COVID Stimulus Spending Played 'Sizable Role' in Inflation
Fiscal stimulus during the pandemic contributed to an increase in inflation of about 2.6 percentage points.
Stimulus spending played a "sizable role" in driving inflation to 40-year highs in the wake of the COVID-19 pandemic.
"We find that excess inflation is significantly correlated to each country's own domestic stimulus and to various exposures of foreign stimulus," concluded a trio of economists at the St. Louis Federal Reserve in a report published last month. In the U.S., they found that "fiscal stimulus during the pandemic contributed to an increase in inflation of about 2.6 percentage points."
That's a significant increase, even if it doesn't account for the full run-up of inflation that took place during the past 18 months. Price increases accelerated in late 2021 and throughout 2022, ultimately peaking at an annualized rate of 9.1 percent in June.
In the report, the three economists note that governments around the world responded to the COVID-19 pandemic by injecting large amounts of money into the economy via various mechanisms.
"The large increase in demand triggered by the fiscal stimulus policy, together with the slow pace of adjustment in production, likely contributed to the current imbalance in the goods market," they wrote. The increase in demand as the world was still recovering from the blow that the pandemic dealt to production facilities and supply chains—and the disconnect between supply and demand—naturally forced prices to climb.
"Fiscal stimulus did not have any noticeable association with industrial production movements," the three economists explain. "By stimulating demand without boosting supply, our results suggest that fiscal support contributed to increased excess demand pressures."
The most obvious form of fiscal stimulus in the U.S. was the three rounds of direct payments mailed to most American households during the pandemic. About $823 billion was distributed in that manner, according to the COVID Money Tracker run by the Committee for a Responsible Federal Budget, a nonprofit that advocates for lower deficits.
The first round of stimulus checks was worth $1,200 per person and was approved as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. Another round of $600 checks was distributed starting in December of that year. But the big blow came in early 2021, when the Biden administration pushed through a round of $1,400 checks as part of the American Rescue Plan, passed by Congress in March 2021. Households earning as much as $160,000 in joint income were eligible for the final round of direct payments disbursed during the first half of 2021—and many progressives in Congress thought the cutoff should have been even higher.
The new report also seems to validate the concerns of some economists—including Larry Summers, one of the Obama administration's top economic advisers, who warned that the American Rescue Plan "will set off inflationary pressures of a kind we have not seen in a generation."
After crunching the economic data from March 2020 through February 2022—a cut-off chosen to exclude any consequences from Russia's invasion of Ukraine, which pushed some prices higher—the three Federal Reserve economists say they found a "potentially sizable role that fiscal policy may have played in contributing to upward price pressures."
That's somewhat at odds with the traditional view of inflation, which views the phenomenon as a function of monetary policy rather than fiscal policy.
But they argue that the two issues can become intermingled when the fiscal policy is fueled by government debt—that is, when fiscal stimulus is financed with borrowing rather than tax increases—because the "newly issued government debt is only partially backed by future taxes."
Other recent reviews of COVID-era stimulus bills have come to a similar conclusion. In a paper published in September, economists at Johns Hopkins University and the Chicago Federal Reserve said "fiscal inflation" accounted for "approximately half" of the recent price increases.
That's troubling, they added, because "fiscal inflation tends to be highly
persistent…When inflation has a fiscal nature, monetary policy alone may not provide an effective response."
So far, the chief response to inflation has been a monetary one. The Federal Reserve has hiked interest rates—another hike in rates was approved this week—in an attempt to soak up the excess demand in the market. That seems to have tamed the soaring price increases seen in the first half of last year, but inflation is still running well ahead of the target annualized rate of 2 percent.
If fiscal policy contributed to higher prices, then it might require fiscal policy changes to bring them down as well.
Reckless borrowing and spending during the pandemic, it turns out, didn't only cause the national debt to hit new highs. It also likely contributed to higher prices everywhere else.
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If the US will add 87,000 IRS agents, their sole function should be to account for where every penny of covid money was spent.
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So according to this opinion piece, the “big blow” was the $1,400 stimulus under Biden and not the $1,800 stimulus under Trump. I guess in “conservative” math, 1400 > 1800.
It has all contributed significantly. Both parties are driving this country to destruction.
Agreed.
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You guys failed to recognize that the Biden stimulus bill did a lot more than $1400 to each eligible citizen. In fact, the stimulus checks was a very, very small part of the overall bill, which itself had almost nothing to do with COVID. This is massively different from Trump’s stimulus bills.
You two are being disingenuous here.
And yet Libertarian Economists claimed that the trillions Ronald Reagan borrowed were anti-inflationary.
So were they lying then or are they lying now?
Got a cite for that claim, lefty shit? Pretty sure you’re lying every time you touch a keyboard.
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Trillions? The whole national debt was only 1 trillion back then. Bush/Obama/Trump/Biden can do that in one year or less.
Vendicar is about as retarded as shrike.
When Trump did it, the economy was on the precipice and the money was needed, just for people to keep their heads above water.
The spending of that money didn’t make inflation rise, because it went to ordinary expenses.
When Bai-dung did it, it was just so he could say he did something Trump had done, but, with the economy coming out of its chinaflu-induced slowdown, it wasn’t needed and the extra money in circulation went to non-necessary spending, flooding the economy with surplus dollars, impacting supply and causing rising prices.
That’s how you get runaway inflation.
It was still a giant mistake to jack up the budget for an emergency. Because the Dems always take the one-time emergency spending as the new baseline.
It should be pointed out that neither Trump nor Biden created the stimuli, Nancy Pelosi did.
In Trump’s defense he fought against her demented request of, what was it, $7trillion, but it’s not like he was out there banging the drums of how fiscally irresponsible any of the spending was.
“Welcome to the party, pal!”
Most of us here noticed that it just might be a problem back with the initial stimulus back in April/May 2020. We also took note that with each stimulus, the problem was compounded, including the biggest such stimulus in early 2021. What made you just notice, Boehm, oh ye who reluctantly voted for Biden?
ITS TRANSITORY!
You do realize Biden’s $1,400 was LESS THAN Trump’s combined $1,800, amirite?
You do realize that the Democrats were in charge of Congress both times, amirite?
Nope. There is no inflation. The official hype man for the Biden economy has repeatedly explained this.
#DefendBidenAtAllCosts
Humorously; We can all be witnesses to that stupidity…….. And P.S. The sky is falling too! /s
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Odd how Libertarian Economists claimed that the trillions Ronald Reagan borrowed were anti-inflationary.
