Do you trust a government that can't balance their own budget to write laws telling people how they are supposed to get loans, let alone anything financially responsible?
@Rifler and I agree on something for once!
That would mean the current administration would actually have to understand business and economics AND work with them not just dictate to them
I trust the people loaning out the money to decide how people get loans, with the caveat that they loan out their money.
Agree with this...
Not really. There are multiple actual causes, but money supply increase by both monetary and fiscal policy is the leading cause, compounded by poor energy production policy and supply chain issues. We also have a classic wage price spiral that has been initiated by multiple factors, with fiscal policy being a major contributor.
Another way to look at it is that Congress gave bankers control of our money supply so they can always bail themselves out if they need to.
It shouldn't be left entirely up to the Fed. Congress needs to act to balance the budget. Federal spending should be no more than about 18% of gdp. When Clinton left office Federal spending was about 18%, very good. The 50 year avergae is 20.8%.
www.cbo.gov
Excellent post. It can't be left to the Fed because the Fed doesn't control fiscal policy or energy policy. The Fed appears to be doing what it can until the next Congress is seated. While there's little hope the next Congress will show fiscal responsibility, they might at least show a little fiscal restraint. The GOP has typically been extremely lazy when it comes to solving problems. That said, sometimes doing nothing is better than taking action, which we've got recent evidence of.It shouldn't be left entirely up to the Fed. Congress needs to act to balance the budget. Federal spending should be no more than about 18% of gdp. When Clinton left office Federal spending was about 18%, very good. The 50 year avergae is 20.8%.
Federal spending was 30% of gdp in 2021. That's the most on record since at least 1972 by a wide margin (that's how far back the CDC data I'm looking at goes). Even in the 2009 great recession, the next highest, we only hit about 24% Federal spending.
The problem is the supply side. Employment hasn't even got back to pre-pandemic levels in terms of actual number employed. That won't be helped by raising rates or raising taxes.
The Budget and Economic Outlook: 2022 to 2032
At a Glance The Congressional Budget Office regularly publishes reports presenting its baseline projections of what the federal budget and the economy would look like in the current year and over the next 10 years if current laws governing taxes and spending generally remained unchanged. This...
Only other time you find spending that high is middle of World War 2 (‘43-‘45), and 85% of that spending was on the war.
To the ultimate detriment of the very consumer it was supposedly meant to help.
Who stopped you from doing the stockpiling you should have? Or are you saving money on storage?
Are you saying Trump was right? Your post sounds an awful lot like you are paraphrasing Make America Great Again, and you are a proponent of essential goods being produced domestically.
If he would have acted on any of that policy you'd have a point.
Go live in the woods and jerk it to ayn rand.
Seriously, why isn’t the duty to pay for stockpiling goods you want and need on you?
So much deflection.
It’s a moving target as a business. Gouging or profiteering is just short term strategy to account for future cost increases. Look at the stock market- these companies have lost 20% of value. That’s not just something to brush off.
Actually he did. Tariffs, energy policy, and even foreign policy.
That will definitely lag. Banks have become addicted to the Fed window instead of leveraging savings.
Hopefully soon. My Dad can’t wait to put his money into a CD paying 2%.
It shouldn't be left entirely up to the Fed. Congress needs to act to balance the budget. Federal spending should be no more than about 18% of gdp. When Clinton left office Federal spending was about 18%, very good. The 50 year avergae is 20.8%.
Federal spending was 30% of gdp in 2021. That's the most on record since at least 1972 by a wide margin (that's how far back the CDC data I'm looking at goes). Even in the 2009 great recession, the next highest, we only hit about 24% Federal spending.
The problem is the supply side. Employment hasn't even got back to pre-pandemic levels in terms of actual number employed. That won't be helped by raising rates or raising taxes.
The Budget and Economic Outlook: 2022 to 2032
At a Glance The Congressional Budget Office regularly publishes reports presenting its baseline projections of what the federal budget and the economy would look like in the current year and over the next 10 years if current laws governing taxes and spending generally remained unchanged. This...
They never ever increases taxes to pay for anything.
I have an Ally savings account. was stuck at 1/2% for a long time but they bumped it to .0075 and then .009 in the last month.
I think you mean increase tax revenue. There are 2 ways to do that - increase tax rates, or grow the economy. Growing the economy has the potential to raise far more tax revenue than raising income tax rates. Reagan proved this in the mid 80's, and Ireland proved it again at the turn of the century.
Just seems like a lot of stuff gets passed with the promise of “this will cause the economy to grow even more and pay for itself”. I am pretty damn skeptical.
www.wsj.com
