Hidden "tax" is coming to America if we don't stop this irrational spending.

[abby97]

Remember that inflation is a hidden tax. It is a powerful (and often unseen and unstoppable) way for a government to pay for its goods and services without raising visible taxes that make people angry.

Warren Buffett is widely regarded as the best long-term investor in America. He clearly has moved from concerns about unemployment to concerns about inflation.

"We are seeing substantial inflation," Buffett said at the annual meeting of Berkshire Hathaway. "We are raising prices. People are raising prices to us, and it's being accepted."

Buffett’s private sector experience is reinforced by former Secretary of the Treasury and Ph.D in economics Larry Summers (Obama's Director of National Economic Council, former President of Harvard), who warned during a forum that inflation indicators were "flashing red alarm" and that "all the signs are for inflation starting to break out.

"We were providing demand well in excess over the next couple of years of any plausible estimate of the economy’s potential to produce, and that meant substantial price increases," Summers said.

 

[Huey Grey]

Infrastructure is irrational spending? With thinking like this it's no wonder America sucks these days.

 

[anon_p5xhdxl4apz5n]

Infrastructure should have been the spending all along, sending money to people was the worst idea ever from an economical perspective, for me yes of course I love it, the checks have just flowed in all year and having kids made them bigger, but from an economics perspective it is not being used to increase productivity so its worthless and causing transitory inflation and will actually hold our economy back for years to come.

 

[MepoDawg#]

Infrastructure is irrational spending? With thinking like this it's no wonder America sucks these days.

Being narrow minded is what’s wrong with America.

 

[ft254]

Our infrastructure is in abysmal condition through neglect. So, the answer is to ignore it further until repair is not possible and replacement is necessary and will be more costly.

Practicality and logic. America needs jobs. Cities and states need the investment. Connect the dots.

Just have Nike, Amazon and the others pay taxes. Like we do. That's all.

 

[ping72]

OP is in agreement that we need to decrease defense spending and raise taxes on the wealthy to avoid inflation.

Well argued, Abby!

 

[BrunoMars420]

The inflation talk is so overblown its basically fear mongering at this point.

 

[abby97]

This is one of the main problems we have in America today. People don't stop and think about the consequences of our actions. And those of you supporting more spending with money we don't have, have a lot of nerve calling yourselves "educated". I would be for limiting defense spending if ALL spending was reduced including medicare, SS, welfare, medicaid, everything. If we would pass a balanced budget amendment it would require everyone to really evaluate what our priorities are and stop spending simply for political advantage. Tax increases are not the answer however, taking money out of the system would only exacerbate unemployment and economic growth.

 

[abby97]

The inflation talk is so overblown its basically fear mongering at this point.

Said by someone who obviously hasn't lived through real inflation.

 

[Tom Paris]

Remember that inflation is a hidden tax. It is a powerful (and often unseen and unstoppable) way for a government to pay for its goods and services without raising visible taxes that make people angry.

Warren Buffett is widely regarded as the best long-term investor in America. He clearly has moved from concerns about unemployment to concerns about inflation.

"We are seeing substantial inflation," Buffett said at the annual meeting of Berkshire Hathaway. "We are raising prices. People are raising prices to us, and it's being accepted."

Buffett’s private sector experience is reinforced by former Secretary of the Treasury and Ph.D in economics Larry Summers (Obama's Director of National Economic Council, former President of Harvard), who warned during a forum that inflation indicators were "flashing red alarm" and that "all the signs are for inflation starting to break out.

"We were providing demand well in excess over the next couple of years of any plausible estimate of the economy’s potential to produce, and that meant substantial price increases," Summers said.

LOL...of course you're creating a post now that Biden is POTUS.

Did you complain about the trillions of tax dollars handed back to the wealthy during the Trump tax cut? Of course you didn't.

 

[Whatsgoingonwitgyouguys0190]

Infrastructure is what businesses run on. Spend the damn money at home. This is what we mean when we say no one does it alone, we need infrastructure and we need it now. Spend it and the return is worth it.

 

[TheCainer]

This is one of the main problems we have in America today. People don't stop and think about the consequences of our actions. And those of you supporting more spending with money we don't have, have a lot of nerve calling yourselves "educated". I would be for limiting defense spending if ALL spending was reduced including medicare, SS, welfare, medicaid, everything. If we would pass a balanced budget amendment it would require everyone to really evaluate what our priorities are and stop spending simply for political advantage. Tax increases are not the answer however, taking money out of the system would only exacerbate unemployment and economic growth.

Was there a caveat to this quote, something like "...unless democrats are in power"?

I must have missed that part.