So were they lying then or are they lying now?
Got a cite for that claim, lefty shit? Pretty sure you’re lying every time you touch a keyboard.
*shocked face*
Yes, you should have a shocked face at the claim that 2.6% of the 7.3% increase in inflation had a more ‘Sizable Role’ than the factors that caused the other 4.7%.
They author of the article lost credibility in my mind by stating that ONLY 2.6% is attributable to the “covid spending”. It was FAR MORE sizable than that.
I’ve been reading here for years, but this article has prompted me to finally register to comment. That being said, the comments are typically more informative than the stories. ACA’s comment is pretty much the same as mine: “no shit.” Why is this even a surprise? Between supply chain issues and throwing money at a “problem” that was the gov’t’s own making, we saw this coming at least 18 months ago. I am so bored with the MSM’s narrative and “surprise” at this situation. This has been going on for at least my lifetime of 50+ years. It’s largely bullshit. Why do folks keep accepting “the news” as gospel. Wake the fuck up, think for yourself, and not in a “progressive” way. Stop accepting the crap “they” are feeding you, both left and right, but mostly left because fear, loathing, and “horrible people that don’t agree with you” are the worst things ever and must be cancelled (/sarcasm). Let’s not forget the suppression of free speech over the last few years that was obvious to most. The current situation is utterly amazing if you actually understand the Constitution. If anything, the gov’t is doing the opposite of what was intended by our Founders. I just don’t get it.
When does a sizable roll become a loaf of bread?
When Bernie stands in line to not get it.
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“We find that excess inflation is significantly correlated to each country’s own domestic stimulus and to various exposures of foreign stimulus,” concluded a trio of economists at the St. Louis Federal Reserve
Wow. Economists practicing economics instead of running cover for politicians? I’m surprised they’re not unemployed.
They’re not unemployed yet.
Good point. Printing too much money causes inflation? Well, that’s a big “duh”, but “Economists practicing economics…”, now that’s a story!
Odd how Libertarian Economists claimed that the trillions Ronald Reagan borrowed were anti-inflationary.
So were they lying then or are they lying now?
Got a cite for that claim, lefty shit? I’d say you’re lying every time you touch a keyboard.
Haha, 7 hours later and nothing.
S/he dropped the same comment at least 5 times in this thread, called on it every time. Crickets.
S/he is an un-informed lefty shit who shows up from time to time and always makes unsupported claims.
So NOT Victor Orban’s price controls… kay… *scribbling notes*
At least we didn’t try austerity. (Krugman shudders.)
“The large increase in demand triggered by the fiscal stimulus policy, together with the slow pace of adjustment in production, likely contributed to the current imbalance in the goods market,”
Too logical and backed by standard supply/demand economics.
We all know that worldwide inflation was caused by BIDEN CANCELLING THE KEYSTONE XL EXTENSION!!!!
(Mothers Lament is stupid enough to say this)
You experience tiny inflation each time you drive by an elementary school.
That’s what you get for mistaking ML for an honest person with integrity.
He’s got proof that I was impersonated, and he pretends it doesn’t exist because it would mean he was wrong when he accused me of running socks for years.
There are worms. There is scum. There are cops and prosecutors. And then there is ML. The cuntiest cunt to cunt up Cunt Town.
Is ML first on The List?
ML is Grand Cocksucker of the Trump Cult. There are other cultists like Jesse and ITL that shave their heads for Donnie. Sevo is like the parliamentarian and splooge mopper.
But you’re moving up the ladder fast.
Why do you think you have an affinity for your urges? You must have thought about this.
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A few years ago, you got your original “Sarah Palin’s Buttplug” account banned for posting kiddy porn to this site. The link below details all the evidence surrounding that ban. A decent person would honor that ban and stay away from Reason. Instead SPB keeps showing up, acting as if all people should just be ok with a kiddy-porn-posting asshole hanging around.
https://reason.com/2022/08/06/biden-comforts-the-comfortable/?comments=true#comment-9635836
(Shaved head? ITL runs his fingers through his head of hair in wonderment.)
“…A decent person would honor that ban and stay away from Reason…”
Well, there’s the problem right there.
He is first on my mental list of scumbags. I’ve never in my life met a lower form of life masquerading as a human being.
Who is second place?
Your mom. I’d say his mom, but bacteria reproduces by fission. Meaning he doesn’t have a mom.
My mom died in an auto accident some decades ago when a logging truck lost its brakes. The anniversary is coming up so I’ll try to relay your message to her.
It had to be someone’s mom, and he doesn’t have one. Them’s the rules. Sorry.
Ideas!
Is this the rationale that resulted in you intentionally burning a customer’s steak?
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The honest discourse sarc yearns for.
Look at sarc back up shrike for defending Biden at all costs.
Low and Behold, here comes the Case & Point.
https://reason.com/2023/02/02/covid-stimulus-spending-played-sizable-role-in-inflation/?comments=true#comment-9907384
good
Governments all over the world spent huge amounts of money while throttling economic activity.
That’s why unfree economies don’t handle inflated money as well as free economies do. The value of money is relative to the ratio between money and stuff, right? Freer economies produce more stuff, which lessens the impact of the increased money supply. But when you combine more money with unusual restrictions, you get a double-whammy.
Yeah, pretty much.
The “slow pace of production” was made worse by people having to take 15 days off after they tested positive, and part of the work force retiring early rather than getting vaccinated, or deciding to bet their stimulus checks on meme stocks and crypto instead.
The first round of stimulus checks was worth $1,200 per person and was approved as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. Another round of $600 checks was distributed starting in December of that year.
According to wingnut.com Nancy tricked Donnie and Mitch into all this spending by casting a spell on them and causing them momentarily to forget that they controlled 2/3 of the federal government.
— The Cares Act — Introduced in the House by Joe Courtney [DEMOCRAT]. Provisions 87% written by DEMOCRATS. House roll call vote VOIDED by a DEMOCRAT. The only voiced objection was Thomas Massie – REPUBLICAN.
Then there’s the Heroes Act (again pitched by DEMOCRATS) $3T!!!!!!! MORE in Stimulus Money. Blocked by REPUBLICANS.
— Once Republicans no longer had any majority — Bidens ARP $1.9T. Bidens Infrastructure Bill $1.2T. Bidens Build back Better Bill $1.75T. Bidens Inflation Reduction & Chips & Pact Act & Others $1T.
