Inflation is the expected normal

[benjamen]

I have always found the normalicy bias concept to be very interesting. Since there has been inflation baked into the economy for a few generations, it is now simply the expect normal.

Example in an everyday finace blog:
http://finance.yahoo.com/blogs/brea...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

"Everyday expenses in the future are, of course, expected to rise. By 2024, the price tag for a gallon of milk might top $5 and a a loaf of bread is expected to top $6 in 2044. Keeping the lights on in 2074 could be challenging too. The average electric bill may set you back almost $1,000 each month."

This type of thinking conditions the population to expect "monetary easing" and the resulting inflation and not consider it an adverse situation.

 

[pmbug]

Well, to be fair, the Fed has announced an inflation target of 2%. Compounding is a bitch.

 

[Jay]

I have always found the normalicy bias concept to be very interesting. Since there has been inflation baked into the economy for a few generations, it is now simply the expect normal.

Example in an everyday finace blog:
http://finance.yahoo.com/blogs/brea...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

"Everyday expenses in the future are, of course, expected to rise. By 2024, the price tag for a gallon of milk might top $5 and a a loaf of bread is expected to top $6 in 2044. Keeping the lights on in 2074 could be challenging too. The average electric bill may set you back almost $1,000 each month."

This type of thinking conditions the population to expect "monetary easing" and the resulting inflation and not consider it an adverse situation.

this mentality pisses me off to no end. No one ever stops to wonder WHY we have inflation (I mean, I know everyone on this board knows why, but...) the sheeple I work with accept inflation as a normal thing....