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Comment by MichaelSalib | Hacker News Reader

Given that we're already experiencing zero or negative growth, inflation seems like a really good idea, especially since the Fed can stop anytime it wants and begin raising rates.

By the way, this is not just my opinion. Conservative economist Tyler Cowen (who teaches at GMU) also thinks that a little inflation would be helpful: http://www.nytimes.com/2009/08/02/business/economy/02view.ht...

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...Except it couldn't raise rates. Not with trillions of debt needing to be paid back by both government and corporations (hint: there's no way). So the fed will just print and print and print...until the dollar is worthless.

Right, which is what was supposedly happening with all the TARP and Stimulus and Cash4clunkers and houmebuyer tax credits. Guess what? Still, after 3 years of recession and 2 years of Great Recession, we still haven't gotten that worthless dollar and inflation. In fact, we're talking deflation. AND, wages are steady to up, not down as is to be expected.

"we still haven't gotten that worthless dollar and inflation" Oh yeah? Dollar is at 85 vs the yen, from 115 three years ago. Food prices doubled (food portions also got smaller), healthcare costs doubled, gas prices doubled, and so on. Are you using the old trusty government CPI for your inflation stats?

Your data seems...wrong. Or at least not consistent with my observations. Currency fluctuates significantly and one currency comparison tells us nothing. I've seen no evidence that food portions are smaller. Food prices don't seem to have doubled. Gas prices have definitely not doubled. I've seen no indication that health care costs have doubled.

If you want to claim that the CPI numbers are full of lies (because of a conspiracy?) then you need to bring serious evidence.

> I've seen no evidence that food portions are smaller.

You need to pay more attention then, it's been nick-named the 'Grocery Shrink Ray' and practically all companies are doing it now. The strategy is basically either change the shape of the container (smaller) and keep the same price or to raise the price. Here is a good link to follow;

http://consumerist.com/tag/grocery-shrink-ray/

Oh, and my favorite one yet, "Now with 25% more!" while not actually offering any more.

You're filling up at the wrong gas station, man. Oil is about half the price it was before the recession.

Please read the post. The poster was talking about the bailout. The average gas price after the bailout in LA is around 1.69. The average gas price right now in LA is 3.13

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