TOTAL Democratic Bills in last 2-years $3.4T in NEW SPENDING.
https://spendingtracker.org/rep/joe-biden?congress=117&type=enacted&include_voice=1&baseline=with_baseline&year=10
Yet; Here you are trying to cherry-pick an Act Signed by Trump of which DEMOCRATS pitched and mostly provisioned. And playing an utter ignorant fool to the ongoing PUSH by DEMOCRATS to just keep spending, and spending, and spending.
The CARES Act was passed with unanimous Republican support, you Team Red sycophant.
Her you go. Trump added a record $2 trillion to the annual deficit.
Ronald Reagan (1/20/1981) -$79 (as of 9/30/1981) -$153 (as of 9/30/1989) $74 94% FY 1982-1989
2 George H.W. Bush (1/20/1989) -$153 (as of 9/30/1989) -$255 (as of 9/30/1993) $102 67% FY 1990-1993
3 Bill Clinton (1/20/1993) -$255 (as of 9/30/1993) $128 (as of 9/30/2001) $383 150% FY 1994-2001
4 George W. Bush (1/20/2001) $128 (as of 9/30/2001) -$1,413 (as of 9/30/2009) $1,541 1,204% FY 2002-2009
5 Barack Obama (1/20/2009) -$1,413 (as of 9/30/2009) -$665 (as of 9/30/2017) $748 53% FY 2010-2017
6 Donald Trump (1/20/2017) -$665 (as of 9/30/2017) -$2,772 (as of 9/30/2021) $2,107 317% FY 2018-2021
https://amarkfoundation.org/us-federal-deficits/
Obama DECREASED the deficit $748 billion over eight years.
You should be ashamed to be a Republican.
Republicans DECREASED Obama and his DEMOCRATIC deficits from over $1T every year instantly down to $500B as soon as REPUBLICANS STOPPED IT.
Your BS is embarrassing.
No, you liar. The Bushpigs left a $1.4 trillion deficit.
Obama left Fatass Donnie a deficit about half that (the article says $665 billion)
https://amarkfoundation.org/us-federal-deficits/
RTFA
LOL…. Leftard Propaganda right there…
Deficit from First Budget to Final Budget (Omit all the ones between).
Scroll down and there a chart showing Obama’s MASSIVE spending.
HISTORICAL BUDGET DEFICITS:
2016 – $585 billion budget deficit
2015 – $439 billion budget deficit
2014 – $514 billion budget deficit
2013 – $719 billion budget deficit – [R] take both House & Senate
2012 – $1.1 trillion budget deficit
2011 – $1.3 trillion budget deficit
2010 – $1.3 trillion budget deficit
2009 – $1.4 trillion budget deficit – Obama + [D] congress
2008 – $455 billion budget deficit
Lol.
Liar
https://amarkfoundation.org/us-federal-deficits/
You really should learn to read your own links one day.
Obama:
2010 $14,839 $1,294 8.7% $13,529 91% 1.1%
2011 $15,404 $1,300 8.4% $14,764 96% 3.9%
2012 $16,057 $1,077 6.7% $16,051 100% 2.0%
2013 $16,604 $680 4.1% $16,719 101% 1.2%
2014 $17,336 $485 2.8% $17,794 103% 1.7%
2015 $18,106 $442 2.4% $18,120 100% 0.0%
2016 $18,582 $585 3.1% $19,539 105% 1.5%
2017 $19,317 $665 3.4% $20,206 105% 2.2%
Note that in 2010, the new Republican Congress came into office and started slashing costs.
I can do this with Clinton as well:
Clinton:
1994 $7,177 $203 2.8% $4,643 65% 3.0%
1995 $7,560 $164 2.2% $4,921 65% 2.5%
1996 $7,951 $107 1.4% $5,181 65% 3.0%
1997 $8,451 $22 0.3% $5,369 64% 2.2%
1998 $8,931 ($69) -0.8% $5,478 61% 1.5%
1999 $9,479 ($126) -1.3% $5,606 59% 2.6%
2000 $10,118 ($236) -2.3% $5,629 56% 3.5%
2001 $10,527 ($128) -1.2% $5,770 55% 2.6%
Note that in 1994, again, a Republican Congress was elected, and as they would to Obama later on, they started slashing costs.
So you agree with me, we do best in gridlock – Dem President and GOP House.
Fine.
I’ve always said that.
However, it defeats your original assertion.
And I quote:
Obama DECREASED the deficit $748 billion over eight years.
I showed you that it wasn’t Obama. If left to their own, Obama and the Democratic Congress were more than willing to run up the deficit.
And he also campaigned FOR democrats last election cycle.
“You really should learn to read your own links one day.”
That would take all the amusement out of reading turd’s links.
Obama came into office “with a $1.3 trillion deficit before I had passed any law. … We came in with $8 trillion worth of debt over the next decade.”
https://www.politifact.com/factchecks/2010/jan/29/barack-obama/obama-inherited-deficits-bush-administration/
Politifact.
Not wingnut.com which makes shit up like you do.
I also have the GAO report that confirms the deficit the Bushpigs left but you are too stupid to read the format.
Seriously, you’re using Politifact?
https://www.politifact.com/who-pays-for-politifact/
While PolitiFact relies on administrative support from the Poynter Institute, it is otherwise financially self-sustaining. It receives funding from online advertisements placed on the website. PolitiFact also receives compensation for selling its content to media publishers and companies. Organizations that contributed more than 5 percent of total PolitiFact revenues in the previous calendar year will be listed here: • Facebook • TikTok PolitiFact also accepts grants, which are listed by calendar year below.
Like Facebook has been known to be the most right-leaning or even centrist organization.
Again, you really should read your own links before you post something totally stupid.
https://capitalresearch.org/article/dishonest-fact-checkers/
Generally speaking, FactCheck.org has not been brazenly partisan, despite being very much a creature of the mainstream media. It has taken Democrats to task on a number of fronts. But the intellectual honesty of its chief rival has come under much more intense scrutiny. FactCheck.org’s Jackson has even said he’s not comfortable with PolitiFact’s Truth-O-Meter that rates some political claims as “Pants on Fire.” “I’ve never been able to see an academically defensible way to hand out those kinds of ratings,” Jackson said (Human Events, Aug. 30, 2012).
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Its humorous how you try to blame the previous administration and congress for something that continues onward way past the years of the previous administration and congress.
