why wages don't follow inflation.
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- Опубліковано 5 лис 2021
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🔵 • People aren't returnin...
🔵 • People are tired of de...
🔵 • The REAL reason employ...
🔵 • THERE IS NO INFLATION ...
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Iam sorry but mesuring the inflation in cheese is the most American thing ive ever heard.
In the UK, we measure it in Freddos.
Gummint cheeze, I hope.
Cheese getting cheaper is a sign of inflation because it's a luxury product. Poor people can't afford the luxury of cheese, thus fewer customers for cheese which leads to lower price on cheese.
It's really sneaky to calcuatate inflation by food because food is subsidized by the government because if food get's to expensive that's when revolution happens.
wait till they start measuring cheese in inflations.
White House be like: “As you can clearly see from the price of MacBooks, there is currently no inflation.”
I never realized how inflation hits different businesses differently. You make an excellent point! We will only be a better country when we make it profitable repairing appliances, phones, laptops and even TVs etc. for repair services instead of replacing everything and contributing to landfills and environmental pollution.
I agree. The government should give tax breaks and subsidize businesses that repair things. Repairing and restoration will never be profitable on its own
Oh please, there's no such thing as "inflation". Stop expecting the government to pick up tab for your own laziness and inefficiencies.
@@reez1728 you're not the brightest one are you
@@coocoo112 Bums like you expect big daddy government to wave the magic wand and get rid of "inflation". Why don't you stand in line for your booster shot, maybe that'll help with inflation.
@@reez1728 Is it my job to control inflation you idiot. And how the fuck did you manage to bring vaccines in this conversation will be a mystery forever. You are actually slow lol
The funny part about that “cheese is down 1%” example from the white house is because there was a wild oversupply of milk caused by the pandemic and since cheese consumption is rising unlike milk, the farmers used their milk for cheese production increasing supply. Meanwhile all the dairy farmers are feeling really good about it.
We must return to simpler times and have currency backed by cheese
@@lililililililili8667 would technically be better than money backed by broken promises
@@firekram and tastier as well.
Milk is extremely heavily regulated in the us, and indirectly so is cheese produced in the us. I wouldn't be shocked if we have had surpluses for decades as a result of government intervention.
@@jeffshackleford3152 And overall something that would nourish the nation properly
Inflation is definitely hard on everyone and in different ways. There's nothing like watching the nest egg you've been saving since before graduation just dwindle in value.
Inflation is deliberately designed to discourage saving, and instead encourage spending and investing. If you had a nest egg and just stuck it in a savings account, well, that is a hard lesson learned.
Bad for savers and lenders, but GOOD for borrowers, who can now pay back already agreed upon amounts of borrowed wealth with less wealth.
@@mandrid Yes. Inflation shifts people away from long term gratification to short term gratification. Inflation and crime are toxic short term gratification. Where as working and saving are long term gratification. Society should as much as possible encourage long term gratification by discouraging crime and inflation - both of which are at highs of recent. We need to go back to locking up criminals as much as possible and discouraging inflation. Bring back the culture of long term gratification. Work hard and honest, and remove the toxic culture of the short term mindset.
This is a psychological argument. Psychologists annihilated short term gratification. I took psychology classes and they constantly ripped on it with that Marshmallow study, and for good reason.
yeah basicly inflation was invented to make you spend your money on things or stocks so the value wouldn't vanish. That's a huge reason why realistate is so expensive now. Many people would be happy to just keep there money in a bank if it wasn't for inflation.
@@mandrid People really don't understand it. My mother is saving everything in the bank. Well, I'm putting everything in the worldwide MCSI ETF. If people really want to hold cash, buy Berkshire Hathaway - they sit on nearly $150 billion dollar of it so you own a share of that, but they also have a nice operating profit that compensates for inflation. Or buy bonds with a decent interest.
People complaining about inflation are people who don't understand financial markets. At all.
Literally just a few days ago I had the notion in my head that the sole reason that neverending inflation is a thing, is because debt DEPENDS on it, and we are a deeply-entrenched debt and credit based economy. You are persona non grata in this country if you don't have any kind of a credit history whatsoever. As a business, you can't get up off the ground without going into some kind of debt. And then the value that your debt somehow adds to the GDP, because of what you've paid in interest to your lenders (the creditors), NECESSITATES that more money be printed, which devalues the currency in the process of it all.
If you stop inflation, you jam the cogs of debt.
This has the knock-on effects of benefiting those who make all of their income through any kind of investments, be it property, stocks, bonds, whatever. Because the returns on those investments typically always outpace inflation. Stable, safe investments like putting your money in a savings account or a piggy bank? Ha. Good luck. Your dollars are immediately losing value the moment they get saved because of inflation. Your savings are forever shrinking and worth less and less and less and less year on year on year on year.
Inflation is the fucking roots of this festering cesspit of unmaintainable, debt-fueled economic growth.
You nailed it, the root cause.
Yay authopathology of money
Joo cabal the fed is pure evil
Our founding fathers did deal with inflation and tracked it down to fiat currency. That's why the constitution says the states can only use silver and gold as legal tender and the National government may only COIN money, not print it. Blame Congress of 1913 and the "Federal Reserve".
@Lassi Kinnunen 81 Deflation has its own issues, but the cost of digging up gold sets a price for gold. It is like how the price of mining new blocks somewhat sets the minimum value of bitcoin. The problem with fiat paper money is that it eventually finds its true value of zero. Gold and silver don't have a value floor of zero.
Welp imagine going to the bank to withdraw money and being told "Sorry we ran out of gold".
@@luizcastro5246 That's called a bank run, and it means the bank isn't solvent. Also a problem with paper money, but one that can be papered over with more inflationary printing.
@@IMarvinTPA The cost of digging up gold has been increasing steadily and rapidly, only offset by the fact that demand isn't as strong as it used to be. If you'd be running a gold-based economy the prices would go through the roof.
And that is not even mentioning all the other problems the economy would quickly run in to. There's a reason no country uses a gold standard anymore. It's just not feasible, unless you really like the type of crisis we had in the 1930's.
Even if we switched to gold tomorrow, the banks would just issue promissory notes to create liquidity and we'd end up with derivatives and inflation all over again.
I've gained an actual raise once by quitting and moving on. I had to move away from a dishwashing job cause my "raise" was going from $8.50 plus "tips" (which was literally like $10 per 2 weeks, hardly an actual tip) up to $9. That isn't gonna help me, and dishwashing is actually pretty hard work. Simple, but stressful when things are busy. I moved onto a thrift store that paid more. They fired me because they expected you to be 1.6 people while being understaffed. They don't bring any value back into the world and deserve to go out of business.
I got a raise in the form of job quality now as an IT. I actually have platforming from it, and now I'm only paid slightly less than I was at the thrift store. The job is actually enjoyable and teaches me a bunch.
I quit a dishwashing job for a similar reason. I quit it the same way Tony Montana did in Scarface. I had found a better day job by then, and I had landed a theater role performance audition for evenings and weekends.
@@princessmarlena1359 I remember that scene... man that was rough, they looked so miserable
@@kwazhims3lf Tony: “¡Coño! F*!” Yeah washing dishes is pretty back breaking job. Can be real gross, too.
