Ep. 33 - A "Sticky" Situation: Welcome to the New Tax
CPI, CPE, shelter costs—these are words that almost no one thought too much about, but today, they are critical to understanding the current state of the market. In this episode, we delve into all these and their effects on households. We’ll explore the latest readings from each index and the impacts of government regulations on consumer prices. We also break down measures of inflation that are less known but just as impactful, like sticky CPI and shelter costs. Today’s guest, Alex, from Market Distillery will provide an exclusive analysis of the current state of inflation and its implications for everyday households.
Tune in to find out how inflation is creating a new normal in consumer finances and how we should plan for it.
[00:01 - 06:27] Exploring the impact of inflation on households using CPI, PPI, and a breakdown of Shelter Costs
[06:28 - 13:20] Interest rates are at a standstill as shelter cost weighs heavy on CPI readings
[13:21 - 19:16] How flexible prices vs. sticky prices are used in measuring inflation forecasts—an audit of the Inflation Reduction Act
[19:17 - 24:41] The dangers of price controls: examining the impact of government intervention on consumer finances
[24:42 - 31:09] The ripple effect of Government regulation and how it hurt consumers and stifled growth
[31:10 - 35:28] Why it’s wiser to let the market price shop and regulate itself
Quotes:
"Inflation is a tax, and it's the silent tax because nobody's necessarily passed a bill or has made a news announcement saying taxes are going up, but when inflation's happening, your paycheck may not be moving, but the costs are." - Alex Stewart
"The more money you print and push into the financial system, you're actually adding further inflation into the system." - Quinton Harris
"Regulation prevents growth. It always has and always will." - Quinton Harris
"Human nature is to be productive and to create and to be of value. So I have confidence that we will find a solution that we will overcome these challenges." - Quinton Harris
Resources Mentioned:
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