UR such a deceitful hack as all leftard fans are.
He’s a narcissist that gets his kicks by having folks spend their limited time conducting essentially fools errands.
Jan 7, 2009 while BUSH was president
https://money.cnn.com/2009/01/07/news/economy/cbo_2009_budget_outlook/
But finally passed March 10, 2009 and signed by Barack Obama.
Bush literally refused to sign the reid/Pelosi budget.
turd lies; it’s all he ever does. turd is a kiddie diddler, and a pathological liar, entirely too stupid to remember which lies he posted even minutes ago, and also too stupid to understand we all know he’s a liar.
If anything he posts isn’t a lie, it’s totally accidental.
turd lies; it’s what he does. turd is a lying pile of lefty shit.
Odd how Libertarian Economists claimed that the trillions Ronald Reagan borrowed were anti-inflationary.
So were they lying then or are they lying now?
Ronald Reagan??? WTF…
Well hey man….. dur, dur — What about FDR? lol.. 🙂
Got a cite for that claim lefty shit? Prettyscertain you lie every time you touch a keyboard. Fuck off and die,
You’re so full of shit. Obama and the Democrats ran trillion dollar deficits and didn’t pass a budget for the two years they controlled Congress after he was elected.
Obama signed FY09. The basis for shrikes incorrect analysis. He also does remove TARP from the analysis so the outlays are included in 08 and 09 and pay back in 10-12, the primary cause of all drops in the analysis. TARP was a one time program dems utilize to gaslight about their spending increases.
Does not remove*
Obama signed FY09.
The deficit was already $1.2 trillion before Obama was sworn in.
https://money.cnn.com/2009/01/07/news/economy/cbo_2009_budget_outlook/
Jan 7, 2009.
WHILE Bush was president.
CBO is the official source.
Do you know what the CBO is?
Um, not quite accurate. There were three, yes, count them, three continuing resolutions to fund the government between the time a spending request was submitted by George W. Bush on June 5, 2008, and the budget was finally approved by the House on March 10, 2009. That would be the Omnibus Appropriations Act, 2009, signed by none other than Barack H. Obama.
https://en.wikipedia.org/wiki/Omnibus_Appropriations_Act,_2009
You really are stupid aren’t you?
He’s stupid enough to post a cp link here.
He’s the dumbest motherfucker to post here and we get some really dumb drive by posters.
How do you still not understand how budgets are passed and the role of congress?
https://money.cnn.com/2009/01/07/news/economy/cbo_2009_budget_outlook/
Bears repeating here as Buttplug will ignore the original.
Um, not quite accurate. There were three, yes, count them, three continuing resolutions to fund the government between the time a spending request was submitted by George W. Bush on June 5, 2008, and the budget was finally approved by the House on March 10, 2009. That would be the Omnibus Appropriations Act, 2009, signed by none other than Barack H. Obama.
https://en.wikipedia.org/wiki/Omnibus_Appropriations_Act,_2009
Answer the question shrike. Bush refused to sign fy09.
Oops! Your constant gaslighting to defend Democrats and liberals has left you with egg on your face yet again. 🙂
Remember the other day when you said your side doesn’t care about reparations at all? That only conservatives talk about it? Well guess what! That same day establishment liberal media honcho Jeffrey Goldberg (EIC, The Atlantic) encouraged his liberal audience to read about …… reparations!
The fact that you have to straight up lie so often to defend your side should really tell you something.
This Biden economy is fantastic! Don’t believe your bills! Don’t believe your financial advisor! Don’t believe wingnut.com sites like Reuters! Also my side doesn’t praise race-obsessed radicals like Coates and NHJ! We liberals never give them prestigious awards or anything! Probably only conservatives even know who they are!
OBL was nuthin’ compared to your level of #Resistance hackery.
Bullshit. No prominent Democrat is serious about reparations.
Obama opposes reparations for slavery
By The Associated Press
……..
SPRINGFIELD, Ill. — Democratic presidential candidate Barack Obama opposes offering reparations to the descendants of slaves, putting him at odds with some black groups and leaders.
The man with a serious chance to become the nation’s first black president argues that government should instead combat the legacy of slavery by improving schools, health care and the economy for all.
I’m in the category of “This idea is so stupid any national candidate supporting it is suicidal”.
It does make proponents look stupid though. That is why conservatives publicize it.
Um, you might want to walk that back a bit there, Pluggo.
https://www.washingtontimes.com/news/2021/feb/17/democrats-push-reparations-bill-black-americans/
House Democrats pushed forward a reparations plan for Black Americans on Wednesday despite tepid support from President Biden and stiff opposition from Republicans.
Rep. Sheila Jackson Lee, who authored the reparations bill known as H.R. 40, said no level of opposition would discourage the quest.
His tepid support for the measure separated him from the other Democratic presidential candidates, including Vice President Kamala Harris who enthusiastically endorsed the bill.
The reparations bill garnered support from House Speaker Nancy Pelosi, California Democrat, and a total of 162 Democratic co-sponsors.
You were saying????
“The man with a serious chance to become the nation’s first black president”
Congrats. You pulled something from 2008 or earlier.
The problem is your party has radicalized so rapidly in so many ways that 2008 might as well have been a century ago. For example, did Democrats in 2008 believe a human with XY chromosomes, a full beard, and a cock & balls was literally not male-bodied just by reciting “My pronouns are ze / zir”? I’m sure Obama ’08 didn’t campaign on that.
Yet today that insanity is going mainstream in your party. Because that’s what you do: you dismiss the wackiest left-wing ideas as fringe and irrelevant – right up until they become official liberal dogma. At which point anyone who disagrees should be banished from society. Democrats would absolutely try the same strategy with reparations in the coming decades if they think they can get away with it.
Unfortunately gerrymandering is cutting out the sensible centrists in both parties.
But as of right now the QAnon Trump Trash in the GOP outnumber the Squad Emo-Progs in the Democratic Party.
Candidate Obama vowed to cut the deficit in half in 2009 and did it.
I don’t expect any candidate will do so in 2024.
Your link: https://amarkfoundation.org/us-federal-deficits/ above refutes you.
In 1994, Republicans took Congress. The deficit went down. Likewise, in 2010, Republicans took Congress. The deficit again went down. You do realize that budgets and spending bills originate in the House?
When Pluggo heard his record store might have a New Kids on the Block release, his package got stimulus.
I’ve made clear 100 times here that I support gridlock – with a D president and R House for just that reason.
