You're Fired! (Page 3): I agree that there is much irresponsible spending at the consumer level but as one who carries no credit card debt I certainly would not assume that the need...

Effate Loc: El Dorado Hills, Ca.

Shutterbug1697 wrote:

WHY do you insist on ignoring trump's disastrous m... (show quote)

I agree that there is much irresponsible spending at the consumer level but as one who carries no credit card debt I certainly would not assume that the need for necessities in an economy where food prices are 40% higher than in 2020, gas and energy prices are much higher, housing and transportation are much higher isn’t driving much of this debt. Hey, if Biden gets re-elected it will probably get forgiven and placed on the backs of the taxpayers anyway.

Racmanaz Loc: Sunny Tucson!

Effate wrote:

Inflation was contributed to by supply chain disruptions but it was not the primary cause. It always monetary policy (borrowing, printing too much money chashing too few goods). Prices do and will come down when demand falls. Certainly not to pre pandemic levels due to rising costs to produce but supply and demand will ultimately dictate price. Your beloved EVs are an example.

Have you ever noticed that shutterbug is always trying to blame the American workers for the financial woes caused by Joe Biden? Don’t blame Joe Biden’s policies blame Americans that are suffering.

Effate Loc: El Dorado Hills, Ca.

Effate wrote:

Inflation was contributed to by supply chain disruptions but it was not the primary cause. It’s always monetary policy (borrowing, printing too much money chashing too few goods). Prices do and will come down when demand falls. Certainly not to pre pandemic levels due to rising costs to produce but supply and demand will ultimately dictate price. Your beloved EVs are an example.

Triple G

Effate wrote:

Inflation was contributed to by supply chain disruptions but it was not the primary cause. It’s always monetary policy (borrowing, printing too much money chashing too few goods). Prices do and will come down when demand falls. Certainly not to pre pandemic levels due to rising costs to produce but supply and demand will ultimately dictate price. Your beloved EVs are an example.

If that were true that putting extra money into consumers hands caused initial inflation (the Covid disruption happened first to which federal aid reacted) and continues to fuel inflation, then the M2 money supply would be staying at the elevated rate. But, they aren't. The supply in contracting under the Biden Administration in a measured and managed rate so that a too quick contraction doesn't return the country to a soft landing, hard landing, or even recession threat. Very few are talking about the labor supply being tighter than usual as another cause of inflation. It (plus enjoying record profits) just may be what's keeping prices elevated. Let's hope the Fed keeps the appropriate pressure on interest rates so that wages increase from the corp.retaine earnings rather than even higher prices.

The argument of disruption or too much aid will be going on for years, but the Federalist Society and alt right media are only pushing the money supply cause.

https://www.fool.com/investing/2024/04/07/us-money-supply-great-depression-big-move-stocks/#:~:text=Based%20on%20the%20latest%20monthly,drop%2Doff%20since%20March%202022.

https://www.nber.org/digest/20239/unpacking-causes-pandemic-era-inflation-us

https://www.crfb.org/papers/cost-trump-and-biden-covid-response-plans#:~:text=By%20our%20estimates%2C%20the%20additional,estimate%20at%20nearly%20%243.1%20trillion.

https://www.heritage.org/budget-and-spending/report/the-road-inflation-how-unprecedented-federal-spending-spree-created

https://www.brookings.edu/wp-content/uploads/2023/06/WP86-Bernanke-Blanchard_6.13.23-1.pdf

ArtzDarkroom Loc: Near Disneyland-Orange County, California

Linda From Maine wrote:

Comments? Conclusions?

The chart is from this study.

Where's the chart that shows how much legislation they signed?

DennyT Loc: Central Missouri woods

Effate wrote:

Inflation was contributed to by supply chain disruptions but it was not the primary cause. It’s always monetary policy (borrowing, printing too much money chashing too few goods). Prices do and will come down when demand falls. Certainly not to pre pandemic levels due to rising costs to produce but supply and demand will ultimately dictate price. Your beloved EVs are an example.

Then why didn’t we face an increase in inflation when trump pumped $8 trillion in deficit spending. Reagan “ tripled” the national debt in his time in office .
Yet he got credit for defeating inflation .

Why not? Because inflation is always caused by supply demand issue not monetary policy.
Over and over we have had spending increases with no corresponding inflation - by both parties .

All you doing is trying to mask your politics.

Truth Seeker Loc: High Mountains of the Western US

Linda From Maine wrote:

Comments? Conclusions?

The chart is from this study.

Triple G

DennyT wrote:

Then why didn’t we face an increase in inflation when yrp pumped $8 trillion in defict spending.

Why not? Because inflation is always caused by supply demand issue .
Over and over we have had downing increases with no corresponding inflation - by both parties .

All you doing is trying to mask your politics.

