You are conveniently forgetting money pumped into the system by Biden ,Congress and Fed. Your approach to economics is worthy of a seventh grader or maybe AOC. Nobody said Biden caused global inflation ,but he did cause inflation in our country. Produce a quote or go back to junior high.
Uh Oh! In a CNN poll only two percent think Brandon’s economy is good!
- Thread starter grbcane
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So if all the money pumped into the system caused U.S. inflation and you claim "No body said Biden caused global inflation", what was the cause of global inflation? Inflation in most countries has soared to multi-year highs.
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No thats not entirely correct. No one on here has claimed ( maybe your reading) that supply disruptions didn't play a role in the current inflation issue. We are saying that the AMOUNT of money PRINTED and distributed COUPLED caused unprecedented demand / spending at a time of either a) limited or reduced supplies or b) supply unchanged and that this LEVEL of printing dollars has weakened the dollar which means it takes MORE to BUY the same quantity of goods and services. Mike people aren't stupid we know there are and still are supply disruptions . Bad policies made some of those supply disruptions WORSE than they needed to be. An example would be the Ports in California where the did NOT adjust their regulations during and after lockdowns.
Now Supply chain disruptions are occuring with Shanghai and chuncks of China locked down.
Either way you end up with inflation but that LEVEL of printing and distributing dollars made it worse.
Same for the assault on Energy Industry. If that didn't happen America would have been happily pumping away and drilling. But Biden went after them in his first days and that had an impact on their desire to take on RISK and finance that RISK.
How was he Trump first? Be specific. You have a body of 4 years to cite this selfishness you speak of.
This. Actually Biden campaigned on destroying fossil fuel industry ( exact quote). This effected oil futures and money spent on exploring. By the time he took office, the energy inflation chain reaction had already started.
I'm wide awake and he isn't my hero. I'm all about results and Biden's policies have all failed. If he worked for me he would be fired
Never before has a U.S. President so willfully catered to an American adversary and so effortlessly sacrificed American values and interests as the entire world watched him in Helsinki. His performance highlighted not only a lack of impulse control and poor judgement but also a consistent and inexplicable willingness to submit to Russian interests. This was not a display of "America First" but rather a disturbing performance by a man who put himself and Russia above American interest and values. He also continues, by various schemes, to try and overturn the election.
Lol. Supply chain interruptions. Isn’t that part of Buttegeig’s realm? The one that took 3-4 months off for maternity care? In the middle of a crisis?
lol. He’s also the one claiming to be green by riding his bike to work—only to be videoed riding around the corner and jumping into a limo while someone takes his bike and puts it in a van. Real honest and sincere people in this admin.
"Had it not been for Covid, Trump would likely be president and we would still be an energy independent exporter, we would still have low inflation, contin ued job growth, low unemployment and rising hourly wages". You can't predict future economic conditions and Biden's failures do not exonerate Trump.
I asked you what was the cause of global inflation. Why are you refusing to answer?
Sounds like the phony videos Kerry made of himself "fighting" in Vietnam.
Last time I checked, this thread was about the 2% who think this economy is good.
Why are you stalling and refusing to answer my question as to the cause of global inflation?
Cost of energy, cost of food. I don't know enough about their monetary policies to comment. I'm more concerned with our country and our poor leadership.
Are you SERIOUSLY back to the FULLY DEBUNKED RUSSIA BULLSHIT? Are you kidding us right now with utter nonsense.?
Trump had a very sound principle; GETTING ALONG IS BETTER THAN NOT and NOW LOOK AT RUSSIA in UKRAINE so I would say HE HAD A POINT.
Bro you are so dissapointing..........................
"Tell Vladimir that AFTER the election I'll have more flexibility"
Sincerely,
Barack Obama
Because no company is going to take on RISK when the RISK can not be quantified and is exascerbated by the US Government.
So the cost of energy and food is the cause of global inflation everywhere in the world except the U.S. where it is all due to Biden policies. Is that your contention?
Touche' nor are we having supper with Trump so when acts like an asshole I don't care ( I don't like it either) but if his policies are working I don't care.