Right. I’m going to go out on a limb here and say you’re just full of shit on that.
Why did you promote dem senate candidates last year then? People here are not stupid and not falling for your gaslighting or lies. Well maybe sarc.
turd lies; it’s all he ever does. turd is a TDS-addled pile of shit, a kiddie diddler, and a pathological liar, entirely too stupid to remember which lies he posted even minutes ago, and also too stupid to understand we all know he’s a liar.
If anything he posts isn’t a lie, it’s totally accidental.
turd lies; it’s what he does. turd is a lying pile of lefty shit.
Yeah, it turns out that when you shove a lot of stimulus money into a economy that you’ve shut down like a dictatorship, prices go up, since it’s illegal to actually produce more goods and services.
Who could have seen that coming?
Nobody could have seen that coming because facts ™ were not available until now.
Facts changed!
What about the narrative?
They changed after the elections occurred. Reason can go back to Cosplay libertine (regarding past events). There will still be a steady stream of DeSantis hit pieces.
No fucking shit.
[WE] are from the government and we are here to ?help?
Nobody is that dumb… UR only here to help yourselves.
Go AWAY!!!!!!!!!!!!!!!
P.S. If you’re here to ?help? why are you packing (monopoly of Guns) with you? You think pointing GUNS at us is going to help us?
The stupidity in every Democrat National Sozialist(Nazi) fan.
The official contribution of 2.6% seems low. Regardless, government is responsible for all of it, either due to monetary expansion or lockdowns that contributed to supply constraints.
And lockdowns also put a lot of competition out of business, making megacorps have even greater market share. Less competition allows those “greedy companies” to charge more without worrying about losing customers.
it’s not the spending, it’s the borrowing.
They had to borrow the money to spend it.
It’s true but..’it has nothing to do with subsidized housing, subsidized energy, water/sewer, public transit, free food? Hmmm
Just saw a 14 year old resale free market condo listing in my county, 1 bedroom, 1 bathroom, 620 sq feet. List price $675,000. HOA dues include water/sewer/heat $760/month, taxes not included.If the county I live in weren’t crony capitalsocialists the free market value would be around $400k-450k. There’s inflation for you, free marketers paying higher and higher prices for subsidized cheap labor living expenses.
….. I live in weren’t crony capitalsocialists the free market value would be around $400k-450k.
Please show your math.
7 8 9
4 5 6 x /
1 2 3 + –
0 =
Well, I’m glad I live where I do. I could buy a nice house with a decent chunk of land for $400k.
That’s counterfactual. Subsidized housing drives prices down in higher-income neighborhoods, not up.
“Another study, from Stanford Graduate School of Business researchers in 2017, looked at properties built with Low Income Housing Tax Credits in 129 counties, most of them in California and New England. They found that the low-income housing developments were associated with nearby home value increases of 6.5% when located in lower-income neighborhoods, and home value declines of 2.5% in higher-income neighborhoods.” Source: https://www.bloomberg.com/news/articles/2022-05-02/does-affordable-housing-lower-property-values
Look up houses and listing prices in Montrose Colorado, a working community for the wealthy stunning resort of Telluride Colorado. High paying construction jobs, tourism jobs. Free market Republican run county.
Look up houses and listing prices in Denver Shitlib summit county Colorado- home to Breckenridge, Keystone, Copper Mountain. A decent percentage of those condos are deed restricted- in other words subsidized. Research Eagle County Colorado (home to Vail, Beaver Creek) houses and condos on the free market, another deep blue county with deed restriction subsidized housing everywhere.
Finally look up deeper blue Pitkin County Colorado and Garfield as commuting distance (home to Aspen Snowmass) free market housing. Tons of subsidies.
Judge for yourself comparing Montrose to Frisco or Gypsum or Basalt
So you think Obamacare subsidies have lowered insurance premiums for the non – subsidized? Don’t believe my lying eyes. It’s on Bloomberg/Vox, it must be true.
You forgot the Fed buying up mortgage backed securities and long term Treasury debt to the tune of 120 billion a month (1.44 trillion a year) for years to keep mortgage rates low.
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Fiscal stimulus (if defined as spending funded by debt issuance rather than taxes) merely changes the timing of price changes. Higher prices in the short-term reverse to become lower prices when the debt starts getting paid down. But that is actually a monetary phenomenon that only looks like it is fiscal.
The notion that there’s some difference between fiscal v monetary inflation (apart from the notion that the former doesn’t really exist) is kind of weird.
Keynes would have said that sometimes ‘animal spirits’ are depressed so that in those times there is really monetary (debt) deflation in the absence of government creating debt to offset private sector debt repayment. Hayek/Mises (the real Mises not the Rockwell/Rothbard Caucus fraudsters) would have said basically the same thing but in different words – that it’s not animal spirits that’s the problem but the savings/investment intermediary (banking system) that’s broken.
The difference between the Keynes v Hayek/Mises approach is the aftermath. Keynes would say incur the fiscal stimulus and then reverse it when the debt comes due later. Hayek/Mises would say don’t incur the fiscal stimulus because the downturn will always self correct.
This was probably the situation in 2008 where a profitable public discussion about what to do was squashed by the corrupt threatening everyone else. This was nowhere near the situation re COVID where the corrupt simply stole what they wanted because they own the government and voters now.
Inflation remains a purely monetary phenomenon. The real problem with COVID spending is the pervasiveness of corruption and the power of the corrupt. We have met the enemy and it is us (or maybe just boomers/homeowners).
It’s not the boomers.
And I don’t think it’s the average homeowner either.
Well it’s any homeowner that uses the increasing price of their home to cash out and leverage up. I don’t know if that’s ‘average’ – but is surely pervasive.
What is certain – given the huge increase in house prices during COVID – is that neither ‘animal spirits’ nor the savings/investment intermediary is remotely broken.
“…Well it’s any homeowner that uses the increasing price of their home to cash out and leverage up…”
Comrade, we will sacrifice our desires for the good of the common man!
Do I have that right?
Shame on people for taking advantage of a good which has increased in value!
Man, JFear, you were on target right until you flogged this dead horse again.
Let’s be clear: a boomer who cashes out of their house has NOTHING to do with inflation. If a person takes $200,000 out of their house, they have done nothing to increase the money supply. That money was loaned to them by someone who now has $200,000 less to spend. You have just transferred money around.