Most companies are like thrift store, understaffed and mostly redundant.
What you described is actually another mechanism of inflation, just like the "worker shortage". Firms which cannot afford to belly out these periods of higher costs but similar revenues will be forced to close, and same for those which cannot afford the newer price of work. Once enough firms close, the remaining market will be able to raise prices with less competition.
It's almost like those with the levers of power want to destroy all the small businesses that sprang up under Trump and led to economic boom - to punish them and reconsolidate that market power back in the "proper" hands. Through the exact mechanism you described.
@@kitethetwinblade In that case they wouldn't be pushing social spending bills, because those will strengthen mostly local businesses.
@@kitethetwinblade Do you have any data to back up the existence of these "small businesses that sprang up under Trump" or are you completely pulling that out of your ass?
@@TheRCish
He's pulling it out of his ass.
Republicans vote for Right to Work bills and other shit that benefits the top dogs and hollows out the new guys.
The only reason "new businesses" sprang up under Trump, is because covid meant that unemployment jumped from ~4% to 15%. That's a LOT of people who had to scramble to keep food on the table.
Hence, a lot of "new businesses" popped up.
But to present that as a positive thing **really** does justice to the saying "polishing a turd" (and in this case selling it as exclusive chocolate, lol).
(note to butthurt conservatives reading this: Democrats, of course, write more regulation, which probably started from a well-meaning place, but then gets watered down to even pass, and then gets horribly screwed up by whatever low-level clerk has to actually implement it, who quickly finds out that it clashes hard for day-to-day practicalities when placed in context with all the other laws and regulations already on the books. If that horrible sentence was too horrible for you: other guys bad too, just differently😉)
StCreed Are you talking about Biden’s trillion dollar “infrastructure” bill? That is nothing but pork, to pay off those who put him in office. It has absolutely nothing to do with spending tax payer money on helping small businesses.
Watching a Louis Rossmann video is comforting to know that at least some people out there can understand the world from a realistic view. Thank you for being a grounded, intelligent individual who is able to coherently share how the world *actually* works without the finger wagging.
Yeah. He’s neither left nor right. Pure common sense which ain’t all that common.
Seeing that he seems to be the closest you can be to an ethical business owner, its nice to see he's successful. Its a good example
Are you accusing public media brainwashing people?
While I like to listen what louis says, a lot of his takes come off as extremely milquetoast or sometimes uninformed criticism/maintaining neoliberal modes of production.
He is also wrong! Inflation is only evil if you are not the USA. Yet if your currency is the actuall world reserve currency and world trade currency , printing money allows the USA basically buy shit from other countries for free! That's why the USA is also "World Import Champion" ! The USA imports A LOT for free!
Someone should have told Mr. Trump back then, that the USA trade imbalance is not the USA beeing screwed but the USA taxing the world!
Obviously it's not great for local business of the USA to have foreign imports, but in a world economy, American companies only need to avoid to be the first in the supply chain and then they too profit from cheap (that are virtually free on a national economic scope) imports that make the base of the products that they manufacture for the consumer or to be part in other manufactured goods. As long as you are in the middle or the end of the supply chain even the US-companies profit from the trade imbalance.
Should the Dollar ever stop beeing the world currency then the USA, might need to approach economics and trade differently ...also the whole monetary and financial politics might then need to be completely rethought.
I do business in the agriculture industry (selling pesticides, fertilizers, small farming tools, supplying farming items to smaller retails, etc) this year the prices of EVERYTHING went up. For example because the demand of Glyphosate increased BUT the production of it decreased because of covid, the price increased exponentially higher (right now roughly almost 200% of the price in 2020). In this business we have razor thin profit margin, below 3% approx. So we always try to make more sales. When the price was low it was easy. Now when the price went up drastically, we would either have to earn even sharper profit margin or the business could potentially close down. Even basic necessities like cooking oil or groceries have risen on average 40-50% compared to last year.
When they calculate the inflation rate, that number you see doesn’t include food prices.
@@TheBooban or housing, it’s all bullshit
@@chaostheory16 Or we could stop trying to find stop-gap solutions and realize that the entire system is in need of an overhaul, and this overhall basically boils down to large corporations paying people more and not letting all the resources flow to the top to sit in the bank accounts of billionaires and the wealthy and powerful. America seriously needs to divorce it's unhealthy obsession with idolizing rich businessmen and wake up to the reality that your boss is not your friend, and that your employer generally only gives a fuck about you as much as they are required to do so by law. People like Louis who actually try to do right by their employees are the exception, not the norm. Most bosses and managers are borderline sociopaths who don't care how many people they fuck over so long as they get paid at the end of the day. And as such we need to ensure that people have the tools to stand up and defend themselves from their employers if need be, and demand fair treatment and reasonable pay by modern standards.
@@Fraggr92 _Or we could stop trying to find stop-gap solutions and realize that the entire system is in need of an overhaul, and this overhall basically boils down to large corporations paying people more and not letting all the resources flow to the top to sit in the bank accounts of billionaires and the wealthy and powerful._
Alternatively, we could stop allowing governments to stop printing billions in new currency, which is what is driving inflation.
We could also institute laws which SEVERELY punish ALL forms of corruption by politicians, no matter how small. Even the tiniest influence peddling or under-the-table payment accepted by a politician? Instant removal from office, forfeiture of all public salary, and a long prison sentence with no parole.
Nancy Pelosi has enriched herself enormously via insider trader -- and she is LEGALLY permitted to do it under the current rules.
That sort of thing is what is at the heart of the current financial mess. (And this doesn't even touch upon the corruption of the pharmaceutical companies using their money to get officials to approve their products despite the clear safety issues.)
The problem, at its core, is massive corruption at every level of government.
@@Fraggr92 The problem is not the corporations, but incompetent governments and central banks... Incompetent politicians who don't understand economy nearly as well as they should when making policy decisions... And central banks have extremely reckless, FED being prime example. They printed 40% of the entire existing US dollar supply last year, this is nuts... It was bound to create big inflationary pressure.
I think this might be 11 minutes of Louis realising he's eventually asymptoting out of business...
what?
Asymptoting?
@@helenhoward5346 asymptote is a line, which indicates how a function "behaves" towards infinity.
So sad. Unfortunately he speaks for most small business owners.
Roughly speaking, writing your own obituary. Sad, for sure. While their is still value in what remains, a smaller scale for the right person to take over and move on to greener pastures.
All the easy money is gone. ( sigh)
I literally emailed my ASM yesterday at Lowe’s demanding a wage increase, as I can’t live off of $12.78 an hour.
Not expecting much, but at the same time, I’m having hopes, because these the same people that are complaining about not finding enough people especially overnight, or people that come and go less than 1 pay check worth of time. So I’m hoping they’ll look at it and either increase my and everyone else’s pay, or that they’ll fire me. Their fucking choice.
Good luck, I hope you get a raise!