 

[theiacowtipper]

This is one of the main problems we have in America today. People don't stop and think about the consequences of our actions. And those of you supporting more spending with money we don't have, have a lot of nerve calling yourselves "educated". I would be for limiting defense spending if ALL spending was reduced including medicare, SS, welfare, medicaid, everything. If we would pass a balanced budget amendment it would require everyone to really evaluate what our priorities are and stop spending simply for political advantage. Tax increases are not the answer however, taking money out of the system would only exacerbate unemployment and economic growth.

So do spending cuts take money out of the system as well? If tax cuts are bad because they take money out of the system then spending cuts must be bad as well, right?

Let’s take federal highway spending. I think it’s about 50 billion per year. Let’s say that your budget cuts result in 50% less spending in this area. That’s $25 billion not going to construction companies. Not going to the wages of workers. Does that not suppress the economy?

 

[CLUB215]

This is one of the main problems we have in America today. People don't stop and think about the consequences of our actions. And those of you supporting more spending with money we don't have, have a lot of nerve calling yourselves "educated". I would be for limiting defense spending if ALL spending was reduced including medicare, SS, welfare, medicaid, everything. If we would pass a balanced budget amendment it would require everyone to really evaluate what our priorities are and stop spending simply for political advantage. Tax increases are not the answer however, taking money out of the system would only exacerbate unemployment and economic growth.

So there's too much money out there, but taxing it is the wrong idea?

 

[bdg8]

The inflation talk is so overblown its basically fear mongering at this point.

Please explain what product categories are not increasing in price

is housing?
Is food?
Are transportation costs ?
Are raw materials?

 

[ConvenientParking]

This is one of the main problems we have in America today. People don't stop and think about the consequences of our actions. And those of you supporting more spending with money we don't have, have a lot of nerve calling yourselves "educated". I would be for limiting defense spending if ALL spending was reduced including medicare, SS, welfare, medicaid, everything. If we would pass a balanced budget amendment it would require everyone to really evaluate what our priorities are and stop spending simply for political advantage. Tax increases are not the answer however, taking money out of the system would only exacerbate unemployment and economic growth.

Sigh

 

[LunchBox50]

Remember that inflation is a hidden tax. It is a powerful (and often unseen and unstoppable) way for a government to pay for its goods and services without raising visible taxes that make people angry.

Warren Buffett is widely regarded as the best long-term investor in America. He clearly has moved from concerns about unemployment to concerns about inflation.

"We are seeing substantial inflation," Buffett said at the annual meeting of Berkshire Hathaway. "We are raising prices. People are raising prices to us, and it's being accepted."

Buffett’s private sector experience is reinforced by former Secretary of the Treasury and Ph.D in economics Larry Summers (Obama's Director of National Economic Council, former President of Harvard), who warned during a forum that inflation indicators were "flashing red alarm" and that "all the signs are for inflation starting to break out.

"We were providing demand well in excess over the next couple of years of any plausible estimate of the economy’s potential to produce, and that meant substantial price increases," Summers said.

Show us your concerns you posted in 2017. kthxbyeeeeeeee

 

[CLUB215]

Please explain what product categories are not increasing in price

is housing?
Is food?
Are transportation costs ?
Are raw materials?

Gas prices have increased but my household fuel spending is 10% of February 2020 level.

 

[FtWorthhawkeye]

This is one of the main problems we have in America today. People don't stop and think about the consequences of our actions. And those of you supporting more spending with money we don't have, have a lot of nerve calling yourselves "educated". I would be for limiting defense spending if ALL spending was reduced including medicare, SS, welfare, medicaid, everything. If we would pass a balanced budget amendment it would require everyone to really evaluate what our priorities are and stop spending simply for political advantage. Tax increases are not the answer however, taking money out of the system would only exacerbate unemployment and economic growth.

Correct. Storming the capitol has consequences. Supporting those that storm capitols has consequences.

 

[bdg8]

Gas prices have increased but my household fuel spending is 10% of February 2020 level.

I was thinking more along the lines of cost to transport goods. Which is increasing and impacts pretty much everything

I have been told that the cost to ship containers on boats have went up in some instances from around 5k per container to as high as 20k per container

prices are going up in several very high volume categories. It will only get worse as year progresses

 

[BrunoMars420]

Said by someone who obviously hasn't lived through real inflation.

U.S. Inflation Rate 1960-2022

Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres formula is generally used.

www.macrotrends.net

So how close are we to that horrible inflation? The fed is targeting 2% each year and have tools in place to keep inflation in check.

So since you are the fear mongering type, when will this horrific inflation hit? How high will it be?

 

[BrunoMars420]

Please explain what product categories are not increasing in price

is housing?
Is food?
Are transportation costs ?
Are raw materials?

You think that is all due to inflation or market fluctuations due to covid? Supply chain issues? Supply and demand?

