The bank’s economists noted that because the figures were for an average household. Some would pay less but those with significant debt could end up paying notably more.

Alright guys, here’s my game plan.

Start drinking.

Really, build that daily habit until you’re spending at least $70 per week on alcohol.

Then just stop drinking next year.

Problem solved!

  • ∟⊔⊤∦∣≶OP
    4•7 months ago

    started to feel more confident about spending, it could push up inflation

    Wait… I thought it was the opposite?

    More spending means more demand means more production, which means costs go down… so inflation goes down?

    But saving means less spending, means less income for business, means costs go up due to demand going down so inflation would rise?

    • @liv
      4•7 months ago

      More spending means more demand means more production

      No, inflation happens in that gap between demand and production.

      Say I’m selling 5 sandwiches and suddenly 7 people want them, now I can put up the price and sell them to the 5 who are willing/able to pay slightly more.

      Edit: this is why the RBNZ typically raises the OCR to curb inflation. Mortgages etc going up makes people’s spending go down and slows inflation.

      • @DaveMA
        4•7 months ago

        Khan academy has an economics course that covers this well. It’s videos are pretty poor resolution though, I’m pretty sure it was one of the original ones when Mr Khan was just making his own website with his own videos.

        • @liv
          3•7 months ago

          I love the story of that website.

          • @DaveMA
            4•7 months ago

            There’s a TED Talk here where he talks about it.

            He also talks about working with a small number of schools for tailored maths lessons and much more efficient use of teacher time. It’s from 2011, I wonder what happened. Did the schools outperform other schools? Did it ever branch out wider, or become common in schools? Or did it turn out the model wasn’t too successful.

            School classroms have boxes of iPads like we had boxes of calculators as a kid, and Khan Academy is free, so I wonder why I haven’t heard of it being used these days?

            • @liv
              2•7 months ago

              I think I used to see people recommending it on reddit

              like we had boxes of calculators as a kid

              You did? That would have come in handy.

              • @DaveMA
                2•7 months ago

                I distinctly remember a class set of grey calculators. Like a box of 30. I’m not sure if we had a box in each class or the box moved around to the class using them, I just remember them appearing on some days. In general we weren’t allowed to use them for maths but on occasion they would bring them out and we’d do… something, I can’t actually remember. They weren’t scientific ones, just plain ±*/ ones. This would have been primary school in the 90s.