Discussion in 'Economy' started by Kevin_Kennedy, May 28, 2009.
... look at the three major stooges in economics in the U.S...... Larry Summers, Tim Geithner, Ben Bernanke...They've never worked in the private sector...They don't what a balance sheet is...
Sounds like a couple of the supposed economic wizards of smart around here!!
You won't get inflation if there is excess capacity in the economy, which there is now.
Inflation may be coming in the future but that will happen only when economic growth picks up substantially.
what is that Keynesian crap ?
how do you know what capcity is "excess" - are you God ?
and even if i could agree with you that a certain level of unemployment can be considered excess capacity - what makes you think the slack will be taken up anytime in the next 5 years ?
Am I God? No, just educated.
Excess capacity is up to the point where increases in capacity utilization causes prices to rise. Economists estimate that full capacity is around 82% of capacity utilization. It is at that point where bottlenecks in production start causing inflation. Capacity is very low currently.
This is why inflation is not a problem when there is excess capacity in the economy.
Welcome to Welling@Weeden
I don't think the slack will be picked up soon. That was my point.
We won't have inflation until the working class has (or at least feels like it has) extra expendable income.
Given the many trillions in unrealized profits that American have lost in the last six months or so, plus given the rate of unemployment and under-employment I don't think inflation is a problem we're going to be facing soon.
Inflation the next time around is going to really sting the middle class, because food prices haven't really come down from their inflationary highs of '07 and '08. The market is still bearing those prices, so the producers and retailers are keeping prices steady, which means the next round of inflation is going to be a fucking DOOZY.
But hey, it's all good, most of the middle class is buried in debt anyway and has no real understanding of proper saving. Wheel barrow fulls of significantly undervalued currency still pays the debt off the same as it does now.
If you don't know what the hell you're talking about, why not just say so??
Separate names with a comma.