANY of the metrics being used in research that she quotes. Her followers might as well just use Google
Seriously
One of your more fun interviews. Thanks for posting!
Lol. Economist? Raising prices due to rising costs in production and labour is not a price 'hike', it's not even a price increase when the underlying currency has been devalued through inflationary money printing.
Some of the stuff she is saying I’m not sure I agree with. The home insurance stuff she said, makes a lot of sense but the grocery store examples. I’m not really sure she understand how the business works there outside of a general perspective. For example one of the reason Kroger wants the deal because they want to use economy of scale to bring down the cost, especially as since their employees are unionized. And even with the manufacturer argument, Walmart uses how big they are to influence lower prices for them, and which they pass on to there customers.
This Kyla is awesome I watch a lot of economists my two favs are Lyn Alden and now Kyla "?" So smart could pick their brains forever
If you had taken the time to review Campbell Soup Company's quarterly financial results, you would see that your claim about them driving inflation by opportunistically hiking prices makes absolutely no sense.
No everything is fine! Also, it needs to be rescued, by the same people that said it's fine 😊
I want my 1:15:29 back. I’d rather listen to a 3 yr old explain why their imaginary friend told them to paint their room with toothpaste.
This woman is clearly a biased actor and has no understanding of basic supply and demand. Why even interview this person? The downfall of Reason continues at breakneck speed.
Yea when she said that the increase in money supply wasn’t what caused inflation, it was “vibes” I quit listening.
@@jeffa7671 it was the PLANdemic
Just asking questions title reminds me of South Parks school election episode 😅
Birth Death Model is not "less people are dying" miss Kayla. It is new business creation/failing. So.. vibe wise more businesses are dying than ever..FYI.
I only heard her talking about bad actors. Definitions could be important. Then she is a politician.
The birth death model isn't about people dying it's about business formation and collapse. When the economy turns either from positive to negative or negative to positive the birth/death model either overestimates or underestimates new job formation.
The problem with social sciences is that "studies" show all kinds of things that turn out to be untrue. In the true physical sciences, nobody says "studies show". If it's reality, you can prove it to yourself. For example, kids in physics class do labs to show them that the laws of gravitation are real and independent of anyone's bias. And while we have liberal and conservative economists, physicists are never described as such.
Comments did not disappoint. Now if I somehow could get those six minutes of my life back...
Kyla needs to learn Milton Friedman
Leftiod econ nonsense.
Really like Kyla and everything she has to say. She is obviously bright and curious and I think she is really connecting with the younger folks and educating them where there seems to be a lack of economic sensibility. I gave my 20 something YO daughter her latest book. Always enjoy Zach and Liz.
Same here. I've been following Kyla from early on, and I can confirm from my own experience she is also very gracious and kind when you message her personally because you disagree with something she posted. I don't need to 100% agree with any of these three people to appreciate, and be inspired by, their thoughts. Great conversation!
All Kyla did was gaslight everyone about the economy. There's nothing "bright" about her.
@@dogg-paws I don’t think you know what gaslighting even is.
Vibes, how conveniently unscientific.
Vibes / also known as consumer confidence
I skimmed the comments.
There seems to reason to believe that we should be concerned by the level of logic that we are being presented with.
Milton Friedman, are you out there?
Commuting has become frankly stupid. It is weird that most people do not work in the same city that they live. Take a second and actually think about that. And it gets worse. Many people essentially commute for their entertainment as well. It's actually really strange, and really stupid. We have an infrastructure that basically forces us to spend huge amounts of time traveling between the places we live our lives. Europe started going the same way and then promptly decided they hated it. They reversed direction. Now it's very common in most European cities for almost everything you need, including your job, to be within walking distance, meaning less than a ten-minute walk.
I spent my college years in a small college town. I originally assumed I needed to lease a car, but I found quickly that I had no need of one. Everything was either walking distance, or a short (5 minutes) bus trip away. Returning to the commuter lifestyle has felt never stopped feeling like a massive downgrade in quality of life.
lol what a leftist.
If central planning ALWAYS fails, then how well will the Fed do?
When you get down to it, economics is just a game of tokens, as you create more tokens your relative weight in the economic system gets higher versus people with less tokens because the entire purpose of the game is to acquire the most tokens. It seems like this young gal doesn't understand that, as the biggest player in the game ... The government creates tokens the overall game is weighted towards the government and away from the individuals
Genz and Zenials need to prioritize what they want, I see people who work for me or the younger engineers complaining about money but have new clothes new phones expensive cars expensive phones motorcycles ordering Uber eats every night buying Starbucks every day etc…. Stop spending money on this craps and save money for a house or invest it’s not complicated. I know it’s expensive but I and others have little sympathy when we see this behavior
2 grand 3 years ago is not the driver of inflation. Particularly compared to business price hikes
Liz seems like a cold fish
"Data shows" oh it does, could you give a general explanation?
Vibes aka speculation
No idea if "chips act" is any better than flying over a city and just dumping money out of helicopter ... A lot of government tech incentive programs don't work well ... Some, like the transcontinental railroad, apparently worked...
I don’t see the Harvard study on upward mobility linked below and I could not find it using a cursory browser search.
People in the comments arguing over the merits, I am just over here thinking "this audio is some bullshit, someone screwed up the noise canceling..." :D
We know damn well oligopolies are often as anti competitive as monopolies. And grocery stores like ISPs are monopolies or near monopolies regionally.
Sorry but I do not agree with Liz calling people low I.Q. thinking because they are unaware of allnthe finite details about the economy.
Besides that, I really enjoyed the conversation.
AI
Kyla seems to have been very testosterone influenced at some point in the past.