IT ALL COMES TUMBLING DOWN TUMBLING DOWN TUMBLING DOWN

F

youtube.com/watch?v=bUFWXpYJKaI

It's called inflation.

purchasing power is going down because there are more products to buy nowadays and then are also more producers of said products

It's unchecked and has no immediate impact on the distributors of the currency.
Y'all being robbed.

WHEN IT ALL COMES DOWN
I DONT WANNA COME BACK DOWN FROM THIS CLOUD

That would make purchasing power go up.
Increased supply and competition strongly indicates a decrease in cost. Since purchasing power is the "bang for your buck," cheaper goods automatically boost that statistic.

there is also demand for other currencies, which would make the dollar less valuable

WORK
CONSUME
DIE

Which is a contributing factory to the devaluation of the dollar. Is that related to the cheaper production of consumer goods?

"The taxes keep on going up of that there is no doubt
But still they just can't take it in as fast as they dish it out
Our national debt is monster size and growin' every day
Our children's children, still unborn are gonna have to pay

Our dollar used be the soundest money on this earth
But now two bucks won't even buy a good old dollar's worth
Unless we stop inflation and take care of what we've got
The Communists may win the fight and never fire a shot"

You burgers can't learn.

America do you even know how to reduce inflation?

im not an economist but why do prices keep increasing when they are supposed to adjust inflation to gdp growth?

Don't ever post that stupid graph again until you know something about what you are talking about.

The value of currency would decrease over time even if the rate of inflation was 0 over that time.

It is a more correct interpretation. As the amount of goods and services produced increases, the money supply has to increase as well in order to keep a relative balance between goods produced and the amount of money chasing those goods.

>As the amount of goods and services produced increases, the money supply has to increase as well in order to keep a relative balance between goods produced and the amount of money chasing those goods.

I'd argue the contrary: that the cheaper, more efficient production of goods.leads to freed fiscal resources. Cheaper stuff means more money to spend.

Everyone knows the Fed is corrupt. We just elected a guy who hates the Fed and is appointing anti-Fed people to Commerce and Treasury.

Because we have a central bank that artificially adjusts/controls interest rates.

Using resources more efficiently does not free up "fiscal" resources, it frees up actual resources. If i need 1.0 tons of steel to produce a car in year 1 and 0.7 tons to produce that same car in year 2, that means 0.3 tons of steel can be used for other things.

It may sound like I'm repeating what you just said, but resources and money are two very different things, especially when you think of money as just a medium of exchange.

Literally the same rate since 1912

the fear is that if we don't have price inflation that there will be a deflationary spiral which will result in the heat death of the universe

and yet an ounce of gold still purchases a cow

When you MAGA, we lose the top spot. It's time for the rise of the rest.

(For the uninitiated, the interest rates the Fed adjusts are the rates at which they loan to lesser institutions. They've been at "emergency levels" since '08)
How do low interest rates negatively affect the pricing of consumer goods? I'd suggest wage requirements and rapidly increasing taxation have a heavier impact.
What if 1 ton of steel was $1,000 ten years ago and it was $500 now thanks to recent innovations?
Unless you're expanding the rate at which you produce, that 0.3 tons of steel is going to sit in a storehouse until you need it.
So QE and endless distribution of cash has no measurable impact on the strength of the dollar?