by Summary:
Is "Greedflation" just a buzzword, or is it a symptom of a deeper economic problem? Join us in this insightful livestream as we explore the controversial topic of greedflation — the phenomenon where companies allegedly raise prices beyond their costs to boost profits. Resource Links: https://www.patreon.com/c/ProfSteveKeen/home https://www.patreon.com/c/relearningeconomics https://businessfilmbooth.com/ https://www.planksip.org/
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Is "Greedflation" just a buzzword, or is it a symptom of a deeper economic problem? Join us in this insightful livestream as we explore the controversial topic of greedflation — the phenomenon where companies allegedly raise prices beyond their costs to boost profits. Resource Links: https://www.patreon.com/c/ProfSteveKeen/home https://www.patreon.com/c/relearningeconomics https://businessfilmbooth.com/ https://www.planksip.org/
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| Is "Greedflation" just a buzzword, or is it a symptom of a deeper economic problem? Join us in this insightful livestream as we explore the controversial topic of greedflation — the phenomenon where companies allegedly raise prices beyond their costs to boost profits. Resource Links: https://www.patreon.com/c/ProfSteveKeen/home https://www.patreon.com/c/relearningeconomics https://businessfilmbooth.com/ https://www.planksip.org/ |
The wrong metric is viewing the condition of the haves will have more, and the less will have less. IF labor were held in such high regard the US wouldn't be here. 'Rich' in a 'debtor nation' is just a bigger debtor, and 'they' (monopo lies made by their rubber stamp legislatures) can capture markets at will. Was owning all the debt in neo-liberalism the end game? It's not like countries haven't been ruined before.
what steve said at the start sounds like an off handed remark but its along the same lines as nasagadtha maarajas " the search for reality is the most dangeous of all becasue it destorys the reeality in which one lives"…illusions are much more comfy than reality ..nature bats last chaps ..nature bats last …coudlnt give a fxxuck baout" isms " economics or other wise.
"healthy capitalsit sytem" ..not sure about tha one ty mt old fruit 😁
an economy i looked at recently that was good up to his death was titos yugoslavia ..he called it market socialism ,,,which is why he pissed off washignton and moscow becasue he didint want market capitalism or communsim ….hidden gem ?
read micheal parentis to kill a naition …nato started the shinanegans and shit stirring their not football holligans ,,,it started to be destabalised before that famous match
sorry for spelling stil a dyslexic mo fo
I think a mixed economy is the way to go but with the private entities being worker owned co-ops, not private tyrannies. There is a place for the government to fund or produce a baseline of essential needs like healthcare, food, water and shelter. Once those essential needs are met, it frees people up to became more productive, and more innovative. Most successful people come from stable and or wealthy households where there basic needs are always provided for. What is the point of an economy anyways if it's not making the lives of the people that do all the work in it any better?
Steve Keen just gave Elon Musk a lesson in economics. Keep up the great work Steve.
operaitionally neo liberalsim is swaping the state for the banks? based in legality as opposed to rule of law? becasue everything thing these days seem to revolve around commerce …even the police here in australia are registered as a buciness
It seems to me the solution to results being very sensitive to imput conditions is to use ensemble prediction methods as used for weather forecasting. See for example Tim Palmers book Primacy of Doubt.
"Why would i buy anything today if it will be cheaper tomorrow" is bs. No one would ever buy a laptop nor a phone if people really thought like that.
I have been saying this for years! Glad to know I am the only one who thinks this!
Ummm I guess I’m odd man out then because I very deliberately wait for things to cheaper. Especially high $ items like computers, phones, etc. And most importantly, housing.
@@bradatherton9369 so lets say what he says is true. And let's say prices are falling for everything and they will continue to fall forever (of course for this to be realistic salaries will also be decreasing for ever). Does that mean you will wait forever to buy a house? Of course not, may be initially people would wait but after some time people will get used to it and start buying things normally again, no one wants to wait forever..
@ you’re trying to binary-ize something that is statistical in nature.
@ What is statistically in nature?
An interesting academic perspective. “Next…”
Who programmed the drums for your theme tune? They're good!
how about a separate tax category for grifters.
