←back to thread

Inflation erased U.S. income gains last year

(www.wsj.com)
177 points JumpCrisscross | 1 comments | 09 Sep 25 19:44 UTC | HN request time: 0s | source
Show context
pavlov ◴[09 Sep 25 21:41 UTC] No.45189623[source]▶
This year both inflation and unemployment are going up, so it’s only getting worse.
replies(3): >>45189812 #>>45190675 #>>45191395 #
newfriend ◴[09 Sep 25 23:04 UTC] No.45190675[source]▶
Inflation is lower than it was at the beginning of the year. Which means inflation is actually going down this year.
replies(2): >>45190970 #>>45191262 #
toasterlovin ◴[09 Sep 25 23:30 UTC] No.45190970[source]▶
Tariffs are just starting to work their way inoto consumer prices now.
replies(1): >>45191398 #
chrisco255 ◴[10 Sep 25 00:16 UTC] No.45191398{3}[source]▶
Tariffs are deflationary, actually. They are a form of taxation and act to inhibit demand.

Anyways inflation is actually declining and is well below 2022 levels.

https://www.bls.gov/charts/consumer-price-index/consumer-pri...

replies(1): >>45191569 #
ceejayoz ◴[10 Sep 25 00:34 UTC] No.45191569{4}[source]▶
> They are a form of taxation and act to inhibit demand.

They also are a price increase. Whether that winds up being inflationary or deflationary depends on how much that price change impacts demand, which will likely vary from good to good.

replies(1): >>45193226 #
chrisco255 ◴[10 Sep 25 04:19 UTC] No.45193226{5}[source]▶
Tariffs go from the economy to the U.S. treasury, who ultimately issues the currency. That is, it's removing funds from private bank accounts to the US government balance sheet, reducing the deficit and the money supply at the same time.

Inflation is everywhere and always a monetary (or money supply) phenomenon.

Reposting my original claim:

Tariffs are deflationary, actually. They are a form of taxation and act to inhibit demand.

Inflation is actually declining and is well below 2022 levels.

https://www.bls.gov/charts/consumer-price-index/consumer-pri...

replies(2): >>45197732 #>>45199499 #
1. toasterlovin ◴[10 Sep 25 13:53 UTC] No.45197732{6}[source]▶
OP here, I actually agree with you about inflation being different from tariffs (which are indeed taxation), but people do often just conceive of inflation as prices going up, which is why I chimed in about the timing of tariffs (which I probably have more insight about than others on this site, since the company I run is affected by tariffs and we’re just now starting to see competitors increase prices).

That being said, one hypothetical scenario is that tariffs shift demand to domestic manufacturing, causing the price of domestic manufacturing to increase due to supply and demand imbalance. This would result in prices going up without any tariffs being paid. Theoretically. I don’t think that will actually happen in the short term.