Inflation up to 7.5% from 1.4% when Trump left.

[NO.SHORECANE]

hit me with a link then and i'll tuck tail and waddle home

I don't know how to link-elderly tech Neanderthal, but I gave you the reference- Summers interview on Amanpour and Co December 17 2021.

 

[Allied2651]

You'll rarely find me communicating anywhere without having thought through it first. I have google alerts for any new content by Lawrence S because his insight is so frequently high caliber. He has come to UM to give a talk a couple times over the last decade. I know the interview he gave that you're referencing and I know that he did not say what you attributed to him. Not saying you are a liar, you probably got it from someone else who you trusted to be normally accurate. What Lawrence has said about inflation is that you cannot separate it from either its pandemic related causes or its monetary policy related causes.

Wake - I read a Yahoo finance article where the author had the pandemic as one of the reasons triggering this inflationary period however he also emphasized government runaway spending as a big issue. Seemed like a reasonable set of answers and a well written article. Just another opinion article and we all know the saying about opinions.

 

[HJCane]

Community colleges are great and a key part of our education system. I can only speak to what we teach at the U and at Duke. I'm not concerned about our debt what so ever. I understand how costs flow up and down a supply chain. The unemployment benefits were not meaningfully related to the labor shortages, which is what Economics 401 common sense would suggest was likely the case and also is what oodles of econometric analysis comparing before and after data demonstrates. You cannot simply total the amount of spending in a stimulus spending package up and pretend as though that the bigger the # the more the danger of inflation. What the money is being allocated towards is an essential component. Some allocations will work to reduce inflation, some to increase.

When a Government pays wages twice the going rate to workers to STAY home and not go to work they have put themselves in DIRECT competition with the private sector. The private sector however can not compete with those wages so they had no choice but to cave in a bit and raise wages to lure folks back to work. And then they raised prices and cut the amount of service or goods they provided. Common business sense lacking in the Democrat party

 

[ddimaggio]

Dude we had a 90% top level marginal income tax during world war 2 and a 65-70% top marginal rate for the most prosperous and highest growth economic decades in the history the country.

I’m a tax expert. Those marginal rates were not effective rates during the time frames referenced
The question remains , currently , how many people who pay no income taxes at all are voting for people who want to cut income tax rates ? None
They invariably want to increase tax rates to fund give away programs that benefit them
Their motto ? Cancel Student debt , cancel mortgages cancel rent ! Let the government pay . Pay with artificial money which then increases inflation which is a double whammy on those poor schmucks who are paying the freight.

 

[HJCane]

Well at least you admit that our rate of inflation is far greater than the European rate . Progress
But they are not without blame either . They are a spendthrift group . Except for Germany. Germany is conservative fiscally. That’s why their rate is about half of ours ! Half !
And you keep mentioning the pandemic. The pandemic which Brandon promised to stop ? The one that resulted in 500,000 deaths on his watch ? The one he said Trump mishandled, when his death rate far exceeds Trumps ? Notice he doesn’t carry that note pad in his wallet with the deaths anymore?
The pandemic had an effect on supply. True . But the policies employed exacerbated the problem. The democrats own this. Inflation in Europe is very bad . Inflation in the USA ? Disaster!

You can't compare other countries to the USA because we are the largest consumers in the world. European nations have many other issues economically .

 

[ddimaggio]

You can't compare other countries to the USA because we are the largest consumers in the world. European nations have many other issues economically .

Well you can compare the Evaporation of
wealth here versus there !
The liberal morons say well the wages are increasing too.
Huh ?
I get no wages . I’m retired . It’s absolutely not relevant to me . In fact increased wages hurt me financially. It gins up the inflation spiral !
Actually makes me poorer

I wasn’t the one comparing us to Europe or any other economy, but I was tired of listening to the what about the rest of the world nonsense. It’s just factually incorrect.
We just spend , we just tax , we just print money , we just borrow from China and people are surprised that everything isn’t Hunky Dory ?
But the most worrisome aspect of this is that the democrats are giddy about it . The cheer this fiscal debacle. It redistributes wealth and enforces the dynamic of state control and reliance.
Europe? A lost cause .
We saved their ass , rebuilt their economies, and now ? They cheat us on military costs

 