 

[Greenway4Prez]

Was there an edit in the OP or something, because there’s a lot of posts about infrastructure, but that word doesn’t appear in the OP.

I get it, memories are long around here and reputations set in stone, but there are a bunch of nonsensical replies here.

As far as I’m concerned, the dam will break at some point. Whether that’s inflation or a tax increase, there are bills to pay and I wish there could be bi-partisan solutions now as opposed to drastic measures down the road. The Trump tax cuts were unnecessary and untimely, just so I’m on the record. I wouldn’t be opposed to those cuts being overturned.

 

[Tom Paris]

Was there a caveat to this quote, something like "...unless democrats are in power"?

I must have missed that part.

I mean, we told the cons on here, 6 months ago, that they were going to start caring about spending and the deficit again. WE TOLD THEM AHEAD OF TIME!! So what do they do as soon as Biden takes office? Start caring about spending and the deficit again.

It's just so automatic. Such hypocrisy.

 

[Eternal Return]

Please explain what product categories are not increasing in price

is housing?
Is food?
Are transportation costs ?
Are raw materials?

Housing is related to a shortage of stock for homebuyers. The estimate I read was well over 10 million houses short of need. So that's jacking up housing prices. Building shot way down after the 2008-2009 recession and has never really picked up.

Food costs shot up during the pandemic because of shortages and COVID is still hampering global supply chains. So demand is outpacing supply. It's not taxes.

Transportation costs and raw materials? Same as food. Economic production is down in all sectors of the supply chain. Due to Covid. Not tax increases.

Wall Street's valuations reflect optimism on all fronts post-Covid because they're anticipating an explosion of economic activity after vaccinations. Too optimistic? Maybe, but that has nothing to do with taxes.

The proposed infrastructure spending is making Wall Street AND Main Street salivate.

 

[BrunoMars420]

Housing is related to a shortage of stock for homebuyers. The estimate I read was well over 10 million houses short of need. So that's jacking up housing prices. Building shot way down after the 2008-2009 recession and has never really picked up.

Food costs shot up during the pandemic because of shortages and COVID is still hampering global supply chains. So demand is outpacing supply. It's not taxes.

Transportation costs and raw materials? Same as food. Economic production is down in all sectors of the supply chain. Due to Covid. Not tax increases.

Wall Street's valuations reflect optimism on all fronts post-Covid because they're anticipating an explosion of economic activity after vaccinations. Too optimistic? Maybe, but that has nothing to do with taxes.

The proposed infrastructure spending is making Wall Street AND Main Street salivate.

But…..INFLATION!!!! BUY GOLD!!! BUY SILVER!!!

 

[bdg8]

Housing is related to a shortage of stock for homebuyers. The estimate I read was well over 10 million houses short of need. So that's jacking up housing prices. Building shot way down after the 2008-2009 recession and has never really picked up.

Food costs shot up during the pandemic because of shortages and COVID is still hampering global supply chains. So demand is outpacing supply. It's not taxes.

Transportation costs and raw materials? Same as food. Economic production is down in all sectors of the supply chain. Due to Covid. Not tax increases.

Wall Street's valuations reflect optimism on all fronts post-Covid because they're anticipating an explosion of economic activity after vaccinations. Too optimistic? Maybe, but that has nothing to do with taxes.

The proposed infrastructure spending is making Wall Street AND Main Street salivate.

"We are seeing substantial inflation," Berkshire Hathaway CEO Warren Buffett said at the Berkshire Hathaway annual shareholder meeting exclusively live-streamed by Yahoo Finance. "We are raising prices. People are raising prices to us, and it's being accepted."

Sure there are multiple reasons , but do you think consumers care of reasons. If shit costs more, shit costs more. And we better get used to it for foreseeable future

 

[BrunoMars420]

"We are seeing substantial inflation," Berkshire Hathaway CEO Warren Buffett said at the Berkshire Hathaway annual shareholder meeting exclusively live-streamed by Yahoo Finance. "We are raising prices. People are raising prices to us, and it's being accepted."

Sure there are multiple reasons , but do you think consumers care of reasons. If shit costs more, shit costs more. And we better get used to it for foreseeable future

Wasn’t that the mantra after 08 and throughout the Obama years?

 

[bdg8]

Wasn’t that the mantra after 08 and throughout the Obama years?

What does 2008 have to do with current increases?

 

[bdg8]

Housing is related to a shortage of stock for homebuyers. The estimate I read was well over 10 million houses short of need. So that's jacking up housing prices. Building shot way down after the 2008-2009 recession and has never really picked up.

Food costs shot up during the pandemic because of shortages and COVID is still hampering global supply chains. So demand is outpacing supply. It's not taxes.

