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[–] captainplanet2 0 points 6 points (+6|-0) ago 

Paul Krugman unforutunately is a political tool. He continuously lies about inflation, and most of what he says otherwise is contextually misleading.

According to Krugman inflation is under 2 percent, this is patently false.

When a 20ounce bag of chips, looses 2 ounces, and the cost increases stays the same, you have 10% inflation. Many other products have seen reductions in the amount initially, then over a period would see the prices rise, sometimes 2 or 3 dollars.

He also talks about inflation outside of a quality context, which is misleading. When prices rise, and materials used, or ingredients used, are of much lesser quality, cheaper for the manufacturer, that is inflation also. Most consumer products in this country are made with extremely cheap materials, cheaper ingredients, to such a degree that I believe actually levels of inflation are above 10%. Higher in some sectors.

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[–] senpaithatignoresyou 0 points 2 points (+2|-0) ago 

He also talks about inflation being a good thing in his books, that it keeps people from hoarding their money for "a rainy day".

But what is the rainy day that people save up for?

Retirement, college, a house, important things. Inflation hurts the poor the hardest, as it saps away at their savings and keeps them from accumulating wealth.