I hope you won't get fired... it's so unfortunate that, in our world today, the best case scenario is that they just ignore you. I hate having a government that has this much hatred for its own people, we're nothing but chattle to them
I walked out of my Night Ops job at Lowes like 2 weeks ago. We are running under HALF the staff we had last year and a THIRD of Lowes own recommendations based on truck sizes. They are hiring 3rd shift stockers for 13/hr offering NO night pay differential, throwing them on machinery. That job NEEDS to pay 15/hr minimum or they wont have a night shift. Not to mention i was run 40+ hours a week for a year and never allowed to go Full-Time. The Night Ops ASM posted the position for me to apply and the store manager personally pulled it down less than an hour later. Go work at Target or TJ Maxx.
Ill add if you are a hard worker you can almost certainly get more out of them. 12.78 is pretty much the bottom of that paygrade/seasonal new hire pay.
@@BrutallyHonestRevs Sad truth is that Target is considered a pretty good place compared to other big boxes. Lowes has good Policy technically but they just eat people alive plus half the product in the store is 70+lbs.
"I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." - Thomas Jefferson
What tribe owns the federal reserve and national banks whom he was speaking of?
Uncle Adolf spoke on this.
@@NukeCloudstalker It's always the tiny hat gang.
They want people to believe they're getting paid more, but everything has gone up exponentially in price. Way more than the percentage of a wage increase.
sign for mc d's 11-14 an hour here for part-time. good luck getting good hours 😂
"exponentially" ?
@@tchrisou812 he clearly doesn't know what exponential means lmao
@@tchrisou812 I doubt he literally means "exponentially." It's probably just hyperbole.
"...not a sexy perspective"
**Ears perk up**
The honest, quality content I'm here for.
Your candor and willingness to get intellectually messy impresses. Keep up the great work.
Exactly. I might not always see things the same way as Louis, but I damn sure respect his stances and he explains why his stances are what they are.
Inflation is when they who control the money supply print more money. This is equivalent of stealing from everybody who has money in their account. It's also a refined method of stealing because the thief doesn't usually get into trouble. If Gov't didn't print more money all the time and by this makes money already in circulation worth less, our money would increase its buying power because we all are getting better at producing more for less. More goods would then compete with the same amount of money, thus prices would steadily fall exactly as an effect of we're getting more effective. In fact, without the extra money supply we are getting twice as rich every twenty years. We are still getting richer every twenty years, but Gov't takes most of it.
Just remember that you're evil too. You maybe don't steal, but you support the thief by your vote - give the thief legitimacy to its bad behavior. Somehow you think the services Gov't provide comes with better quality and lower price than the private counterpart that would exist if we didn't allow legalized coercion and theft. You are indoctrinated to believe that ex. monopoly of police is better than the counterpart that would exist if we didn't allow Gov't to steal - didn't allow Gov't to exist.
The whole world is ran by crooks - thanks to you. You're just too stupid - minimally thoughtful to realize.
This problem will probably never be solved before humans evolve into a better species. The average intelligence among humans seam not to be able to increase to such a level where vast majority don't want a society based on legalized coercion and theft. I think nature is fair. You don't deserve a better society - you're simply too gullible to say no til evil. You deserve all the evil that knocks on your door. Only very few of you do not support Crook Gov't. You're in a microscopic minority, less than one in ten thousands. You are victims of the evil of the compact majority. Many different arguments are being pushed to give an illusion of legitimacy to central government, but they all fail reason. They are usually based on two different logical crimes: Appeal To Majority and Appeal To Authority. The vast majority are too dumb to see through invalid reasoning. They are psychopaths without imagination enough to imagine a society and a life without legalized coercion and theft. Their stupidity is obvious and humans will be wiped out just like Neanderthals when a new species evolve and see humans evil error in how to rule their society. Isn't it a mind blowing irony that they who have taken upon themselves to protect against thieves are living off a salary that comes from legalized theft?! Why are you so helplessly stupid?
@@UA-cam_Stole_My_Handle_Too the creation of the federal reserve and gold standard was the day America got taken hostage and robbed blind.. it’s been that way for over 100 years now with no sign it’s going to stop until the dollar finally crashes and people wake up and have to pay 50$ for a loaf of bread
@@UA-cam_Stole_My_Handle_Too It's important to limit inflation, but a little inflation, say 1%, is much better than deflation. This is why governments should normally be expected to keep inflation around this level, rather than trying to get closer to zero inflation, which risks crossing into deflation.
As you say, without any money being printed, the money you've just got sitting around increases in value, not interest, not by investment in any industry, just by existing. This means people don't spend money, or absolutely minimise spending, which means money doesn't circulate, which means your economy doesn't exist.
"inflation"
**Ears perk up**
In belgium, by law, all wages have to go up each years on par with Inflation (or close to it, it's called 'the index')
This is not considered a raise but a preservation of buying power for employees and is mandatory implented across the board for high and low salaries alike.
That makes sense and is considered socialism by these dumb assholes. They are smart enough to parrot and maybe even understand a problem, but can't even begin to produce a considerate solution.
@@matttran7161 "That makes sense and is considered socialism by these dumb assholes." Think your talking about yourself.
@@sebastianlucas704 love the "no u" response very insightful
@@Miss_Murph Just matching your insight fullness.
@@sebastianlucas704 fucken oath mate two in a row legend
My $0.02,
I’m a retired nurse. I live off my stock portfolio. The top 1% are not seeing inflation because their investment income has risen more than the cost of goods. My dividend income rose as such;
2019: ~$85,000
2020: ~$100,000
2021: ~$120,000
I’m not rich. Just saved and invested and got a little lucky. I imagine the people bragging about cheese don’t realize nor care what the actual cost of living means for an average person.
I have more disposable income now than I did before the pandemic. That’s a massive failure of government.
Right, the wealthy don't have as much of an issue because their wealth is in real estate and more non liquid assets like stocks that ride on top of inflation. Smart, but not the majority of Americans.
@Jory Folker dude you are blessed as fuck. I can barely pay my next rent
Brandon: "Wages are up a whopping 10%!"
Any sane human being: "Yeah, but cost of living is up 30%..."
Hey according to Brandon he was vice president for 36 years, I think the man knows what he's talking about . . .🤣
No it's not. Didn't you listen to the government. Inflation is only a bit over 5%.
Oh... wait. What do you mean food, gas, and housing aren't included in the CPI?
FJB.
🤔🤔 ... Book ... " What Has Government Done to Our Money? " ... !!!
🤔🤔 ... The word Inflation has been distorted ... Inflation occurs when the Government Increases the Monetary Base ... when the Government Inflates the Monetary Base ... when the Government Prints Money ... !!!
🤔🤔 ... When the Government Prints Money and Injects it into the Economy it Creates Several Economic Distortions ... Several Harmful Effects ... public spending ... zombie companies ... production and investment disruptions ... detachment of prices and wages ... currency devaluation ... loss of purchasing power ... price increase cycles ... etc ... !!!
@@HeWhoIsWhoHeIs not the administration, the entire globalist regime
@@EmoDKTsuchiya That's fair.
My biggest gripe: the government flips a switch and inflates the currency
But it takes me months or years to negotiate a raise.