[miamimike]

Well at least you admit that our rate of inflation is far greater than the European rate . Progress
But they are not without blame either . They are a spendthrift group . Except for Germany. Germany is conservative fiscally. That’s why their rate is about half of ours ! Half !
And you keep mentioning the pandemic. The pandemic which Brandon promised to stop ? The one that resulted in 500,000 deaths on his watch ? The one he said Trump mishandled, when his death rate far exceeds Trumps ? Notice he doesn’t carry that note pad in his wallet with the deaths anymore?
The pandemic had an effect on supply. True . But the policies employed exacerbated the problem. The democrats own this. Inflation in Europe is very bad . Inflation in the USA ? Disaster!

You keeping trying to make this political but I'm no Biden fan and not here to defend him. I keep mentioning the pandemic because it has killed over 5m worldwide. "The pandemic had an effect on supply". No Shit" When demand exceeds supply, prices go up. The supply issue is global. Another factor that contributes to inflation is political uncertainty. Our uncertainty comes primarily because one party has devolved into a cult. That would be the party marching zombie-like to the tune of a disgraced and disgraceful former president. The party working to sabotage democracy, extolling and defending a mob that terrorized the seat of our government. There is no argument that inflation hurts consumers. Neither is there an argument that actively seeking to undermine the country hurts us all even more grievously. Biden policies did not not cause global inflation so lose the political blame and look at the total picture- a global demand/supply imbalance that has resulted in worldwide inflation!

 

[wake4law_cane4life]

I’m a tax expert. Those marginal rates were not effective rates during the time frames referenced
The question remains , currently , how many people who pay no income taxes at all are voting for people who want to cut income tax rates ? None
They invariably want to increase tax rates to fund give away programs that benefit them
Their motto ? Cancel Student debt , cancel mortgages cancel rent ! Let the government pay . Pay with artificial money which then increases inflation which is a double whammy on those poor schmucks who are paying the freight.

Yes I've heard you say that before, and I believe you. Which is why I know that you know you're blowing hot air with these claims. Probably works on others, but not here. When you say they were not effective rates, you are simply saying that during those time periods there weren't really many people so wildly rich that they triggered the top rate. The relevant point is that today's richest households would have the effective tax rates I quoted during those time periods.

 

[wake4law_cane4life]

When a Government pays wages twice the going rate to workers to STAY home and not go to work they have put themselves in DIRECT competition with the private sector. The private sector however can not compete with those wages so they had no choice but to cave in a bit and raise wages to lure folks back to work. And then they raised prices and cut the amount of service or goods they provided. Common business sense lacking in the Democrat party

Sorry but you're wrong. And I don't understand this "common sense" thing that pops up so much. You think we award graduate degrees in fields that can be understood just by using "common sense" ? WTF lol. The data is absolutely unambiguous that the extra unemployment benefits had little to zero impact on the labor market. We know this because those benefits expired. And they did not rush back to work when that happened. Little to no labor data changes. In state after state after state this is what happened- the benefits expired, the labor market remained unchanged. If you want a "common sense" type answer I can simplify it as best I can like this- a job is an ongoing and stable income source, rational people do not compare that with unemployment benefits of $300 a week that they know are temporary and will soon expire.

 

[ddimaggio]

Yes I've heard you say that before, and I believe you. Which is why I know that you know you're blowing hot air with these claims. Probably works on others, but not here. When you say they were not effective rates, you are simply saying that during those time periods there weren't really many people so wildly rich that they triggered the top rate. The relevant point is that today's richest households would have the effective tax rates I quoted during those time periods.

Nope . There were numerous tax avoidance plays back then . Again I studied Tax Law back in the day. You could offset active income with passive losses , accelerate depreciation, etc
Plus the average income levels rarely triggered top brackets .
But that’s not the point . I liked the tax rate which was in effect before 1913 and the horrible 16th amendment.
0%
Let’s go back to that !
Just because we had a wacky top rate which virtually no one paid doesn’t mean that the rates in effect now are reasonable. Any attempt to reduce taxes is met by outcry’s from those who aren’t paying them . People like Bernie want to give the vote to prisoners! You think that those wonderful members of our society are going to vote to decrease taxes ?
Tax rates are too high , spending by the government is excessive. Period
I get it , liberals, progressives and democrats today are focused on increased taxes , and absurd spending . Except for Manchin. He’s not totally crazy . Only a little

