That will work great because we won't have to spend anything extra over the next 15 years.
Double-Digit Inflation Ahead? Are You Worried?
- Thread starter What Would Jesus Do?
- Start date
Because those jobs don't pay a living wage.
To the larger point, though, this isn't just about a shortage of labor (although I'm sure it's part of it), the issues resonates through all facets of the supply side - materials, logistics, etc. Those systems aren't designed for hard stops and starts.
You are full of shit. Thanks Biden! 2nd coming of Jimmy Carter is here.
Who was president the first round of stimulus money where people started staying home and not coming back to work? I'm not blaming Trump for that and I'm not blaming Biden for this either.
Wow a few decent points but most is way off. Where to get started. We are discussing 2 separate things, inflation and the debt which can be correlated, but not always lets discuss what is occurring.
The debt is increasing rather quickly, the pace of the debt needs to get under control, likely more taxes to pay for the spending that is occurring. The 1% will get hit but they are paying a larger percentage than ever before. Even as a democrat and also as a CPA, the average american in the lower to middle range is paying an effective tax rate of 3%, the 1% are paying an effective tax rate around 25%. Overall tax rates for all individuals have come down in the last 40 years, more so for the highest tax payers.
As to why things are more expensive. You have a decent amount of the population that is either scared of coming back to the work force or can get more money on unemployment or older workforce that is just retiring. With the economy reopening, in order to higher from a shrinking pool wages for the bottom earners are going up. Likely this will raise the floor and the price won't go down again, but the current wages could stagnate as workers come back to the workforce.
Between storms and the pandemic, there have been significant interruptions to many of the supply chains. Think most of plastics are built in Texas, winter storm Yuri impacted productions for weeks on months effecting others supply chains drastically.
The next is with stimulus and staying at home, more are willing to purchase items and spend on the home. Most are concerned on the price of lumber, why has it gone up so. The issue isn't trees, its there is currently a bottleneck at the mills, they cannot produce enough due to the increased demand, due to the constraint in supply.
Most of the issues are transient, some of the effects will be long-lasting - however most are not likely to continue to increase in my opinion. The only thing that will have continued pressure is the increasing debt decreasing the value of the dollar causing pricing pressure. This is isn't a republican or a democratic issue, both need to work on balancing the budget and neither has, complaining about one side or the other is foolish. Republicans claim to be fiscally responsible but once in office they destroy the deficit just as much as the democrats if not worse.
The debt is increasing rather quickly, the pace of the debt needs to get under control, likely more taxes to pay for the spending that is occurring. The 1% will get hit but they are paying a larger percentage than ever before. Even as a democrat and also as a CPA, the average american in the lower to middle range is paying an effective tax rate of 3%, the 1% are paying an effective tax rate around 25%. Overall tax rates for all individuals have come down in the last 40 years, more so for the highest tax payers.
As to why things are more expensive. You have a decent amount of the population that is either scared of coming back to the work force or can get more money on unemployment or older workforce that is just retiring. With the economy reopening, in order to higher from a shrinking pool wages for the bottom earners are going up. Likely this will raise the floor and the price won't go down again, but the current wages could stagnate as workers come back to the workforce.
Between storms and the pandemic, there have been significant interruptions to many of the supply chains. Think most of plastics are built in Texas, winter storm Yuri impacted productions for weeks on months effecting others supply chains drastically.
The next is with stimulus and staying at home, more are willing to purchase items and spend on the home. Most are concerned on the price of lumber, why has it gone up so. The issue isn't trees, its there is currently a bottleneck at the mills, they cannot produce enough due to the increased demand, due to the constraint in supply.
Most of the issues are transient, some of the effects will be long-lasting - however most are not likely to continue to increase in my opinion. The only thing that will have continued pressure is the increasing debt decreasing the value of the dollar causing pricing pressure. This is isn't a republican or a democratic issue, both need to work on balancing the budget and neither has, complaining about one side or the other is foolish. Republicans claim to be fiscally responsible but once in office they destroy the deficit just as much as the democrats if not worse.