Not only that, the government cheats society. I have to work hours upon hours to make money, the government literally does nothing of value and just prints the cash. Hell, today they just add zeros to a bank account, they don’t even have to print anything to paper. I have to go to work, government hits zero on a keyboard. This system is garbage and was made to be cheated only by them.
It’s bullshit that I’ll get sent to prison for making my own dollars while the US government has infinite supply of blank checks.
@@Mr_Bones. Basically what people were afraid of when the idea of exchanging valuable metal currencies with worthless paper notes was first proposed. The people predicted it, but no one upstairs cared. No surprise.
@@Mr_Bones. exactly what happens when your government is an extension and representative of your corporations and not the people
-except for themselves.
Our problem is government. Government in any form is tyrannical.
Inflation always effects the poorest in society the most and it hits the small businesses hardest. That the government is actively creating inflation should say something about what they care about. If you're pushing inflation you don't care about the poor and you actively dislike people saving money since inflation constantly destroys the value of those savings.
BUT the politicians get a raise when they raise minimum wage. Everyone else gets a pay cut (money is worth less)from the immediate inflation. Politicians get a raise because wages go up and they get a percentage. on spending and wage taxes and payroll taxes.
one of the strong reasons I vote republican. Even though I am more a Libertarian
Well when inflation favors borrowers and hurt lenders and savers, yeah you can tell who's side the government is on: theirs, the BORROWERS.
If you own lots of assets like stocks and real estate, you care less about inflation since these go up faster than other things. Notice how the Dow Jones industrial average is announced daily on the news? For the plebes who don't own stocks (most people) it has nothing to do with them.
They don't care because guess what, next year all the poors will go out for the Democrats once again. As they do every single election cycle.
My machining business has seen steel prices go up considerably. As it's across the board though, I can raise the price accordingly because no shop in its right mind is going to eat that cost. Shop rate on the other hand is staying the same, so we're losing money there.
Hi!
Can you explain what shop rate means? :)
@@MrNicoJac Pretty much what I charge per hour. Counting for things like wages, tooling costs, and maintenance.
@@GeneralChangOfDanang
Thanks for the reply!
So, if I understand correctly, you're not losing money on raw materials (steel), but you are losing money on orders etc for customers?
I don't know much about how a business is actually run IRL, but that sounds rough man!
Hope it works out for you and yours :)
Steel is expensive because of the stupid trade war & tariffs
@@rabbischlomobengoldbergstein
And also covid, right?
Like, there was less production, and now there's a shortage of cargo space on shipping
(not instead of the trade war, but additionally)
Economists measure purchasing power with the Big Mac Index.
Louis is hitting us with the Big Macbook Index.
Inflation is effectively a transfer of wealth from the working class to the government and the banks, as they spend the money as they're created, before the higher prices from inflation kick in. Meanwhile the working class will get the increased prices and have their savings drained away.
Nope. Its a transfer of wealth from lenders to borrowers and from savers to the economy.
@@snap-off5383 That is one piece of the equation.
There is a lot more to it than an absolute black and white argument.
Anyone holding cash will see the value dwindling during inflation. We still have a very low inflation rate, historically speaking, it used to be much higher and the worry is (and has been for a time) that it becomes zero or negative. That means: no more economic growth, mass layoffs and disaster for the working class who will bear the brunt of it.
It's not a transfer of wealth. It's only a transfer of wealth from the uninformed to the informed. Your retirement fund has no issues - they're putting it in stocks and bonds. Your house has no problem. It grows in value too. IAnd it would take decades of inflation to kill your savings even if you stopped saving today.
@@StCreed Shadowstats says otherwise, the real monthly inflation rate (CPI) is roughly 10 percent. The current rate of inflation eclipses that during the Carter administration. Which makes it the highest in United States since the federal government started tracking it lol. Yet again, I can smell either a Brandon supporter or a hedge fund asshole.
@@StCreed I don't fear deflation. That would also increase purchasing power. I'm not sure I buy into the narrative about how bad it is.
Here in Belgium we have a system called the health index. It's a system where everyone's wage is adjusted according to the cost of living. Depending on your sector it happens every 2 years, yearly, quarterly.
Really?? Thats a good deal. We don't have that in America unfortunately.
I wish more business owners have the same mindset as Mr. Rossman.
"Why am I spending so much on this IT guy that knows literally everything about how the system works? We could save so much money by firing him and hiring a college student that's never even touched a keyboard before. He's always on his phone, so he must be great with technology."
@@mariokarter13 or a high school dropout like ifixandrepair does 😆
I'm self-employed and I've been hitting this exact problem for the past couple of years now. It's been very difficult for me to raise my prices (they are not unreasonable and for a time, I was probably underpaying myself if anything). Families have ever-increasing costs, I have increasing costs, prices have to go up sometime. However trying to do that causes difficulties with the clients that were already stretching their budgets, so I have to make a choice to either keep them on at a greater expense to me, or risk losing them altogether. It's tricky striking a balance between the value of loyalty and consistent work and the literal value of the money.
In the end, the inflation doesn't benefit us at all as now both sides have less disposable income that could be circulated back into the economy. Where's the economic benefit of that?
It benefits the already wealthy who hold overinflated assets and use any profits in cash to just buy more assets as opposed to spend on wages.
If the big companies who employ most people nowadays did less of that and spent more on wages they'd cut into their profits ,which seem obscene to me, but people like you AND your clients wouldn't have so much difficulty dealing with inflation.
@@TheRockroll2 All very true. Inflation only really benefits those who talk about "trickle down economics" and we all know what a giant scam _that_ is.
The problem is that you see inflation as some economic device that some created when it is just a cumulative market effect that results from the interaction of a complex array of factors.
@@SurmaSampo it is not a problem that he sees it as what it is
inflation is a centrally created problem, central banks with government granted monopolies create more money, as a result money loses value, and those most closely connected to the central bank benefit at the expense of everyone else
The only benefit is to the already wealthy elite globalists.
They want to eliminate the middle class completely, have all of the peasants eating out of their hands, and have 1000 years of unchecked power.
I used to hear older folks complaining the most about inflation and didn’t get it. When you’re young you are on a upward income trajectory and could easily just work a second job. When your older your income really plateaus and burning the candle from both ends with a second job isn’t as doable with an old body.
Inflation is a tax on savings and on the last people to receive the money.
lol louis, the cheese rant made me laugh because in victoria australia, when we were mid hard lockdown a few months ago, the cheif health officer told us to stay home and enjoy our fancy cheese platterers, when at the time i couldnt even afford a loaf of bread lol, talk about being pissed off, its all good for him he is getting paid $500k a year of corse he dont care if we are locked down for 6 months straight because his getting paid, i couldnt get any assistance that everyone else got because im self employed and dont fit any of their neat little boxes that you need to fit into to get help, made me want to beat the dude up with a fancy cheese wheel lol
inflation causes many smaller business to either close shop, merge with or sell to a big company over time. due to prices of goods and services going up as money gets devalued.
Hello Louis! Here in Argentina we live with 3% inflation, monthly. Salaries are not increasing and our government is forcing price control which down the line will cause prices to go up. A lot of people living abroad bring used Iphones to sell them here and a lot repair shops are popping out. Thank you for your content!
what are prices in Argentina compared to America or Europe? Can you buy a home for 20k USD? If someone moved there with 50k USD would they be wealthy?