 

[Allied2651]

Sorry but you're wrong. And I don't understand this "common sense" thing that pops up so much. You think we award graduate degrees in fields that can be understood just by using "common sense" ? WTF lol. The data is absolutely unambiguous that the extra unemployment benefits had little to zero impact on the labor market. We know this because those benefits expired. And they did not rush back to work when that happened. Little to no labor data changes. In state after state after state this is what happened- the benefits expired, the labor market remained unchanged. If you want a "common sense" type answer I can simplify it as best I can like this- a job is an ongoing and stable income source, rational people do not compare that with unemployment benefits of $300 a week that they know are temporary and will soon expire.

I think the key word here is the word, " rational". A lot of the pain that business owners are feeling are are businesses as an example in in the service industries which make up for a lot of employee shortages. Many of these people represent a step above day labor, compound that with a poor work ethic, limited education and an irresponsible attitude towards themselves and others, you ultimately have a person that is making poor life decisions. It is no surprise to me that the decisions of not returning to the workplace is a reality. In my opinion I agree with you that the stimulus had little to do with employees not returning back to work.

 

[wake4law_cane4life]

Nope . There were numerous tax avoidance plays back then . Again I studied Tax Law back in the day. You could offset active income with passive losses , accelerate depreciation, etc
Plus the average income levels rarely triggered top brackets .
But that’s not the point . I liked the tax rate which was in effect before 1913 and the horrible 16th amendment.
0%
Let’s go back to that !
Just because we had a wacky top rate which virtually no one paid doesn’t mean that the rates in effect now are reasonable. Any attempt to reduce taxes is met by outcry’s from those who aren’t paying them . People like Bernie want to give the vote to prisoners! You think that those wonderful members of our society are going to vote to decrease taxes ?
Tax rates are too high , spending by the government is excessive. Period
I get it , liberals, progressives and democrats today are focused on increased taxes , and absurd spending . Except for Manchin. He’s not totally crazy . Only a little

You're saying no one paid those rates back then and I am saying yeah that's kind of the point...The tax rates were significantly different. The very existence of those different rates in the law shaped people's economic behaviors. That's what policy is meant to do- shape behaviors. As far as liking the tax rate in 1913, It's hard to even respond to that. Guessing you would not enjoy the quality of life, life expectancy, or even the economy. I respect your expertise but if you think expertise is something to give deference to then you should take more seriously the alarms being sounded by political economy that wealth disparity beyond a certain spread has been an empire killer throughout human history and we're in the danger zone here.

 

[wake4law_cane4life]

I think the key word here is the word, " rational". A lot of the pain that business owners are feeling are are businesses as an example in in the service industries which make up for a lot of employee shortages. Many of these people represent a step above day labor, compound that with a poor work ethic, limited education and an irresponsible attitude towards themselves and others, you ultimately have a person that is making poor life decisions. It is no surprise to me that the decisions of not returning to the workplace is a reality. In my opinion I agree with you that the stimulus had little to do with employees not returning back to work.

It is a nasty combination of both sides of that dynamic. Small business owners built business models based on certain kinds of market dynamics and wages and labor etc and those dynamics suddenly shifting last summer and people not wanting to come back was a deadly threat to them. At the same time, these service industry workers experienced life changing/perspective altering conditions at work in 2020- many were fired or had hours cut to nearly none the moment the business started feeling heat from reduced demand. They learned they were expendable fungible cogs to the business. It should not be a surprise that a lot of people in that sector were not interested going back.

 

[Allied2651]

It is a nasty combination of both sides of that dynamic. Small business owners built business models based on certain kinds of market dynamics and wages and labor etc and those dynamics suddenly shifting last summer and people not wanting to come back was a deadly threat to them. At the same time, these service industry workers experienced life changing/perspective altering conditions at work in 2020- many were fired or had hours cut to nearly none the moment the business started feeling heat from reduced demand. They learned they were expendable fungible cogs to the business. It should not be a surprise that a lot of people in that sector were not interested going back.