Now some will jump up and say, “Wait! But the Banks who leant the money are the beneficiaries of Federal Reserve Stimulus”, and in general this is correct. The Federal Reserve pumps money into the system by buying up bonds and even equities with conjured dollars, or otherwise transferring conjured dollars into the system. Banks are of course the “First Order Beneficiaries” of these transfers.
But again, the boomer taking a loan on their inflated asset isn’t the one at fault. That house would not be over-valued if that money WASN’T ALREADY IN THE SYSTEM. They would not be able to take out the loan if the Bank did not ALREADY HAVE THE MONEY TO GIVE.
The inflation is caused by the Fed pumping money into the system- either through the methods above, or through debt-serviced fiscal stimulus directed by the government (and facilitated by Fed conjuring).
If a person takes $200,000 out of their house, they have done nothing to increase the money supply. That money was loaned to them by someone who now has $200,000 less to spend. You have just transferred money around.
Loans are not money being transferred around. Money is CREATED by a new loan. Out of thin air in fact. Though its obviously a bit more complicated than that. Money is reduced when a loan gets paid down. All money supply created by banks (ie not physical coins) would be eliminated if all bank loans were paid off. Not shifted around to somewhere unknown.
If the person doesn’t get a cash-out refi or somesuch, then that person will merely continue to pay down their existing home loan. Reduce the money that was created when they first took out a loan by paying the loan off. The cash-out refi breaks that timing cycle – without creating a good – and by creating money.
There is a slightly different money creation cycle re the physical house. Purchase and sale of an existing house. Purchase and sale of a new house. And each of those are different if paid in cash or loan.
But a cash-out refi is a really clean way of seeing what is inflation.
“…Money is CREATED by a new loan. Out of thin air in fact…”
JFree is STILL full of shit.
Are you saying the Bank creates the money out of thin air?
With the exception of required reserves totally out of thin air. The bank records the loan as an asset and the money deposited into the borrowers account as a liability
As I note below, this is 100% incorrect.
Just think about it. Why did the federal government pump hundreds of billions into banks during Financiapocalypse 2009, if banks could just pick dollars out of thin air? Wouldn’t they just loan themselves money, or loan each other money?
Unfortunately JFear read an article from the Bank of England (or a derivative of it) back in 2014, and (like many) has completely misunderstood what it means.
At the end of the day, a bank’s loanable funds are capped. That cap may be flexible at the margins, but it is nevertheless a cap. Start a bank with some capital, and go start loaning. You absolutely will not be able to loan infinite money. Other institutions will look at your balance sheet and decide that you are over-extended. And they decide this based on your capital reserves. And as I noted below, the value of your capital reserves is heavily manipulated by Fed policy.
Add onto that your profit as a bank. If it costs more for you to move money around than you make on interest, you aren’t going to loan. This is where the Fed’s interest rate impacts things. They make the cost of money higher for the bank, so that they have to charge more interest on loans, which of course leads to fewer borrowers.
Calling this pulling money “out of thin air” is the same as a superstitious villager describing a photograph as witchcraft.
That house would not be over-valued if that money WASN’T ALREADY IN THE SYSTEM.
The money ISN’T in the system now. That house is overvalued because house appraisals are based on comparable SALES. Actual transfers of value from one to another.
616,000 new home sales (single-family) in 2022 and
5,950,000 existing home sales (single-family) in 2022
determine the lendable value of well over
100,000,000 single family houses (most of which can get some level of cash-out refi)
Talk about a house built on a teeny tiny foundation. What do YOU think the impact on housing prices would be if every house went to market? Or even 20%? The money for that does not remotely exist – now. Rather, the banking system would totally explode.
IMO this is actually the main reason 80% or so of all residences are now in R1 zones. Banks are, correctly, petrified that there would be fewer comps with single family mixed with duplexes mixed with light commercial in a single (or even small) neighborhood. Meaning a house lending market that is much more leveraged and risky.
It’s also a reason, we have done everything we can to eliminate mobility. That used to be the signature of America. Washington [D.C.] is not a place to live in. The rents are high, the food is bad, the dust is disgusting and the morals are deplorable. Go West, young man, go West and grow up with the country.. Guess what happens to the DC housing market now if people (esp young people) see that as an option? Homeownership can be a road to serfdom. At an aggregate level.
Ugh, you read an article in 2014 and again, it has led you down the path of arrogantly stating shit you don’t understand.
“Money is CREATED by a new loan. Out of thin air in fact.”
This is what I mean. Any person who uses “Out of thin air” for commercial banks does not understand how the monetary system works.
Commercial bank money is a conversion of an asset- specifically the Borrower’s promise to pay back the loan. (Remember that last part- promise to repay, NOT value of the purchased asset. We’ll get back to that.) When a loan is created, the bank is monetizing that contract.
If banks could just pull money out of thin air, they wouldn’t have any constraint on lending, and obviously wouldn’t have had to be bailed out in 2008. But they are constrained, and did need to be bailed out.
In simple terms, when a bank loans you money, they aren’t conjuring money out of thin air, they are pulling from a limited pool of issuable IOUs that everyone treats like dollars. They now have FEWER available funds to loan to someone else. When you repay the Bank, you are not “destroying money”, you are replenishing the pool of available funds. And within seconds or hours, that bank will turn around and issue money again, because that is how banks ultimately make a profit.
The two primary drivers of a bank’s “loanable pool” size are 1) their capital reserves and 2) the cost of settling accounts with other banks. The thresholds for capital reserves are set by regulation. The VALUE of these reserves is dictated by a combination of factors, including market performance, and increasingly by Federal Reserve Monetary policy. Through QE and other mechanisms, the Federal Reserve props up long term debt and equity prices, which inflate’s the Bank’s reserves and ability to loan. Further, the Federal Reserve’s interest rates directly impact the cost of settling accounts with other banks, and therefore the bank’s pool of loanable resources.
So, it doesn’t take a banker to realize that the following is just incorrect:
“5,950,000 existing home sales (single-family) in 2022 determine the lendable value of well over 100,000,000 single family houses (most of which can get some level of cash-out refi)”
The asset value of homes is not what determines the value of a loan. It is the borrower’s ability to repay that loan. Imagine if you were broke and homeless, and went to the bank and said, “Give me $1.2 Million dollars for this $1.5 Million house!” The bank would reject you- EVEN THOUGH the house was worth more than the loan. Because the HOUSE is not what is valuable to the Bank- it is your ability to pay back the loan.
