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Comment on Bernstein Posits That A 10 Percent Baseline US Tariff On Raw Semiconductors Is "Not Going To Do All That Much," But PCs, Servers, And Smartphones Are About To Get Pricier By ~40 Percent

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Jakeroxs@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago

That is an extremely simplified take of what inflation is.

Here’s a fun example as to why just saying “inflation means prices go up” doesn’t make sense, what happens when a group of companies conspire to raise prices simultaneously? Is that inflation or is that price fixing? propublica.org/…/yieldstar-rent-increase-realpage…

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CandleTiger@programming.dev ⁨3⁩ ⁨weeks⁩ ago
In your scenario that’s inflation caused by price fixing. You seem to be saying these things are mutually exclusive but I don’t understand why you would say that.

Presumably price fixing in one industry would have trouble causing general systemic inflation. But simultaneous greed and price fixing through many industries all at once? Sure, that would do it.

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- Jakeroxs@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago
  I suppose my point is if we put any cause of rising prices under the “inflation” umbrella, it gives people the wrong idea as to the cause. Rather then just specifying what is causing prices to rise, people just say “it’s inflation.”
  
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  - Tobberone@lemm.ee ⁨3⁩ ⁨weeks⁩ ago
    Inflation is defined as the increase of prices over a set period of time. It is in itself nothing, doesn’t do anything and its singular purpose is to be able to say how much something costs today compared to yesteryear. If the price difference depends on a supply chock (something that affects the ability to produce, like a shortage), or a demand chock (suddenly everbody rejects Tesla) is all the same, it results in a price change and can therefore be compared using the measure inflation.
    
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    Jakeroxs@sh.itjust.works ⁨3⁩ ⁨weeks⁩ ago
    Fair enough
    
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