A simple economic lesson... raise capital gains to 43% will do what?

[bendog]

And that is what causes the inflation and you are going to complain because those at the bottom need more to keep up?

I'm not sure that the Fed increasing bank liquidity (it does not "print" money) leads to inflation. The fed was doing that throughout Obama and Trump's presidencies and .... no inflation. Logically thinking, I'd say at some point it "should" make other countries think our dollar is worth less, but then again if GNP increases to keep debt at some ration to gnp that doesn't cause concern .... maybe not!

We have inflation if food because crop yields (and meat) is down on global warming. We have inflation in houses because we don't have enough houses and interest rates are low, but we had that before the pandemic, and it's just back only with more pent up demand now. We have inflation in cars because of a chip shortage that was at least partially caused by the pandemic. Gas prices are actually lower than they were, but it may be a concern that Biden may be causing future domestic production to lessen. And we haven't built a refinery in decades because oil companies don't think demand will make construction.

The Dems econ plan is to increase consumer demand by causing workers to have more money to spend. THAT will either cause the investor class to up production, and THAT WOULD BE GOOD FOR EVERYONE. OR, production will not keep pace with demand, and then we'd have inflation, and THAT WOULD BE BAD FOR MOST EVERYONE EXCEPT THOSE WHO OWN ASSETS THAT WILL APPRECIATE

 

[pknopp]

I'm not sure that the Fed increasing bank liquidity (it does not "print" money) leads to inflation. The fed was doing that throughout Obama and Trump's presidencies and .... no inflation. Logically thinking, I'd say at some point it "should" make other countries think our dollar is worth less, but then again if GNP increases to keep debt at some ration to gnp that doesn't cause concern .... maybe not!

We have inflation if food because crop yields (and meat) is down on global warming. We have inflation in houses because we don't have enough houses and interest rates are low, but we had that before the pandemic, and it's just back only with more pent up demand now. We have inflation in cars because of a chip shortage that was at least partially caused by the pandemic. Gas prices are actually lower than they were, but it may be a concern that Biden may be causing future domestic production to lessen. And we haven't built a refinery in decades because oil companies don't think demand will make construction.

The Dems econ plan is to increase consumer demand by causing workers to have more money to spend. THAT will either cause the investor class to up production, and THAT WOULD BE GOOD FOR EVERYONE. OR, production will not keep pace with demand, and then we'd have inflation, and THAT WOULD BE BAD FOR MOST EVERYONE EXCEPT THOSE WHO OWN ASSETS THAT WILL APPRECIATE

Prices have been going up for years. Go back and look at all the times I replied "Ask the person grocery shopping if prices are going up or not".

The Fed isn't just increasing "bank liquidity". If the trillions it has created over the last 13 years had simply gone to creating manufacturing it wouldn't have been so bad. It wasn't. It was done to inflate the markets.

 

[bendog]

Prices have been going up for years. Go back and look at all the times I replied "Ask the person grocery shopping if prices are going up or not".

The Fed isn't just increasing "bank liquidity". If the trillions it has created over the last 13 years had simply gone to creating manufacturing it wouldn't have been so bad. It wasn't. It was done to inflate the markets.

But food prices have been predicted to rise for decades. Production had not kept up with demand. It has nothing to do with banking or spending. Inflation can arise from a number of causes, and combinations. The Dems answer is to try and increase incomes of workers. The gop had it's shot with its tax cut. Voters voted for a change. We'll see if it works.

 

[JohnDB]

But food prices have been predicted to rise for decades. Production had not kept up with demand. It has nothing to do with banking or spending. Inflation can arise from a number of causes, and combinations. The Dems answer is to try and increase incomes of workers. The gop had it's shot with its tax cut. Voters voted for a change. We'll see if it works.

As a player in commodities...
Most of American groceries are based off of what happens in South America...from feed to consumables.

They have had a lot of drought.

On top of this America produces the most food of anybody. We sell processed groceries to most of the world from lightly processed to heavily processed.

But food processing since the pandemic has been greatly reduced. From the low wages to infections of staff. It's a disaster area. That's all there is to it.

Labor got expensive for the greatly reduced amount available. Insufficient amounts of labor for greatly increasing priced commodities.

And if our food supply chains don't improve soon...we are going to be in real trouble as the whole world begins to starve from exorbitantly high prices for food. In the USA we spend less than 10% of our income on food. Others spend 25% or more on food.

And when supply chains fall apart...the USA will survive the food shortages but others won't. We might not have the variety but at least there will be food. Others won't have food at all.

 

[pknopp]

But food prices have been predicted to rise for decades. Production had not kept up with demand. It has nothing to do with banking or spending. Inflation can arise from a number of causes, and combinations. The Dems answer is to try and increase incomes of workers. The gop had it's shot with its tax cut. Voters voted for a change. We'll see if it works.

When prices go up, wages have to also. It's a simple equation.

 

[hadit]

When prices go up, wages have to also. It's a simple equation.

And yet we've been hearing about how the working class has been losing ground because of inflation.

 

[pknopp]

And yet we've been hearing about how the working class has been losing ground because of inflation.

That's because they have been.

 

[hadit]

That's because they have been.

But you said, "When prices go up, wages have to also. It's a simple equation." It sounds like you're arguing both sides of the coin. On the one hand, you say that rising prices (inflation) raise wages, while OTOH you say that the middle class is losing ground because of inflation (rising prices). That means that you're simultaneously arguing that prices are driving higher wages and that wages are not rising to meet higher prices.