Transportation costs and raw materials? Same as food. Economic production is down in all sectors of the supply chain. Due to Covid. Not tax increases.

Wall Street's valuations reflect optimism on all fronts post-Covid because they're anticipating an explosion of economic activity after vaccinations. Too optimistic? Maybe, but that has nothing to do with taxes.

The proposed infrastructure spending is making Wall Street AND Main Street salivate.

never did I mention taxes were responsible. Just the undeniable fact that things are costing more and will continue to rise for foreseeable future

 

[hawkeyez]

U.S. Inflation Rate 1960-2022

Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres formula is generally used.

www.macrotrends.net

So how close are we to that horrible inflation? The fed is targeting 2% each year and have tools in place to keep inflation in check.

So since you are the fear mongering type, when will this horrific inflation hit? How high will it be?

I keep hearing this "The fed is targeting 2%" BS...

8' 2x4s were ~$2.75 pre-COVID. Right now they're ~$8.00

A bushel of corn was $3.80, right now it's $6.80.

I'm not the best at math, but I don't think that's 2%. I don't think I'm cherry picking here either. I could come up with 100 different examples of this and they can't all be driven by supply chain issues. That just sounds like a convenient excuse, IMO.

 

[BrunoMars420]

What does 2008 have to do with current increases?

That people were saying shit will start costing more and prices will stay high due to inflation. It’s a bad talking point

 

[BrunoMars420]

I keep hearing this "The fed is targeting 2%" BS...

8' 2x4s were ~$2.75 pre-COVID. Right now they're ~$8.00

A bushel of corn was $3.80, right now it's $6.80.

I'm not the best at math, but I don't think that's 2%. I don't think I'm cherry picking here either. I could come up with 100 different examples of this and they can't all be driven by supply chain issues. That just sounds like a convenient excuse, IMO.

Supply and demand - Wikipedia

en.m.wikipedia.org

This may help you understand the current reason lumber and corn prices are super high.

 

[binsfeldcyhawk2]

Infrastructure is irrational spending? With thinking like this it's no wonder America sucks these days.

Define "infrastructure"

 

[abby97]

LOL...of course you're creating a post now that Biden is POTUS.

Did you complain about the trillions of tax dollars handed back to the wealthy during the Trump tax cut? Of course you didn't.

No of course I didn't complain about tax cuts because they benefit all Americans and the economy as a whole. I did however criticize Trump for his reckless spending, two different things.

 

[hawkfan0319]

The inflation talk is so overblown its basically fear mongering at this point.

Politics 101 on both sides

 

[abby97]

So do spending cuts take money out of the system as well? If tax cuts are bad because they take money out of the system then spending cuts must be bad as well, right?

Let’s take federal highway spending. I think it’s about 50 billion per year. Let’s say that your budget cuts result in 50% less spending in this area. That’s $25 billion not going to construction companies. Not going to the wages of workers. Does that not suppress the economy?

Spending is good for the economy if the money is there. If we take X trillions of dollars in tax revenue and we allocate a percentage of that money for construction, infrastructure, etc. that is good. If on the other hand, we print money and devalue our currency and create more debt load on the economy just to spend money, then it is bad. Just like paying for your groceries every week in cash or putting them on your credit card every week and never paying it off.

 

[luvmyhawks]

Politics 101 on both sides

If you are referring to a democrat being in office and talk of inflation to stoke fear mongering due to politics and it coming from cons, I got news for you. Warren Buffet is very liberal. He is also someone I pay more attention to then anyone else on Wall Street. Why wouldn't you?

 

[Tom Paris]

No of course I didn't complain about tax cuts because they benefit all Americans and the economy as a whole. I did however criticize Trump for his reckless spending, two different things.

Oh man. No they effing didn't. They benefitted the wealthy greatly but you apparently like to jump for joy over a few crumbs. Trickle down DOES NOT WORK. It's a scam and you continue to fall for it.

I mean, if somebody wants to cut my taxes and it saves me $5000, that's one thing. That's a semester of college. But when I don't even notice a cut, and the top 1% gets even more of a break it just shows how the Republicans only care about wealthy. The system is gamed. Those people didn't NEED those tax breaks and it added to the deficit massively. It helped very few. An infrastructure plan will benefit WAY more Americans than this giveaway to the wealthy that you sadly support.

In case you missed it, trickle down economics HAS NEVER WORKED FOR MOST AMERICANS.

 

[luvmyhawks]

Supply and demand - Wikipedia

en.m.wikipedia.org

This may help you understand the current reason lumber and corn prices are super high.

Supply is short and demand is high, which is the very definition and recipe for inflation. Do you know why demand is so high right now??

Not fear mongering here, I just pay attention to this stuff. Inflation could very well be an issue in the near future.