Outis7379 t1_iuffn2r wrote on October 30, 2022 at 10:31 PM

People get used to buying stuff.

Everyone is bitching about inflation, but everywhere I go places are packed.

As if the average consumer never took Econ 101, and doesn’t know they’re supposed to buy less when prices go up. Preposterous!

FreeRadical5 t1_iugkz0g wrote on October 31, 2022 at 3:57 AM

I'm certainly buying a lot less. The crashed stocks are much more appealing.

GreatWolf12 t1_iujbqhm wrote on October 31, 2022 at 7:32 PM

Yeah. I'm in the batten down the hatches stage. I started a new job before inflation took off, and I'm not sure how secure it is. On top of that, I'm not sure how quickly I could find a new job if I lose the one I have.

So for me, I've paused all big expenses.

FreeRadical5 t1_iujdt41 wrote on October 31, 2022 at 7:46 PM

I've been in that stage for 10 months now. Sitting on about 100k cash by now.

Funztimes t1_iuh3nos wrote on October 31, 2022 at 8:10 AM

This is exactly what JPow is trying to prevent. He doesn't want inflation to become entrenched and at the moment it looks like it is getting that way. JPow needs to shock the system. Can't see how there is any talk of pivot.

ASMR_NAKED_COWBOY t1_iuhbf17 wrote on October 31, 2022 at 10:09 AM

When interest rates get high enough people will have to use their money to pay interest/pay off debt to avoid paying more interest instead of buying things. That's when it will slowly get fixed. We need rates that are higher than inflation.

nerfyies t1_iuhcibm wrote on October 31, 2022 at 10:24 AM

It more of a time affect, people are just eating away their saving to continue buying the same stuff they did last year when prices were 10% less even though they are not earning 10% more. Combine this with the increased interest payments and people will run out of money quick. I would say spending will be good till holiday season but then its a rough winter.