Price controls cause shortages. It makes it more expensive to manufacture the controlled commodity than you can sell it for. Then those manufacturing it stop and your supply collapses.
The story of every commie famine that ever happened.
@@solaroid4442 *cough* Venezuela *cough*
I'm 21 and starting my own construction business this spring. I realize that, to own a home, have a car not on a finance plan and to simply travel and see the world, 9-5 for the man does not cut it! Thanks for the encouragement Louis
Own a warehousing company out of ft Lauderdale we raised prices for services 20% in some services for the increase in labor and diesel costs it's bad and may get worse
Your Diesel usage is your bigger problem, labor not.
Well, this is because certain industries don’t grow as fast. The repair industry is monopolized. Let’s take John Deere. A lot of farm equipment can be repaired by independent mechanics, but JD doesn’t allow it. They also make record profits last year and spend a lot of it on stock buybacks. So the health of the industry, plus how consumers spend their money is important.
Yes market mehcanisms, both good and bad, contribute to why prices change and that your profitiability also may, even if you do everything "right". However, Louis point (I''m reading his mind here) is probably that artificial inflation as influenced by governments, large instituitions, corporations, banks, etc. adds another layer of complexity on top of everything. Not only is the market changing, money in itself is changing. The backbone of money, fiat currency, is trust. And the world's central banks are bankrupt. To the degree monetary policy is achieving or contributing to economic stability, the cost in terms of wealth distribution is evident. And this is how we get to "evil"
Inflation is indirect tax! No wages will ever keep up exactly with inflation. Entire reason for inflation is that government can "print" (I know, they don't print paper money that much, just enter larger numbers in databases) more money and spend it immediately, using relatively low prices. By the time wages and costs of materials goes up, government has already gotten stuff and services they need at previous, lower prices... That is the entire point of it!
Dnt forget fact that capitalism don't work without inflation
i noticed the chips bag shrank from 300g to 250g and it cost 2euro now instead of 1 all m food cost went up 100% over 5 uears but m salary have been stagnant
You're right about the value of repairing a device. My 2 year old Asus ROG laptop died in 2020 and it needed a new motherboard, which was out of the question. I parted it out and recycled it. I got a Tuxedo laptop this time. It's a well-made machine. Top German quality.
it'd be neat if Laptops were a bit more modular just to have the fun of tinkering on them.
I've been working with a MSI B350 as a base motherboard for a new PC and it's really fun to put it together. Gonna have even more fun with the software portion as I'm booting it exclusively with Linux.
Ad hominem logical fallacy. "german therefore good".
@@snap-off5383 ...uh... I'm afraid you missed the left turn for the debate center?
@@snap-off5383 Of course not all German products are good, just like how some Japanese products aren’t well made.
@@AshnSilvercorp Nope. Just being an equal opportunity educator. He'll live a better life now that he no longer lives under the impression that German origin automatically means quality craftsmanship. He may actually vet items on their actual quality and avoid a German rip-off.
I don't see the value in a $600 device in the first place. I buy
I was going to buy an off-road rear bumper with a swing arm for my Tacoma and the fabrication company raised their prices across the board by at least 30% citing increased cost of labor and materials so I just held off my purchase until prices normalize.
Or you can just build one for the same price, and learn a skill and have all the tools necessary to do so.
I built the ones that went on my Tacos.
I'd also say that when you adjust for specs, the inflation rate for MacBooks is actually negative (depending on how many years have passed). That cost formula you mentioned likely also includes a spec comparison between what they want to repair and what they'd get if they bought a brand-new Mac.
Agreed... and it's sort of a variation of a weird psychological pricing aspect of game consoles. Atari 2600 launch n: $199. Intellivision launch: $299. NES launch: $199. Playstation 1 launch: $299. Playstaion 2 launch: $299. Base Xbox 360 launch: $299, Xbox series X $299. Switch: $299. It's like there's this magic $199-$299 number that people will buy consoles at that somehow stays constant, even though $199 was a LOT of money in the late 1970s.
Well, technology has a very large ceiling in terms of improvement and efficiency. Also, a MacBook isn't necessary to live. The problem with Rent, Gas, and Food is that they are something everyone will always need and can't be significantly improved in terms of supply.
@@Lantertronics It's also that inflation is being countered by lower manufacturing costs for electronics at pretty similar rates. I also note you omitted quite a few consoles that were either over that price range or below it mainly due to precisely more or less powerful hardware that dictated higher and/or lower price points than the ~299$. Like Sega Saturn or Playstation 3 for example.
@@AppleSauceGamingChannel Ah yeah, I left those -- and similar consoles like the 3DO -- out of the list precisely because they had trouble selling (well, at least the Saturn and the 3DO, but also the PS3 at first) precisely because people were reluctant to spent that much money on a game machine. Similar story with the Apple Pippin.
I know you're not used to inflation, imagine having 50% inflation year over year for the past 20 years. Or having 1000% inflation in a few months. The uncertainty you go through, people not wanting to spend a cent but at the same time, spending everything because if you wait even one day, the next morning you might not be able to buy it any more
Post WW2 Germany moment
@@morganhazel2373 didn't know that. I was talking about Argentina since 2001 and the hyperinflation in '89 and '90
@@rodrigomaero there's a few points in history where it got bad. You'd think people would learn after the first time
@@morganhazel2373 yup, this is literally one of the main causes of the fall of the romans
Inflation: **messes up the economy big-time**
Federal Reserve: "Haha, money printer go brrr!"
Below.. "Federal Reserve" in a nutshell.
m.ua-cam.com/video/i-wTlo1rqEI/v-deo.html
I live in the country with the 4th highest inflation and we call inflation the "Unregulated Tax on the poor" because it affects 20 times more the people under poverty compared to the top 1%
There's also the matter of people on fixed incomes (specifically, the elderly.) Sure, there are COLAs for Social Security, but they are a drop in the bucket compared to increases in food, fuel and other essentials.
Elasticity of demand... Why do I remember that from my old Economics courses?
I haven't raised my hourly rate since 2001 when working as an independent. Clients simply can't afford it as real wage growth has been less than 4% that entire time here in Australia, and the welfare payments have been similarly subdued. Which means my hourly is now below the minimum wage, and people still can't afford it.
if that's true, you need to find another job or at least you need a different (cheaper) way of doing your job.
One of your most enlightening videos! This was a perfectly balanced discussion of a highly nuanced issue. I came to this channel for gear repair, stayed for the great life lessons, keep it up!
Brilliant. I was waiting to see if you got the definition of inflation correct.... ~ @8:50, you did! Great job, Louis.
You - again - absolutely nailed it!!!
This channel now is more "basic business for normies". As business teacher at school I'd just show your channel and discuss it.
Tell me about it Louis, in my country we've had high inflation for over 15 years now. At the beginning of the year I made enough to live comfortably, dine out some nights, go out with my wife and friends, etc. Now 8 months later inflation has been around 40% from that point to now. My employer only raised my wages by 11% so far. So I've lost nearly a third of my real salary, and it shows. I'm struggling to make ends meet now. It's just exhausting.