If you can't explain the jist of it in 10 minutes, you don't have a clear understanding of the topic. "Greedflation" is a bad term for increased margins due to illegal monopolies/oligopolies. Exxon did it, Realpages and ticketmaster do it, Uber kills off taxis then raises prices. Happens all the time in the US. Lina Khan tried her best but the courts ignore the law and follow silly precedents.
wasn't inflation caused solely by printing and spending it by folks? Hanke predicts it to a very precise degree continuously
economy is currently not a science. It is just based on limited models that economists have tried for limited periods of time, on limited markets. There is way too little human psychology in them.
Greedflattion is still relevant, because it means that businesses have increased their margins and if they have done so on necessary goods, like food, housing and energy it impacts the rest of the economy negatively. So it is very important to try to get the margins down again.
Most talk about deflation is not based on actual human psychology at all.
We can see from example the TV market when flatscreen TV started to make their way on to the market, there was a constant growth of their share of the market, despite them being more expensive compared to CRT TVs, and despite the prices going down every year.
Computers get better every year, despite that people buy when they need or really want a new computer. So you would still have incentive to wait, although not a price related.
People can't wait to buy food, energy, housing.
If people ever waits to buy because they want prices to come down, it is either because they can't afford, or they prefer to have money left over for other purchases and investments.
Most economists would act in the exact same way in their personal life.
There are also strong negative impacts of inflation that economists misses. For example is a product used to be under 1, 10, 1000, 1000 dollars, as soon as it goes above that, it will be seen as much less affordable, and make people more hesitant. It doesn't even matter if your salary has gone up.
The only time you actually should want prices to go up, is if there is an environmental or health related reason, why you want people to switch to an alternative product, but that will never ever be able to go down in cost to compete and the price difference is too large.
You want housing prices to go down, as building ages and to be able to renovate.
Housing should be a human right, so it should never be something that is used for speculating. Besides it also gives bank to much power over the economy, when they can lend out money based on speculations of house prices rising, thus circumvent the federal banks in creating money.
The economy should be driven by innovation, not inflation.
But innovation can also come from offerings services and quality of life additions, where it is possibly the marketing to change peoples minds. Like when travelling grew. Or when coffeehouses managed to convince people that coffee can be an everyday luxury.
Or like when spotify and apple convinced people to spend more every year than they ever did on records.
Inflation actually hampers down innovation. Because it requires peoples private economy to grow more than inflation. And not only has that not been the case in the US, in terms of salaries. Even in countries where salaries have risen more than inflation among the average worker, the people at the bottom, that live on disability checks, or work part time, their compensation has not grown enough.
So people do not have enough financial space in their personal economy to buy new products and services, there is way too much competition over the small margins people may have. Making it much harder for new products and services to get enough buy in, to grow.
Spot on!
Is Trump’s bark bigger than his bite? Tariffs, etc.? I would like to be in a dream 😴 state for at least two years.
Look at the Danish labour market model – it a completely different model
The prices went up because people were flushed with cash and spent it. When inventory runs low, prices go up. The flush of money printing enabled this to happen. Before greedflation we saw buyer frugality vanish.
19:47 .. I'm wondering if you still feel we will not see another shock of that depth after factoring in the trajectory changes indicated by the Trump 2.0 admin moves since January 20, 2025?
01:18:00 Day After Tomorrow.. great movie. And, I love that y'all have fun on these conversations.
01:59:45 … I respect that the patient lost it's hair, but why did the hair not grow back. Meaning, why did the profit margins of these companies not return to the same ratio, relatively speaking? I listened all the way through, albeit with some distractions, but I'm still left wondering why companies did not bring their profit margins back into relative pre-pandemic proportions. Is the simple answer, "because the market is still paying the higher price, and that justifies the higher margin"? If so, is that not the simple definition of greedflation?
Lastly, if the above is true, then the only way to pull the prices back down is to mass boycott purchasing said widget/service/commodity. Is that correct?
I deliberately oversimplifying so that I can translate this info back through my network of connections… none of whom would likely sit through this conversation.
Thanks, in advance, for your feedback.