“Is there any good reason to believe prices going up hurts people who make less money?” - Nobel Prize-winning economist Paul Krugman

[initforme]

I listen to myself. I've forgotten more than any politician will ever know.

 

[g5000]

If inflation does not subside, then the Fed has to raise interest rates sooner or later.

And then we go into a recession.

The US government and the Fed want to run things hot for a while until we have full employment, and so the government can keep borrowing money cheaply.

It's anybody's guess what will happen to the inflation rate. I suspect it will subside at least to some degree now that everyone has spent their stimulus money.

 

[SassyIrishLass]

Krugman is an imbecile...always has been

 

[lennypartiv]

It's anybody's guess what will happen to the inflation rate. I suspect it will subside at least to some degree now that everyone has spent their stimulus money.

You Democrats shot your wad awfully fast.

 

[initforme]

Keep the wealthy out of office. Things improve.

 

[basquebromance]

 

[basquebromance]

The big story of the year is the worst inflation in almost 40yrs. It is a tax on Americans. Families have had to spend $3,500 more than they did last year just to tread water. It is directly attributable to Democrats' multi-trillion-dollar inflationary spending earlier this year.

 

[basquebromance]

 

[bendog]

The point Krugman made was that's it "alternate fact universe" to say every worker is fucked by inflation. IF you have a mortgage at the current refinance rates, don't lose a job, and esp if you have a spouse/family member who can't earn a little more INFLATION CAN BE YOUR FRIEND. And govt benefits are tied to inflation. Soc Sec is, but less so that during the 70s

But as G5000 pointed out, when the Dems say "the fed won't let it get out of hand" ignore, or simply are too stupid to know, is that if tapering the bond purchases doesn't work, interest rates go way up. Krugman did not disuss that. And we don't know if tapering will work because the Fed has not bought up all the debt and even private bonds. Right now we're probably looking at three interest rate hikes next year, each of a quarter point or percent. That is not so high as to create a recession.

But if that doesn't do it, then we're all pretty fucked because a recession would be the only tool the Fed has left.

And expanded child tax credits and family leave all tend to get families to spend more. Fixing roads and water supplies don't cause people to spend more, an neither does reducing the deficits by actually paying without debt dollars, medicare and soc sec that will have to be paid one way or another. But as Manchin unfortunately points out, the progressives are running the dem govt right now. So cong and the WH are not on the same page as the Fed

 

[ColonelAngus]

This asshole is trying to say that hyperinflation does not hurt the poor?

Why are poor people in Venezuela eating their pets?

 

[BertramN]

This is not rocket science, and actually is entry level economics. Although if you're under 40, it may be new territory.

Who Does Inflation Hurt Most?

Who does inflation hurt and who does it help?

inflationdata.com

But that doesn't mean inflation at over 5% is a good thing. It could mean, though, that inflation at even 6-8% for just a couple of years is not ALL bad. People on fixed incomes and making just enough to get by, and not having the ability to make more per household, would be fucked over.

It might seem cruel and unfair to those who lost secure retirements in the housing collapse, and who might have had mortgages at 3%

Any process, whether economic, meteorological, domestic terrorism, politically motivated, etc, if Big Business sees a profit, and the billionaire class benefits, conservatives consider their policies winners.

As for the 99.9% of the remaining population, if they get fvcked, conservatives have always said, "That's good too."



.

 

[basquebromance]

 

[CrusaderFrank]

why would you believe anything this guy says

Paul "Wrong in the Trillions Column" Krugman

 

[basquebromance]

 

[MinTrut]

why would you believe anything this guy says

Krugman!