I thought this was a real estate channel. Now it's an economic explained channel? Nice
There are two kinds of inflation, the first is called "demand-pull," the other is called "cost-push." Demand-pull inflation occurs when demand exceeds supply, which pushes prices up. This is generally good, as high prices encourage more production, which requires more labor, which results in higher wages. Cost-push inflation is caused by diluting the money supply, or minimum wages which exceed the value of the particular labor being performed. Our current inflation is a mix of both types, but more of the latter than the former. In the last 2 years the US government has increased America's money supply by 40%. It has also implemented restrictions on the energy market which drives up electricity, heating, and gas prices, and America's economy is energy-based. In short, nearly all of the inflation we are currently enduring is the result of policy. State mandated inflation is a stealth tax by which the state can take the value of your wages and savings without actually touching your money. In regards to Apple, they are not raising prices on some products because their profit margin is remarkably high. The market is a natural phenomenon, and it always strives toward a point of balance. Things which are too cheap are eventually pushed up in cost, things which are too expensive are pushed down in cost. Those who think that Apple products have been overpriced are seeing how the market eventually pulls all products and services to their natural value.
This is an awesome video, Louis. Much appreciate all your content and knowledge.
In Poland we have 7% inflation this year already! And on construction and home renovation its up to 300% for materials! You can say what You want about evil corporations but I have to admit - my company thats hiring over 200k people - we get each year salary raise at least 5-10% 😉 so sometimes stability like that is…perfect start for a career 👌 cheers!
Poland (and other eastern European counties) have had several years of relative high inflation to catch up to the prices of north and western Europe.
Next thing you know,
we'll have YELP employee reviews.
Yep, i still see jobs paying minimum wage where i live. 8 years ago making 12.50 was basically the same as making 20 now. But some companies still pay that when you drive down the street and every other company is starting people at 18 or 20. Inflation is a dangerous thing cause i see how much prices have changed, the air filter i buy for my car was 22.99 in January, i paid 45.99 last week for it
*Inflation is the hidden tax and devaluation of your labor and efforts*
Aka revaluaing the market.
I raised my prices 10% due to inflation so I could raise my employees wages by 5%. Granted I only have two people working for me so that doesn't scale. Now I work at a laboratory so the people I hire are already skilled and make good money. I passed off the costs unto the customer
Have fun losing your Business with this move.
This video is great! These were all ideas I had in my head, I just never connected the dots as well as you did here. The way inflation affects certain businesses differently is something we all experience but I don't think most people realize why or how it's happening. The way you explained it was perfect.
I work in a small repair business, we had no problem raising our prices no one has complained. Your customers understand inflation and will support you if you raise your prices 5 to 10%
This is the clearest explanation of the effects of inflation that I have heard. I feel like smashing up my computer just to let you fix it!
It's almost as if the existence of corporations is directly at odds with the preservation basic human rights 🤔
Nailed it
The existence of the Federal Reserve*
overpaid ceos are a different problem. And while bringing down one ceo could give 100 middle class jobs, the inflation is soley due to government printing and interference.
I do landscaping/yard maintenance for people. I raised my hourly rate from $20.00 to $30.00 in July as price increases hit. I kept almost all of my existing customers. Some call me less often but I was still able to find new customers. End result was I'm earning more dollars, but my standard of living hasn't improved diddly squat with all the price increases at the grocery store and gas station.
E-commerce electronics distributor here 🖐. To keep it short and simple, all costs have been completely been passed down to the consumer. Apple will too likely raise their prices on their entire product line next year to adjust for the increase in cost of parts, labor and shipment from Shenzhen.
Ok, so just an effect of trumps trade Deals with China and covid.
There's one more part of the inflation equation that you could have addressed in your video. That is to say eventually, when people are paid more, Apple will eventually raise their prices.
That's down the line, but your ability to be economically viable is tied intrinsically to those bigger businesses you mentioned.
I don't have much space to make my point cogently...
Good point. The thing is, it happens as a domino effect. Something has to happen now that then leads to something down the line.And poverty is all about being too broke to wait until _"down the line"_ happens.
Poverty is about making my money back on an investment within 27 days because that's when I next have to pay my gas bill, or take a cold shower. The same principle applies to a small business, on a larger scale.
It fucks up everything in slow motion later so that spending can be done right now.
"When people are paid more"
Bold of you to assume that part will ever happen.
@@mjc0961 It will happen, you will earn 1 dollar more but the cost of living will go up 10 fold. You still make more money so why be unhappy? :)
@@eriksvensson2098 companies can't quite do exactly that because as louis said, raise your prices too high and you price yourself out of the market.
If big businesses continue to raise prices beyond inflation and don't raise wages to match eventually people can't afford much of anything anymore.
Not sure why they don't recognize that. If we keep going as we are the economy WILL eventually collapse from all the wealth accumulating at the top leaving businesses without an actual customer base. Because employees are also potential customers.
@@TheRockroll2 What is the alternative when you cant afford anything? there is a few ways but it all boils down to renting instead of owning.
which will deem much more profitable than other alternatives.
As demonstrated in Peter Joseph's zeitgeist trilogy. Specifically addendum, inflation is built in. All money is created by an exchange of treasury bonds for federal reserve notes, which once deposited into a bank account, becomes legal tender available for new loans. It is being promised to be paid back at interest. Thus all money is created in debt and thus inflationary by its very design.
Best way to explain or understand inflation I ever heard that really stuck with me... inflation is a tax on your savings. It's the government reaching into your bank account and taking the value of your saved money away from you by devaluing the currency by printing new money.
That was the best practical real world explanation of inflation I have ever heard, better than any of the so called expert economists will give you. Inflation really hurts the consumer - because so much of what we spend on has an elastic price that can easily be increased to the point that competition allows. In Aus, we are laughingly called a nation of shop keepers, buying shit from China, marking it up, and selling it, with zero value add, zero intelligence. We are at the mercy of China to keep prices low (even though they could jack them - no competition) and the greed of our shop keepers - (generally very greedy - markups of 100%) . And also our banana republic dollar, which does not have the massive advantage of being a reserve currency - like the US dollar - (biggest financial ripoff scam in human history).
0:38 That looks like a scene out of a post-nuclear game.
In my industry, in my market, all of our fixed costs have gone up. (energy, real estate, taxes, etc.) While the players in our market think that if they lower their rates, that they will create more work, which does not happen. So where this has left us is that if we raise rates, we won't get any work. If we leave rates the same, we actually have less money at the end of the day to pay employees, as everything else costs more. It is a horrible catch 22.
What is your industry?
This man knows his stuff, I’m a business owner , I repair motorcycles... I agree 100% with Louis. Consumers spending risk dictates how much they will spend. You can’t always raise your prices. But sometimes it’s necessary, that’s the business owners risk, take the risk, raise your prices.
The thing you are talking about is called "the price elasticity of demand" in economics. businesses with more elastic demand are less able to adjust prices
It's funnyto see that the MacBook has stayed the same price overall, which just shows that it's an artificial arbitrary price to begin with. Apple seems to sell enough of them that they can allow it to get less expensive with inflation, or maybe they fear less overall sales if they raise the price. I would've thought that the price would rise with rising cost of raw materials lately.