Add a little bit of truth ... prices are a function of supply and demand, and then skew it in the direction of anti-democrat actions. Got it.

Truth Seeker Loc: High Mountains of the Western US

Linda From Maine wrote:

Comments? Conclusions?

The chart is from this study.

No accountability. Instead of "We ThePeople" it is "Screw The People"!

https://justthenews.com/government/biden-administration-implements-rule-making-it-more-difficult-fire-federal-employees

Truth Seeker Loc: High Mountains of the Western US

DaveO wrote:

Nah! He's not an extreme rightie!

Effate Loc: El Dorado Hills, Ca.

DennyT wrote:

Then why didn’t we face an increase in inflation when trump pumped $8 trillion in deficit spending. Reagan “ tripled” the national debt in his time in office .
Yet he got credit for defeating inflation .

Why not? Because inflation is always caused by supply demand issue not monetary policy.
Over and over we have had spending increases with no corresponding inflation - by both parties .

All you doing is trying to mask your politics.

I am no expert and by what you are preaching you certainly aren’t but this is a screen shot from a report from the International Monetary Fund: I would bet most competent economists would agree

Triple G

Effate wrote:

I am no expert and by what you are preaching you certainly aren’t but this is a screen shot from a report from the International Monetary Fund: I would bet most competent economists would agree

The printing of money was not a lax long term money supply policy, but a deliberate policy to increase aid while US residents were struggling through Covid. Covid disruptions came first affecting the supplies of goods (abrupt loss of supply while demand remained constant resulting in a need for aid to allow for continuation of economy in general. The aid was generated and approved by by-partisan support under both Trump and Biden.

The next paragraph in your post speaks the truth about the causes and their ranking as a result of Covid. Once money supply was expanded, it needs a constant watchful eye that it doesn't contract too quickly. MAGA wants to point the finger at Biden's administration's Inflation Reduction Act and infrastructure bills as inflationary, yet the money supply continued to contract even with those spending bills. That's because they target economic growth that pays for itself quickly in supply and also increases the demand due to the projects to where economies of scale in lumber (increased construction), EV batteries, and computer chips are decreasing significantly. This is all creating jobs and lessening dependence on China and other trade partners. I don't see any bad news in any of those realities and want the trend to continue.

https://www.infrastructurereportcard.org/wp-content/uploads/2016/10/ASCE-Failure-to-Act-2016-FINAL.pdf

Turning projected surpluses into major deficits is not just a Newsom legacy, it remains for Bush too. I trust the Democrat federal administrations much more than the republicans' track records.

https://www.cbpp.org/research/getting-the-facts-straight

Effate Loc: El Dorado Hills, Ca.

Triple G wrote:

The printing of money was not a lax long term mone... (show quote)

Putting that money out there during Covid may have been partially driven by a genuine need by some individuals and businesses due to extreme shutdown policies and supply chain issues but the haphazard manner it was dumped was wrought with fraud to the tune of billions, sending money to prison inmates, you and me and many others on the hog members who had no business receiving checks. I know many people personally who were able to double dip on unemployment (federal and state) who were being paid more to stay home than their working salaries. I would venture to say some are still at home feeling entitled.

DennyT Loc: Central Missouri woods

Effate wrote:

I am no expert and by what you are preaching you certainly aren’t but this is a screen shot from a report from the International Monetary Fund: I would bet most competent economists would agree

1. Then why didn’t we see inflation during trump administration who overspent $8+ trillion in four years and why didn’t we have inflation when Reagan trippled the national debt in four years ?

And and read the unhighlighted portion of you screen shot. It precisely describes what happened to caused this round of inflation .

Ps:you should provide a link to you screen shot so that we may read the entire piece not just what you want .

Triple G

Effate wrote:

Putting that money out there during Covid may have... (show quote)

I agree with that. I believe we got the aid as retirees because our SS is a fixed amount and many in our age group would move nervously to savings mode when the economy needed spending mode. It was a money in circulation decision, not individual recipient need. The economy needed it.

There was no way to do a means tested aid program because there is no system by which to do that. I'm glad the government doesn't have daily at the moment data on my finances, but it does create the question as to whether there should be one for just such occasions.

Hopefully, we learned that we aren't very nimble when it comes to being able to do something on a nation-wide scale. There were very few options for the Fed government to employ. They ended up using IRS records because they were the most up to date to develop a recipients list, but there weren't many options for controls. Likewise, the unemployment systems and varying policies of each state as to pay replacement made it almost impossible to create a "make whole" formula for everyone. Therefore, the amount ended up giving a windfall to some and short-changed others. I hope we don't need to ever exercise that option again. It did keep the economy growing; just could have achieved the same with less. Who and how to know the appropriate level is Monday morning quarterbacking.

https://budgetmodel.wharton.upenn.edu/issues/2020/5/5/long-run-economic-effects-of-cares-act