Posted by jrd_x on 6/13/2012 6:07:00 PM (view original):

Posted by swamphawk22 on 6/13/2012 6:04:00 PM (view original):

Posted by jrd_x on 6/13/2012 5:53:00 PM (view original):
If it really is inflation, the movie theater owner is raising his prices too (and paying his vendors and employees more).

Inflatin isnt a magic trick. Your wages dont go up just because costs go up. They may but some people dont.

It certainly isn't a magic trick.  Answer a question for me.  Why is the fed pushing interest rates down?

To stir economic growth.

Posted by MikeT23 on 6/13/2012 7:46:00 PM (view original):
Should I read what I missed or should I assume that jrdx is still insisting that inflation is good for the economy?

A small increase in inflation (3-4% over the standard 2%) during a recession caused by a collapse in demand, is good for the economy.

Posted by swamphawk22 on 6/13/2012 8:10:00 PM (view original):

Posted by jrd_x on 6/13/2012 6:07:00 PM (view original):

Posted by swamphawk22 on 6/13/2012 6:04:00 PM (view original):

Posted by jrd_x on 6/13/2012 5:53:00 PM (view original):
If it really is inflation, the movie theater owner is raising his prices too (and paying his vendors and employees more).

Inflatin isnt a magic trick. Your wages dont go up just because costs go up. They may but some people dont.

It certainly isn't a magic trick.  Answer a question for me.  Why is the fed pushing interest rates down?

To stir economic growth.

But what's the theory behind it?  Why would lowering rates stir growth?

Posted by jrd_x on 6/13/2012 5:53:00 PM (view original):
If it really is inflation, the movie theater owner is raising his prices too (and paying his vendors and employees more).

If people aren't buying movie tickets because they now have less discretionary income (thanks to inflation), how does raising ticket prices help?

Posted by tecwrg on 6/13/2012 8:22:00 PM (view original):

Posted by jrd_x on 6/13/2012 5:53:00 PM (view original):
If it really is inflation, the movie theater owner is raising his prices too (and paying his vendors and employees more).

If people aren't buying movie tickets because they now have less discretionary income (thanks to inflation), how does raising ticket prices help?

Inflation doesn't occur in a vacuum. " Higher inflation during a recession encourages consumers and business to spend cash instead of sitting on it, reduces the burden of pre-existing debt, and can have favorable effects on trade" (Thoma).

When we are at full employment, the positive effects of slight increases in inflation tend to go away, but, as Glasner points out here (http://uneasymoney.com/2012/06/11/how-did-we-get-into-a-2-percent-inflation-trap/) , preventing inflation from rising above 2% comes at the expense of sustained high unemployment.

Posted by jrd_x on 6/13/2012 8:37:00 PM (view original):

Posted by tecwrg on 6/13/2012 8:22:00 PM (view original):

Posted by jrd_x on 6/13/2012 5:53:00 PM (view original):
If it really is inflation, the movie theater owner is raising his prices too (and paying his vendors and employees more).

If people aren't buying movie tickets because they now have less discretionary income (thanks to inflation), how does raising ticket prices help?

Inflation doesn't occur in a vacuum. " Higher inflation during a recession encourages consumers and business to spend cash instead of sitting on it, reduces the burden of pre-existing debt, and can have favorable effects on trade" (Thoma).

When we are at full employment, the positive effects of slight increases in inflation tend to go away, but, as Glasner points out here (http://uneasymoney.com/2012/06/11/how-did-we-get-into-a-2-percent-inflation-trap/) , preventing inflation from rising above 2% comes at the expense of sustained high unemployment.

I'll ask again.  Please try to give a direct answer.  If you're unable to, then say "I don't have an answer to that question" rather than attempt to distract the discussion with bullshit.

If people aren't buying movie tickets because they now have less discretionary income (thanks to inflation), how does raising ticket prices help?

The answer is that while things cost more, there is more than enough of a lift in overall income to actually increase movie ticket demand.

jrd_x once again shows his ability to parrot other people's theories without understanding any of them.

It's a gift.

It would be nice if he had the ability to parrot other people's ability to answer questions directly.

Posted by jrd_x on 6/13/2012 9:11:00 PM (view original):
The answer is that while things cost more, there is more than enough of a lift in overall income to actually increase movie ticket demand.

Income is not demand.

Demand is getting more people to buy your product.

If somebody doesn't feel that they have the discretionary income to buy an $8.50 movie ticket, raising the prices to $9.00 a ticket is not going to incentivize them to buy one.  In fact, more people will likely be discouraged, thus further reducing demand.

Should I bother reading anything jrdx has posted on this page or is he still insisting that people will somehow have more disposable income with higher inflation?

Posted by tecwrg on 6/13/2012 9:31:00 PM (view original):

Posted by jrd_x on 6/13/2012 9:11:00 PM (view original):
The answer is that while things cost more, there is more than enough of a lift in overall income to actually increase movie ticket demand.

Income is not demand.

Demand is getting more people to buy your product.

If somebody doesn't feel that they have the discretionary income to buy an $8.50 movie ticket, raising the prices to $9.00 a ticket is not going to incentivize them to buy one.  In fact, more people will likely be discouraged, thus further reducing demand.

But if someone has more income and wants to see a movie, a 5% increase in ticket prices is not going to stop them from seeing a movie.

Inflation during this economy would reduce unemployment. More people having jobs leads to more demand for things like movie tickets.

Posted by MikeT23 on 6/13/2012 9:35:00 PM (view original):
Should I bother reading anything jrdx has posted on this page or is he still insisting that people will somehow have more disposable income with higher inflation?

No, you nailed the gist of it.

Answer a question for me, what, in a broad sense, caused the downturn in the economy?

Posted by jrd_x on 6/13/2012 9:45:00 PM (view original):

Posted by tecwrg on 6/13/2012 9:31:00 PM (view original):

Posted by jrd_x on 6/13/2012 9:11:00 PM (view original):
The answer is that while things cost more, there is more than enough of a lift in overall income to actually increase movie ticket demand.

Income is not demand.

Demand is getting more people to buy your product.

If somebody doesn't feel that they have the discretionary income to buy an $8.50 movie ticket, raising the prices to $9.00 a ticket is not going to incentivize them to buy one.  In fact, more people will likely be discouraged, thus further reducing demand.

But if someone has more income and wants to see a movie, a 5% increase in ticket prices is not going to stop them from seeing a movie.

Inflation during this economy would reduce unemployment. More people having jobs leads to more demand for things like movie tickets.

More jobs helps those people who get them.

Inflation does not put more money in the pockets of already-employed workers who now have to spend more on the basic necessities, and thus have less discretionary income.

Let's assume, for the sake of your argument, that inflation reduces the unemployment rate from 8.1% to 7.8%.  That's great for 0.3% of the workforce.  The other 99.7% are either still employed but now paying more for basic necessities, or are still unemployed and now paying more for basic necessities.

Exactly how is that good for the overall state of the economy?