Ask someone if they would rather have double the buying power or a 10% raise. If they choose the latter, they don't understand economics.
Another way to look at it is that when prices go up for you, they also go up for the business. When prices go down for you, they go down for the business. So wages do not have the ability to go up with inflation without sales permanently rising or sale unit prices permanently rising. The big exception being economies of scale for manufacturing businesses. The rules there are somewhat different. A 30 cent price rise can mean 100k dollars in increased material costs to the company. Larger retail companies like Walmart can use economies of scale too which is at least a part of why they are more insulated from inflation.
Thank you for a very interesting take on the subject of inflation as it affects us today. Thank you for also building up a following that has interesting discussions in your comments section on the subject. This is something that affects everyone but the majority don't understand what is the cause other than [insert latest crisis here]. Here in the UK it is a seldom discussed topic outside of whoever lives at no.11 Downing Street futzing with the duty on cigarettes, booze or petrol.
It also affects consumers differently, read about the Cantillon Effect, the relative prices paid by consumers depend on how close they are to the source of the monetary inflation. Both companies and consumers that get the newly issued money first will pay a lower price than those who get the newly issued money last, because price changes happen gradually as the money circulate.
Another example is that of the small business restaurant owner. She can't increase her prices because people aren't gonna want to pay $15 bucks for a burger... much less $20.
What are you talking about? The only burgers under 15 are the crappy fast food, and even those are way more expensive today than a few years ago
@@jool7793 I just went to an EXTREMELY nice restaurant and got a premium burger. It was $9. What are YOU talking about? Where do you live, Commiefornia?
@@jool7793 but you are right about the rest. You can thank democrats for that.
@@jool7793 around my town you would go out of business in 2 months with those prices lmao
@@HeWhoIsWhoHeIs a Big Mac meal at Mcdonalds cost $8. A meal at 5 guys is more than $12. You must be very broke if you think a $9 burger is fancy.
The problem is that your entire business model is dependent on Apple maintaining high profit margins on goods that are affordable to repair.
The long trend here is the same as what happened to other consumer appliances where eventually the device is so cheap to buy and requires so much specialised labour to repair that replacement is cheaper.
All I can recommend is looking at repairs of goods higher in value and that are less commoditized.
when the "federal reserve" buys the failing mortgages on all that unused NYC real estate, suddenly nobody will lower the rents on it to get it rented and it just sits there. Meanwhile the owners of the underlying property and sellers of those mortgages have trillions of dollars to spend and as they do that, you get inflationary price spirals in real estate and ultimately everything else. the news says natural gas will go up 50% this winter. what a joke.
I would be interested in your thoughts on the idea of a UBI backstopping wages. Especially if it was paid for by a progressive (earn more, pay a higher proportion) tax on businesses. It makes sense to me, but I'm not a business owner.
I'm sure there are lots of problems with the idea if large corporations can't be made to pay reasonable taxes, but that's like saying it's impossible to cross a river because our boat has a hole in it. Fair corporate taxes are a different kind of beast, I'm just curious about your take on the UBI idea.
Money for nothing would destroy society.
If there is any one policy that needs to be implemented, it’s a policy where only net taxpayers can vote- those who pay more taxes to the government than the value they take out in the form of the per capita cost of services like roads/police, as well as and especially welfare programs.
@@orppranator5230 what? Are you saying we should go back to the good ol' days of plutocracy?
@@orppranator5230 besides European nations are doing great even with generous welfare because they genuinely care about their citizens and small businesses instead of large corporate donors
God forbid I pay more in taxes for losers to stay home and smoke weed...
Then you wonder why tax avoidance is a multi trillion dollar industry.
@@duckpotat9818 why don't you move to Europe
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered." - Thomas Jefferson
Excellent analysis! I never realized all this about inflation! Thanks so much!
The company I work for designs powerline. We work with co-ops on very difficult projects. Our hourly rate is locked in due to contracts and they're updated every 5 years. We currently have 4 years left on the current contract and if inflation rises too fast in the next 4 years it'll seriously hurt the company.
Isn't is impossible for a business to grow more efficiently year after year? Isn't there a point where maximum efficiency is reached, at least realistically?
Some people think that "Moore's law" will last forever. We are gonna hit a point where we cant make transistors any smaller. However we are starting find that we can put our integrated circuits closer together to fit more of them onto a board.
@@evannibbe9375 theoretically maybe. You're assuming business owners buy into the robots ethically, or can even afford them. You also assume consumers will shop at these places. There will be backlash to automation, and it will not go smoothly in ever instance.
Is this really a matter of inflation, or is it Apple that have lowered their prices (that is, not followed the inflation curve) to compete with all the repair shops?
they probably are willing to sell "cheap" to get more people "into" the apple ecosystem where then its more difficult to leave
Yes! It really is a matter of inflation. It’s not about just about Apple. He used himself and his business as an example. But he’s referring to every business whether it’s a sales business , service business or both.
i would not say the repair shops are the influence here. Rather the general ignorance of people not really realizing inflation is happening. If they would go up with their mac prices, people would complain and see it as unfair. In the mind of most people a price of 999 over 5 years is a price that stayed the same even though it did not. ( i am not sorry for apple, they make enough profit.... just my thoughts on why they don't do it)
SO GLAD you address this "conveniently overlooked" massive flaw and real truth that most wages really DON'T rise with inflation!!! It's a lie to think that wages are always increasing comfortably just because the currency devalues and you get more "profits" because of it.
If a business can raise prices, they will. Here's an example that I've noticed. McDonalds every year raises all their prices by 10 cents. They will do it at the same time as mailing out coupons so that people don't notice the prices are higher. For the first time that the coupons are valid, people will be using the coupons and saving on the price of food there. But after that, will be paying slightly more. It's a small price increase, but is acceptable.
As for how apple managed to keep the cost of its products at the same price, I think they leaned on their supplier to cut costs in labor, because it's china. I think they also cut costs by finding ways to build their products more efficiently. But I also know that apple will heavily invest up front in a new way to build their products if it saves them money in the long term.
I see economics along the lines of plate tectonics, cause somewhere along the way, there's going to be a fault line that hit a snag somewhere and eventually cause a massive earthquake.
This isn't economics in a natural sense. It's government manipulation and control over a nations money supply. The phenomenon is counter to traditional and natural economic forces. Anytime governments print trillions of dollars without any porpotional increase in labor, goods or services inflation will prevail.
Bosses raise prices 5% every year and give us 2% as that's CPI. (And due to the area suddenly becoming popular, living cost inflation where I live is ~7-8%.)
Then compain when people quit.
I am an assistant manager (and technician) at a tech repair shop and we have slightly bumped our prices on a lot of different repairs, some people don’t care/don’t say anything and some people complain about the prices being higher and surprisingly most of the customers even after complaining will still go through with the repair.
It's the same over here in UK, London, food has gone up, fuel bill has gone up every thing has gone up, and the government have done this.