Covid affected everyone, workers were laid off, businesses closed. Fungible cogs? What about the business owner that had his life savings lost, did all the right things along the way, even paid his fair share of taxes. These are the people that employed this level of labor that either repurposed themselves into other industries or never went back to work and are living off others. My condolences go out to the educated business owner that lost his business not to the labor that never returned except maybe to the streets of San Francisco.

 

[HJCane]

Well you can compare the Evaporation of
wealth here versus there !
The liberal morons say well the wages are increasing too.
Huh ?
I get no wages . I’m retired . It’s absolutely not relevant to me . In fact increased wages hurt me financially. It gins up the inflation spiral !
Actually makes me poorer

I wasn’t the one comparing us to Europe or any other economy, but I was tired of listening to the what about the rest of the world nonsense. It’s just factually incorrect.
We just spend , we just tax , we just print money , we just borrow from China and people are surprised that everything isn’t Hunky Dory ?
But the most worrisome aspect of this is that the democrats are giddy about it . The cheer this fiscal debacle. It redistributes wealth and enforces the dynamic of state control and reliance.
Europe? A lost cause .
We saved their ass , rebuilt their economies, and now ? They cheat us on military costs

It was aimed at Mike dimaggio not you buddy

 

[HJCane]

Sorry but you're wrong. And I don't understand this "common sense" thing that pops up so much. You think we award graduate degrees in fields that can be understood just by using "common sense" ? WTF lol. The data is absolutely unambiguous that the extra unemployment benefits had little to zero impact on the labor market. We know this because those benefits expired. And they did not rush back to work when that happened. Little to no labor data changes. In state after state after state this is what happened- the benefits expired, the labor market remained unchanged. If you want a "common sense" type answer I can simplify it as best I can like this- a job is an ongoing and stable income source, rational people do not compare that with unemployment benefits of $300 a week that they know are temporary and will soon expire.

They didn't rush back until employers used incentives in the form of signing bonuses and higher wages to lure them back. Maybe you aren't hiring in todays real world. Drive by any McDonalds.

 

[wake4law_cane4life]

They didn't rush back until employers used incentives in the form of signing bonuses and higher wages to lure them back. Maybe you aren't hiring in todays real world. Drive by any McDonalds.

Yes thats how capitalism works. It's pretty great.

 

[wake4law_cane4life]

Covid affected everyone, workers were laid off, businesses closed. Fungible cogs? What about the business owner that had his life savings lost, did all the right things along the way, even paid his fair share of taxes. These are the people that employed this level of labor that either repurposed themselves into other industries or never went back to work and are living off others. My condolences go out to the educated business owner that lost his business not to the labor that never returned except maybe to the streets of San Francisco.

Well i'm not at war with labor or business owners so I feel pretty bad for both.

 

[HJCane]

Yes thats how capitalism works. It's pretty great.

Capitalism works best when left alone. This is an artificial Government interference causing DISRUPTIONS in the markets.

 

[grbcane]

Inflation is caused by a demand /supply imbalance-too much demand, too little supply. This is a GLOBAL problem not specific to the U.S. Nothing to do with Biden or Trump. Look up the info and quit posting BS!

Not all democrats are in denial .

White House takes flak from Democrats left and right over inflation argument - Washington Examiner

Democrats inside and outside the White House disagree with the Biden administration’s official line that the pandemic and supply chain struggles are the sole drivers of the country’s inflationary woes. Problems on the supply side of the economy have driven up prices. But high-profile Democratic...

www.washingtonexaminer.com

 

[6882]

Not rocket science, you pump trillions out of thin air into this country and the rest of the world and there’s less than half a billion people in this country and less than 8 billion people in the world and shits going to happen. Do the math dummies.

hypotheticly, every person in this country should be multi millionaires and we should have enough money left over to have the greatest infrastructure since the Roman empire.

so…where is it? Not enough tax dollars? Gtfoh.

 

[wake4law_cane4life]

Not rocket science, you pump trillions out of thin air into this country and the rest of the world and there’s less than half a billion people in this country and less than 8 billion people in the world and shits going to happen. Do the math dummies.

hypotheticly, every person in this country should be multi millionaires and we should have enough money left over to have the greatest infrastructure since the Roman empire.

so…where is it? Not enough tax dollars? Gtfoh.

Your math is off by several digits.