Stimulus money makes sense when the economy is being forced into shut down,.. it doesn't make sense when you're trying to reopen the economy,.. Biden is playing with fire.
Someone worked that job prior to COVID. It’s only now that it’s deemed a Non-livable wage job? With wages going up, inflation going up, the “livable wage” will continue to go up. $15/hr becomes $20/hr. $20/hr becomes $25/hour. The price of everything keeps going up, up, up. The business owners are not dipping into their own pockets to fund the wage increases. The increases are passed directly onto the consumer.
We agree on the 2nd point.
I think our society is productive, innovative, and adaptive-- so inflation on stuff that everyone uses will be readily controlled by markets. Whenever a bottleneck arises, it will get solved and solved damn well. We won't need to manage with less. That said, there is a lot of green sloshing around. So higher levels of inflation will be allowed to deliberately inflate certain sectors, perhaps real-estate and equities and crypto (michievous mention), and then conveniently punctured to the extent necessary thereby settling back the economic foundation. I'm not a econotechnician, so this is mostly story-telling.
Your side was happy to pay people to stay home (if that's how you want to look at it) as long as their billionaire paymasters got most of the allocated funds - which they did.
Nonsense. Reckless money management can certainly be a factor, but this is not The Weimar Republic.
The purchasing power of the dollar can be driven down by various things, but the main factor is the demand for he dollar as a commodity, not how many we print or how much we borrow.
Which is not to say that we are going to dodge the inflation bullet this time.
If runaway inflation is what it takes to prevent a "President Harris" from happening, then that's a really good thing.
It would have been nicer for workers to get the minimum wage raised to $15/hr when dollar was still worth a dollar. Soon people will be getting $15 an hour because that's the equivalent of the $10 they used to make. Meaning their quality of life won't actually improve, even though their paycheck looks better.
Hey, welcome to Economics 101. You get an "A".
No. Last year corporate taxes yielded 212 billion to the treasury. If Biden is going to pay for 6 trillion in new spending with corporate tax increases, then we're looking at a 30 fold increase on corporate taxation. That's not going to happen...
After WWII, there was a huge influx of people willing to buy goods and produce those goods and the money supply was still backed by specie. Now, the government has pumped north of five trillion of worthless money into an economy with reduced goods and services while paying people not to work. It would be impossible to create a more fertile environment for inflation.
2.26% is a damned joke. I challenge you to find ten items in a grocery store that haven't increased by more than that. That doesn't even include the 35% increase in fuel prices and God-knows-how-high increase in building materials.
Ah, but "inflation figures" produced by the government exclude food and gas prices, because they're too volatile.
It isn’t just this administration. This started in 2020 and is continuing.
All of the metrics are historic, so you do not see it until after it has already occurred if you use those. However, if you look at commodity price variation, pricing decisions and the trend in wages it can help you figure out what is likely coming. From my perspective I see substantial inflation in the near future. Further increases to the money supply will cause that to increase, imo.
So where are these enlightened people who won't work for less than a "living wage" finding the means to procure the things they need to survive?
Oh, it's not so bad. Sure, my half gallon of ice cream went up a buck and shrank to 48 ounces, but it has bigger chunks of chocolate.
My side? It gets old explaining this to the libs on this board. If I haven’t voted R in 10 years. Voted Johnson and then Biden, how is it the Republicans are “my side”?
I have not been ok with any of the stimulus plans. I have repeatedly stated here that they were not targeted enough should have provided more to those that need it and less/none to those that do not.
Copper and Lumber have appeared to have topped this week, possibly also the grains. I am curious to see if it has one more run in it, but Lumber futures are lower in the fall than current prices. Some of the CPI is going to cool off. Whats funny is this week most prices have declined, but all the reports are based off of prior weeks or months. The real question is, are we in a general upward trend similar to the 70's, 80's or will be in relatively low interest rate environment.
Similar threads