This is not to say that the home value is unimportant, just that it is not what drives the value of the loan. In simple terms, a loan’s value as an asset is the Repayment Value of the loan (Loan + Interest), multiplied by the probability that it will be paid off in full, discounted for Net Present Value. The likelihood of repayment is affected by the debt-to-home-value, but that is just impacting a probability multiplier, not the expected return.
And this is your general problem, again and again. You are confusing asset prices as the CAUSE of inflation, rather than a symptom. People can get larger loans because (generally) their employers get easy money. All this easy money comes from banks because THE FEDERAL GOVERNMENT (via capital reserve requirements) AND FEDERAL RESERVE (through asset manipulation and exchange rates) are giving them a larger (but finite) pool of loanable bank notes.
To put it even more simply, if a bank gives you a loan, they cannot give a loan to someone else- if they did, they would risk insolvency. That is the opportunity cost, and it is not inflationary. If the Federal Reserve buys up long term debt and bank securities, to pump up a bank’s capital reserves, that money is now added to the system, allowing banks to loan out more. And the opportunity cost is literally inflation.
“…The asset value of homes is not what determines the value of a loan. It is the borrower’s ability to repay that loan…”
This point is true in all transactions and is commonly ignored or simply not understood:
There are no intrinsic values of an asset or any economic good: ALL transaction prices are set by the buyer. The seller can ask for a certain amount, but until that amount is seen as proper by a buyer, no transaction takes place.
Sellers or real-estate agents do not determine the real estate market values; the buyers do.
And to carry your point further, how does the buyer set these prices?
1) The Borrower’s ability to repay. This is directly affected by the economy, their jobs, and therefore generally the amount of money in the system. Again, note that it isn’t high house prices powering buying, but the opposite. A buyer gets a raise, and now they can afford a bigger house, and this drives up the price of houses. This is impacted by Fiscal policy (taxing, handouts, credits, etc) from governments, and the Fed’s monetary policy pumping more money into the system.
2) Loanable capital. Buyers cannot get a loan if the bank has deployed all of its loanable money. So you can see how JFear’s argument falls apart here. If Assets all went up in value because some appraiser waved a wand and said “+25%!”, we didn’t pump +25% money into the system. The Bank’s loanable pool is largely the same (some of their real estate holdings might go up in value, but that is not material for most banks). Loanable funds increase when the government loosens capital reserve requirements, or when the Fed pushes Banks’ capital structure up through QE.
3) Low Interest rates mean that the payments on a loan are lower, meaning that the Buyer can afford a larger loan. Loan interest rates are directly impacted by the short term interest rates set by the Federal Reserve.
This all still goes back to the Federal Reserve and to a smaller extent, the Federal Government.
To put it even more simply, if a bank gives you a loan, they cannot give a loan to someone else- if they did, they would risk insolvency.
That’s just not true. It is a myth. A widely believed myth (one that eg is a reason why we do not include prices of assets in what we include in the prices of goods and call ‘inflation’) but still a myth. And a myth that can in fact be proven false.
One that would make for a good argument (in the debate sense) and that you seem interested in.
But these Reason comment sections are the last place for that to ever occur what with the vast majority of commenters who think arguments are merely a way to pose, vent, fling poo, and try to create a heckler’s veto.
It can’t occur in this thread because this thread is dead.
It can’t occur in the best place for this to occur – a place like Congress where the argument could actually lead to change. Because of the combo of the above heckler’s veto and the power of the corrupt who benefit by sustaining the myth.
So I’m not going to keep this going even if it was one of the better discussions I’ve had here.
“That’s just not true. It is a myth….And a myth that can in fact be proven false….So I’m not going to keep this going even if it was one of the better discussions I’ve had here.”
This is classic JFear. I provided ample evidence you were wrong, and you don’t admit to it. Much like in our Climate Change debate where I proved you wrong, and you just shifted to other arguments.
https://reason.com/2022/08/19/incompetent-people-are-often-too-incompetent-to-realize-just-how-incompetent-they-are-says-new-study/?comments=true#comment-9662173
You aren’t interested in debate at all. You are interested in declaring other people to be imbeciles, and yourself all-knowing. And when you get called on it, you ghost for a few days hoping that everyone will forget. But that is why I keep these links- to show the pattern.
Nearly replied before noticing it was you who already had.
Yes, very typical; ‘I can prove you wrong but I’m just too busy!’
Here’s an obvious, prima facie, proof he is wrong:
“American Debt: Mortgage Debt Reaches $10.04 Trillion in Q4 2020”
search “total value of us outstanding mortgages”
Compared to:
M1 = 20716.1 USD Billion in Jan 2022
https://tradingeconomics.com/united-states/money-supply-m1
(Ignoring 2021 inflation) if every one of those mortgages were 100% unpaid and 100% a result of “thin air” money (neither of which are true), that amount would represent <0.5% of M1. So even if JFree's argument were true, (which it isn't) the effect of mortgages (as "thin air money") represents the proverbial 'drop in the bucket'.
Further, he focuses only on housing lending, ignoring commercial real estate and for that matter, business debt in general.
You mentioned an article he read; got his attention and never looked for other explanations? This is not a person knowledgeable of economics, nor business finance. Nor interested in learning.
Dunno if you were here when JFree kept waving the WuFlu PANIC flag, and getting called out regarding his predictions of the severity. JFree and other chicken littles own the economic losses and the harm done to the kids and STILL refuse to admit it was a mistake to used government power in such a situation:
https://www.nber.org/system/files/working_papers/w29928/w29928.pdf
A FINAL REPORT CARD ON THE STATES’ RESPONSE TO COVID-19
When will our debt ever be paid down? We haven’t paid down a single penny in debt in 20 years. If we operate in the status quo, any additional debt we add will also not be paid down ever, and we will just pay interest on it forever.
This is why the Student loan forgiveness plan is so terrible. It takes relatively low interest loans and pays them off with a loan that will never be paid off. If the country were to manage to survive 1000 years, those people will still be paying taxes to pay off the interest from forgiving student loans as a one time political stunt.
At this point, I am operating under the assumption that no increase in debt will ever be paid down. Just interest payments forever.
The last time U.S. was debt free Andrew Jackson was president! Yes, a “going concern” can stay perpetually in debt but not at ever increasing amounts forever. It is past time to start tapping the brakes and trying to live within our means.