Here is your answer and it is ALWAYS THIS ANSWER!
US & WORLD ECONOMIES ECONOMIC THEORY
What Are the Causes of Inflation?
Cost-push and demand-pull explained
•••
BY
KIMBERLY AMADEO
Updated February 04, 2022
REVIEWED BY
ERIKA RASURE
There are two main causes of inflation: demand-pull and cost-push. Both are responsible for a general rise in prices in an economy, but they each work differently. Demand-pull conditions occur when demand from consumers pulls prices up, while cost-push occurs when supply costs force prices higher.
You may find some sources that cite the third cause of inflation as expansion of the money supply. The Federal Reserve explains that it's a type of demand-pull inflation, not a separate cause of its own.12
Key Takeaways
- There are two major types of inflation: demand-pull and cost-push.
- Demand-pull inflation occurs when consumers have greater disposable income. Having more money to spend allows people to want more products and services.
- Expansionary fiscal and monetary policies, consumer expectation of future price increases, and marketing or branding can increase demand.
- Cost-pull inflation happens when supply decreases, creating a shortage. Producers raise prices to meet the increasing demand for their goods or services.
- An increase in wages, monopoly pricing, natural disasters, government regulations, and currency exchange rates often decrease supply vis-à-vis demand.
Demand-Pull Inflation
Demand-pull inflation is the most common cause of rising prices. It occurs when consumer demand for goods and services increases so much that it outstrips supply. Producers, meanwhile, can't make enough to meet demand and may not have time to build the manufacturing needed to boost supply. They also may not have enough skilled workers to make it, or the raw materials might be scarce.3If sellers don't raise the price, they will sell out and eventually come to realize they now have the luxury of hiking up prices. If enough sellers do this, they create inflation.
There are several circumstances that create demand-pull inflation. For example, a growing economy affects inflation because when people get better jobs and become more confident, they spend more.45
As prices rise, people start to expect inflation. That expectation motivates consumers to spend more now to avoid future price increases. That further boosts growth. For this reason, a little inflation is good. Most central banks recognize this. They set an inflation target to manage the public's expectation of inflation. The U.S. central bank, the Federal Reserve, has set a target of 2% as measured by the core inflation rate. The core rate removes the effect of seasonal food and energy cost increases.6
Another circumstance is discretionary fiscal policy, which is when the government either spends more or taxes less. Putting extra money in people's pockets increases demand and spurs inflation.
Factors of Demand-Pull
There are a few key factors that can play roles in causing demand-pull inflation, as outlined below.Marketing and New Technology
These factors create demand-pull inflation for specific products or asset classes. The asset inflation that results in can drive widespread price increases. Asset and wage inflation are types of inflation. For example, Apple uses branding to create demand for its products, which allows it to command higher prices than the competition. New technology also occurred in the form of financial derivatives. These new products, for instance, created a boom-and-bust cycle in the housing market in 2005.7Over-Expansion of the Money Supply
This factor can also create demand-pull inflation. The money supply is not just cash, but also credit, loans, and mortgages. When the money supply expands, it lowers the value of the dollar. When the dollar declines relative to the value of foreign currencies, the prices of imports rise. That increases prices in the general economy.The money supply can increase through expansionary fiscal policy or expansionary monetary policy, which is enacted by the federal government. These policies expand the money supply through deficit spending by pumping money into certain segments of the economy, creating demand-pull inflation in those areas. The policies can delay the offsetting taxes and add them to the debt. This government action has no ill effect until the ratio of debt to gross domestic product approaches 90%.8
Occasionally, the government can create inflation simply by printing more cash. Venezuela did this between 2013 and 2019, creating hyperinflation and the money effectively became worthless.