 

[pknopp]

But you said, "When prices go up, wages have to also. It's a simple equation." It sounds like you're arguing both sides of the coin. On the one hand, you say that rising prices (inflation) raise wages, while OTOH you say that the middle class is losing ground because of inflation (rising prices). That means that you're simultaneously arguing that prices are driving higher wages and that wages are not rising to meet higher prices.

I never argued that inflation raises wages.

 

[hadit]

I never argued that inflation raises wages.

What do you mean then when you say, "When prices go up, wages have to also. It's a simple equation."? Prices going up is inflation, yes?

 

[pknopp]

What do you mean then when you say, "When prices go up, wages have to also. It's a simple equation."? Prices going up is inflation, yes?

For people to live wages have to go up. That has been the fight for years now. Trying to get minimum wages raised. Inflation does not raise wages. people and employers have to.

 

[jc456]

The Dems econ plan is to increase consumer demand by causing workers to have more money to spend. THAT will either cause the investor class to up production, and THAT WOULD BE GOOD FOR EVERYONE. OR, production will not keep pace with demand, and then we'd have inflation, and THAT WOULD BE BAD FOR MOST EVERYONE EXCEPT THOSE WHO OWN ASSETS THAT WILL

all that does is increase product prices and there becomes a negative impact rather than a positive one. Just admit demofks have no clue about economics. They think with their party rather than the country.

 

[jc456]

For people to live wages have to go up. That has been the fight for years now. Trying to get minimum wages raised. Inflation does not raise wages. people and employers have to.

no, demand should dictate job salaries, not a politician who thinks minimum wage should be 15 dollars. That's the same bullshit every demofk adventure. raise minimum wage and increase prices, which then becomes a negative hit on our economy and real salaries go stagnate. Demofks don't do economics.

It's in the records.

 

[dblack]

For people to live wages have to go up. That has been the fight for years now. Trying to get minimum wages raised. Inflation does not raise wages. people and employers have to.

There's a common misconception that raising minimum wage mandates higher wages. But it doesn't do that. It merely makes it illegal to work for less.

 

[bendog]

There's a common misconception that raising minimum wage mandates higher wages. But it doesn't do that. It merely makes it illegal to work for less.

I always got a raise when it went up .... way back when it actually went up. LOL

 

[dblack]

I always got a raise when it went up .... way back when it actually went up. LOL

LOL

 

[pknopp]

no, demand should dictate job salaries, not a politician who thinks minimum wage should be 15 dollars. That's the same bullshit every demofk adventure. raise minimum wage and increase prices, which then becomes a negative hit on our economy and real salaries go stagnate. Demofks don't do economics.

It's in the records.

When jobs are being sent overseas because a manufacturer does not want to pay the prevailing wages here, all economic "theories" go out the window.

A declining manufacturer base with an increased population combined with massive pumping of the markets does not work.

 

[hadit]

For people to live wages have to go up. That has been the fight for years now. Trying to get minimum wages raised. Inflation does not raise wages. people and employers have to.

Wages, like prices, rise and fall on demand, simply because wages are just another price, in this case the price of labor. When there are more workers wanting jobs than available jobs, the price, or wage, drops. Likewise, when demand for a skill drops, so does the wage. At one time, for just one example, a skilled blacksmith could make a good living. How many can do so today? Same with buggy whip makers. OTOH, when there are more available jobs than qualified job seekers, the price, or wage, goes up and the MW doesn't even enter the equation. We're seeing that now, and wages will have to rise higher than what people can get from the taxpayers for doing nothing in order to fill the jobs.

The bottom line is, producers charge prices high enough to cover their costs and provide a profit. When their costs rise, prices do too, and labor is one of those costs. If wages are not rising, look to the causes. Do the jobs require a particular skill set? If not, the wages will not be high. Is the job in an industry that's dying out? People who understand how VHS tapes work or are very good at renting them won't get paid much. I'm in IT, and if I still had only my original skill set, I would have maybe a handful of companies that might hire me, but not many. I've had to constantly re-invent myself to stay current. That's just the way it works. Why should someone expect to get paid the same when they walk in off the street as someone who's been on the job more than a decade?

 

[pknopp]

There's a common misconception that raising minimum wage mandates higher wages. But it doesn't do that. It merely makes it illegal to work for less.

In some places this is true.

 

[pknopp]

Wages, like prices, rise and fall on demand, simply because wages are just another price, in this case the price of labor. When there are more workers wanting jobs than available jobs, the price, or wage, drops. Likewise, when demand for a skill drops, so does the wage. At one time, for just one example, a skilled blacksmith could make a good living. How many can do so today? Same with buggy whip makers. OTOH, when there are more available jobs than qualified job seekers, the price, or wage, goes up and the MW doesn't even enter the equation. We're seeing that now, and wages will have to rise higher than what people can get from the taxpayers for doing nothing in order to fill the jobs.

The bottom line is, producers charge prices high enough to cover their costs and provide a profit. When their costs rise, prices do too, and labor is one of those costs. If wages are not rising, look to the causes. Do the jobs require a particular skill set? If not, the wages will not be high. Is the job in an industry that's dying out? People who understand how VHS tapes work or are very good at renting them won't get paid much. I'm in IT, and if I still had only my original skill set, I would have maybe a handful of companies that might hire me, but not many. I've had to constantly re-invent myself to stay current. That's just the way it works. Why should someone expect to get paid the same when they walk in off the street as someone who's been on the job more than a decade?

You are leaving out the massive pumping into the markets. I am not interested in outdated economic class theories.