Yes it is past time. But it ain’t gonna happen for even ONE year. Much less $31 trillion worth of years. Equal to maybe 7 or 8 years of total government shut down – no SS, no Medicare/Medicaid, no defense spending, no interest payments, no debt rollover, no risk-free bond collateral therefore no new loans for anything from a house to a startup to working capital for a business, no reserve currency therefore no trade deficit therefore higher prices for all goods.
At a certain point we gotta deal with reality. This existing debt can’t be paid. Not won’t be paid. Can’t be paid. We still can – and do every day – fob it off to our kids so that we can avoid doing any of the above. And lie to them and ourselves that they can pay it and if they don’t it’s because they won’t and are just lazy.
That is our legacy to the future. And we don’t even have the balls to admit that
“…And we don’t even have the balls to admit that”
JFree has a turd in his pocket.
The student loan forgiveness program is not remotely a $31 trillion intergenerational wealth transfer program going the other direction. One is a tail. The other is an elephant. Focus!
IMO student loan forgiveness is nothing but flimflam and crumbs to get the younger generations to buy into the $31 trillion and rising fast program.
If student loans default, so should $31 trillion. Debts that can’t be paid won’t be paid. Write-offs and jubilee are the only way people can actually be born free rather than into $31 trillion of debt slavery.
“…Inflation remains a purely monetary phenomenon…”
Uh, yeah, and a serious one, dumbass.
Good thing people don’t need money to live.
(Is this a DNC goal?)
“debt starts getting paid down” — good one.
Keynesians used to say they would borrow when the economy was bad, and pay it back when the economy was good. Now they just borrow even more no matter what.
Keynesian economics is, like Marxism, based on a fantasy.
Keynes assumed governments would reduce taxes in good times. Marx assumed humans would act in other than their best interest.
Ha and ha.
If there is one thing that has come out of this economic malfeasance, it is that we now have an entire 2 generations that went from “Inflation is not a big deal” to “Holy cow inflation is the worst thing economically that can possibly happen to the poor and middle class”
I mean they still think it is entirely because greedy corporations somehow became greedier, and they think socialism will somehow solve it, but at least they realize inflation is a big freaking deal.
Socialism won’t solve it, so they’ll turn to price controls…..
“COVID Stimulus Spending Played ‘Sizable Role’ in Inflation”
Tony and turd surprised!
I said this all along, you dumbass.
You Trump cultists blamed it on Biden killing construction of the Keystone XL – which was always stupid.
turd lies; it’s all he ever does. turd is a kiddie diddler, and a pathological liar, entirely too stupid to remember which lies he posted even minutes ago, and also too stupid to understand we all know he’s a liar.
If anything he posts isn’t a lie, it’s totally accidental.
turd lies; it’s what he does. turd is a lying pile of lefty shit.
Because it’s shrike, I’ll bet dollars to donuts that nobody said inflation was only because of shutting down Keystone, let alone a driving force.
turd lies; bet on it.
Let’s see.
Magically expanding the money supply created inflation.
Government handouts of cash created inflation.
Expanding the money supply in order to hand out cash created proto-hyper-inflation.
But official government mouth-pieces and compliant economists changed definitions and told us there was no inflation. Equally compliant media agreed.
So, is the St. Louis Fed producing fake news or sedition?
No shit. We all said this
Got any more brain busters?
It would be great consolation if the people who love wealth distribution could realize that wealth distribution is more than moving money around. Moving money doesn’t keep a supply chain up. Moving money doesn’t open an economy that’s shutdown by authoritarian dictate.
You can thank capitalism for actually making the world work. Moving money around isn’t really what society’s all about.
I disagree. Moving money does keep a supply chain up. Without free movement of money, capitalism couldn’t exist.
Without free movement of money, it wouldn’t be capitalism.
Point is: there’s goods and services on the other side of all of those exchanges for money. That’s what society is much more about, and much less redistributive wealth transfers.
“Covid stimulus spending played a sizeable role in inflation.”
Duuuhhhh, ya think so?
Money creation is inflation.
Pretty much my response as well.
Odd how Libertarian Economists claimed that the trillions Ronald Reagan borrowed were anti-inflationary.
So were they lying then or are they lying now?
Got a cite for that claim, lefty shit? I’d say you’re lying every time you touch a keyboard.
We’re waiting, VendicarD.
You don’t say?
You mean if you give everyone 4 grand all at once, prices go up?
Not everyone got the checks. The folks that pay more into the system than what they receive were exempted. Prices still increased for them though.
Yeah, I know. I didn’t get any checks.
I will, however, get the privilege of paying them back, forever.
Pure fiction. The Federal Reserve has been propagating this fantasy that this inflation is due to you and I spending too much money. It’s not! This inflation is monetary inflation. Meaning the federal government spent a ton of money it didn’t have, so the Federal Reserve increased the money supply to the tune of $4 trillion! More money with nothing to back it up devalues the currency, which is EXACTLY what happened. In point of fact, consumers aren’t buying more goods and services, they are buying less. An inflation rate of 8% means you have to spend about 8% more to purchase the same goods and services as last year. GDP is only up 2% and much of that is because we are exporting more goods and services to other countries. Domestic consumption is down.
“…More money with nothing to back it up devalues the currency, which is EXACTLY what happened…”
Yep.
COVID Stimulus Spending Played ‘Sizable Role’ in Inflation The Rest Was Biden and the Democrats Stupid Green Bills.
Actually the covid relief bills were too, authored by Democrats, sponsored by Democrats, introduced to Congress by Democrat, but stupid Republicans voted for it too, it was an election year and the Democrats would have been screaming the Republicans don’t care about Americans. So now we have over $10 trillion in printed money causing inflation, and it has only started, as we saw with the Railroad workers and Minnesota Nurses, the price/wage cycles has barely started. That will drive us to recession. It seems no one in DC has any economic sense.
AOC and other lefties are blaming our huge annual deficit on the “Trump tax cuts.” Nonsense.
AOC never gets ANYTHING right. Which is the polite way to say that she ALWAYS LIES.
Federal tax revenues:
2017 — $3.32 trillion. That’s the year the tax reform took effect.
2021 — $4.05 trillion.
It’s ironic that after all these stimulus programs (not to mention Build-Back-Better and the hilariously named Inflation Reduction Act), printing and spending trillions of dollars, one undeniable result is that the rich have gotten richer and the poor poorer. It’s enough to make you think… Is more government the solution or the problem?
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No shit. You print $5 trillion and hand it out for people to spend, and then are surprised by inflation?