Counterpoint as devil's advocate: Inflation rate has been well discussed for a long time even before the 2000/2008/2020 reasons, almost akin to saying "the stock market averages 7% annually over time". Sometimes it's higher, sometimes it's lower, but the average is calculable. With electronic devices not costing as much and raising with inflation as much as other products (like cars or houses for example), and having a repair service based on those flatter prices (and decreasing in many cases when it comes to electronics/computers), it's straight-forward to foreshadow upper limits of success in such a business model way ahead of time and quite easy to see why repair shops were all over the place in the 90s and early 2000s, but have faded away with fewer remaining nowadays.
At some point (hopefully before the squeeze is too much), the internal seesaw has to swing from the "complaining" end, to the other side of deciding if either the business model makes sense anymore to keep pushing against the grain of what everyone knows is happening, or adapting the business to include more profitable services. Yeah, inflation sucks, but it's more predictable than many other things in life.
I remember back in the 90s, especially early-mid 90s, buying a computer was a big deal. It'd easily cost $2000-3000 and that was in 1990s dollars. If something broke we definitely first thought "lets get it repaired" versus buying a new one. Fast forward to 2021, new computers are still the same price, or often way less in 2020 money, 30 years later. This, along with the "replace" culture we have in the world, doesn't make me surprised that repair shops have disappeared. My guess is Apple and other companies already knew this long ago, which is why they have the policies they do nowadays (nudging customers to buy a new one instead of getting it fixed). It not only is uneconomical to pay people living wages to fix the low-cost (relatively) items, but they can increase their profits even more by selling new.
I think the only way that the world goes back to building higher quality items that will last along with having a repair culture, is if there suddenly becomes a way that manufacturers are forced to limit the number of units they sell, either by material shortages or laws. But doubtful that will happen anytime soon
Every business is raising prices.
It all stems back to the HORRIBLE decisions made by democrats. We need to get rid of ALL of them
@@HeWhoIsWhoHeIs are you paid to spread hate on the internet? I recently watched the smarter every day videos and your comments seem kind of sus.
@@HeWhoIsWhoHeIs both Democrats and Republicans are terrible in my opinion.
However there are Progressives that many people mix up as democrats, which from how I see it, are much better than these two other ”parties” that are disguised as one, as they both more or less have the same goals in the end, and the top one is serving their corporate donors.
So please stop blaming one or the other when they both are practically playing the same thing different name blame each other game..
@@HeWhoIsWhoHeIs What do you mean get rid of them all? Half the population supports democrats and their policies. They aren’t going anywhere.
The money printing during the pandemic started on March 2020 with the federal reserve dropping interest rates to 0. Trump and the Republicans were in power at that time. The cares act passed in April 2020 that pumped 2.5 trillion into the economy and than another 900 billion in December 2020.
preface: everything you said is true
The general argument for inflation is built from a few factors:
- "deflation is bad, because people will hold off on buying things because they think it may continue to do so, which becomes a rolling, self-fulfilling prophecy that reduces economic activity, loses jobs/wages, then demand lower more, etc". this has some precedent, and is reasonable to want to avoid. I'll note that some instances of deflation have been shown to be totally fine, usually when the main sources are of inelastic goods like, say, gas, that people won't delay buying anyways because they still need them immediately, and all that happens is people have more money to spend on other things.
- "inflation is good because it incentivizes spending/economic activity, as saving will devalue money". This is generally true, but the merits are muddier. Economic activity is good broadly, but in the US, etc. it has also lead to a lot of risk as people are disincentivized from savings, and are unable to weather economic downturns since debt-savings rations are so poor. So a balance needs to be struck
There are some advocates (like me, though I am more so an advocate for more research, as I've left academia behind, and don't have research or anything to back it up) of the idea of "0 inflation". That the tradeoff of possibly lower activity for higher savings is worth it to strengthen the ability to withstand downturns, and that increased savings should also make money cheaper due to higher supply in savings for lenders to give out, so that offsets some reduced consumer activity anyway. This is actively debated, and not a "solved" topic by any means.
Just some musings from someone who wishes they could've gone further than a minor in econ, but still enjoys the field.
For zero inflation, maybe task the central bank with keeping GDP Per Capita at a certain value, say $50k per year. If it goes above that, adjust interest rates to remove money from the economy. If it goes below it, adjust them in the opposite direction. Maybe include a citizen's dividend from the central bank, too. They pay you, say, $2000 per month, then if there ends up being too much in the economy, it gets removed via the previously mentioned interest rate changes.
The thing that makes it different for people seems actually to be deflationary pressures. If apple decreases their costs relative to everything else, that's deflation. More stuff for less money. And that's what hits you differently because your business is connected to apple. I think inflation is more broadly distributed, although I'm not an economist...
You can't look at MacBooks as having "zero inflation"... instead, when adjusted for inflation, the price of MacBooks is actually getting CHEAPER. You say inflation is evil because it hits everyone differently, but that is not what is directly happening in Apple vs Louis. Instead, Apple has found a way to make its devices cheaper, and THAT is what is hurting the third party repair industry.
Economists: Big Mac Index
Louis: Big Macbook Index
Could you please explain in further detail how the price of a macbook affects third party repair?
MacBooks have gone up in price though. They increase in price faster than inflation can lower the dollar's value.
@@randomgamer6118 if macbooks become cheaper, the cost of repair becomes higher relative to buying a new one, and people may decide it's actually more effective to buy a new one because there isn't that big a difference.
When you make your product through unpaid labor, it's not hard to eat 10-20% inflation.
This is the knowledge you should have learned in high school. But they dont teach this stuff. Lets Go Brandon
This is when you realize that humanity is still in a very primitive stage
Well, that's completely intentional. To make elem. Middle and highschool pretty much just busy work, and leave college to railroad students into one perspective of reality. Which, very conveniently, aids this system we are in in f'ing us over.
I think business owners still live 20years in the past.
A lot of employers I have worked for, still to this day have an attitude to a skill required work tell me when I ask for a raise after years of service:
There is an entire que of people outside the gate waiting for your spot, when in reality there was no one since 2007
Tradesman?
Isn't it nice to do your due diligence and be as good as an employee as you can be and ask for a raise in return for your service and loyalty only to be hit with something to the effect of, "if you don't like things, you can just leave."
No wonder people just want to do the bare minimum. Why bother working harder when you won't get anything extra out of it?
@@isaiahsmith6016 the funny part to me is that they just can't wrap their minds around that concept.
@@jeffshackleford3152 Tragic is the word I'd use.
Sounds like all you made the case for was that inflation in some sectors without inflation in others sucks for some businesses. When a wave comes, some of the "top water" ends up as "bottom water", but the overall progress of ALL the water still is fed by the wave.
Why inflation is a good thing: You're a borrower. You already agreed upon an amount of money to borrow and to pay back. The amount of wealth you borrowed is fixed in time in the past. The amount of value of the money you pay back is variable. When inflation happens you pay back an already agreed upon amount with less valuable dollars, resulting in a net wealth gain for the borrower and net wealth loss of the lender. Lenders and Savers are hurt by inflation, borrowers are helped. Economics 101.