How to Address Money Supply Issues
The Federal Reserve controls expansionary monetary policy. It expands the money supply by creating more credit with the use of its many tools. One tool is lowering the reserve requirement, the amount of funds banks must keep on hand at the end of each day. The less the banks have to keep on reserve, the more they can lend.9Another tool is lowering the Fed funds rate. That's the rate banks charge each other to borrow funds to maintain the Federal Reserve requirement. This action also lowers all interest rates, which allows borrowers to take out a bigger loan for the same cost. Lowering the fed funds rate has the same effect, but it can be a lot easier and, as a result, is done much more often. When loans become cheap, too much money chases too few goods and creates inflation. The prices of everything increase, even though neither demand nor supply has changed.10
Cost-Push Inflation
The second cause is cost-push inflation. It only occurs when there is a supply shortage combined with enough demand to allow the producer to raise prices.3There are several contributors to inflation on the supply side. For example, global supply chain disruptions, like the one caused by the pandemic in 2020, can lead to cost-push inflation.
Cost PUSH inflation would have been LIMITED had the DEMAND PULL FACTORS NOT BEEN SO EXTREME!
Thats it man............And Mike there weren't supply issues across every single sector or service.
See below for the FINAL ANSWER TO MIKE who REFUSES to acknowledge the monetary supply side which was BY FAR THE MAIN CULPRIT
Biden's policies raised energy prices leading to increased cost of heating homes, delivering anything that goes by truck, train or plane.Biden's excessive spending and Fed policies put too much money in the system at a time when supply chains were disrupted so prices went up. Not enough people want to work so wages have to go up making inflation even worse. So yes Biden and Fed policies are mostly responsible with some exacerbation by Covid and the war. Ask any economist with a brain.
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While Joe Biden failed to stand up to Russia during his 47 years in office, President Trump has taken tougher action against Russia than any past Administration.
President Trump and his administration have been tougher on Russia than any past administration.
- President Obama's Secretary of Defense Robert Gates says it's "true" that President Trump's administration has been the toughest on Russia.
- President Trump has repeatedly pushed back against Russian attempts to threaten American institutions, including imposing sanctions on hundreds of individuals and entities suspected of attempted election interference.
- To hold Russia accountable for their repeated violations, President Trump withdrew the United States from both the Intermediate-Range Nuclear Forces (INF) Treaty and Open Skies Treaty.
- The Trump Administration imposed harsh penalties in response to Russia's evasion of sanctions against North Korea, Syria, Iran, and Venezuela.
- President Trump placed strong sanctions on the Nord Stream 2 pipeline, warning Germany and other nations about the dangers of relying on Russian energy.
Sounds like ass kissing to me...............
My contention was that inflation in most countries has soared to multi-year highs and are not solely due to Biden policies which has been the claim of many on here.
Took Putin's word over that of his own Intel agencies on Russian election interference in front of the whole world at the Helsinki Summit. Sounds like ass kissing to me.....! BTW. How are Trump's efforts to overturn the election working out?
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Mike nobody said solely but his war on energy screwed up energy markets in many developed nations
What exactly was the Russian election "interference"? Facts.
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What do Trump's efforts to overturn the election have to do with Biden's economy. No matter what the topic is your responses always seem to circle back to Trump. Libertarians like me believe in the future. Democrats like you believe in the past because you will soon be out of power as a result of your current failures
Are you referring to the same very intelligence agencies that found out the Steele Dossier was fake yet kept on investigating? The intelligence agencies that said there was Russian interference in the 2016 election while Obama was in charge? Those the people you talking about? The FBI agents that REALLY interferred and we all saw their texts. Those people?
That's the same Robert Gates who said Brandon has been on the wrong side of every issue since he's known him. He was the only Cabinet member opposed to taking out Bin Laden
That was one of my responses to "Trump always said, "America First". Is trying to overturn the election Putting "America First"? If you truly believe in the future, it's time to move past Trump and stop always being first in line to defend him!
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Waiting for you to give facts from the corrupt CIA explaining the Russian interference in the 2016 election that were ignored.
He can’t - neither can cems , cd wrong, Raoul, pineapple or any other liberal on this site
And generally when there’s inflation in the USA it affects the global economy as well considering the tie-in with the petro-dollar. When America sneezes the World catches a cold.
They talk the talk but can't walk the walk. No surprise there. Keep trying Cems. You'll get it some day.
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