Fixing Inflation

[task0778]

Increasing wages is paramount to fixing inflation

This is absolutely, positively, beyond a shadow of a doubt wrong. What do you think happens when wages go up? Answer: prices go up, every effing time. And that is inflation in a nutshell. When the gov't arbitrarily says you have to pay this person more wages without additional productivity, that is inflationary.

 

[initforme]

This is absolutely, positively, beyond a shadow of a doubt wrong. What do you think happens when wages go up? Answer: prices go up, every effing time. And that is inflation in a nutshell. When the gov't arbitrarily says you have to pay this person more wages without additional productivity, that is inflationary.

So we need to lower wages? That's beyond dumb. Workers will quit en masses.

 

[task0778]

So we need to lower wages? That's beyond dumb. Workers will quit en masses.

I didn't say wages had to be lowered. But raising wages without a corresponding increase in productivity is inflationary. That is just reality.

 

[Flopper]

If, G-d willing, we have an election in November and Trump wins, he faces three real crisis: Invasion, WWIII and Inflation.

I think Trump will have to declare a National Emergency to handle all three simultaneously,

Inflation can be handled in two ways: delete government programs and departments and/or release the suppressed US Patents that will lower the cost of energy to pennies and create real sustainable economic growth.

Cutting government programs is 100 years overdue and should be done. It serves a twofold purpose of lowering inflation and increasing freedom

A deflationary depression is not ideal and is the usual way out of inflation. It need not be so

As of July 11, 2024, the US inflation rate is 2.97%, which is lower than the long-term average of 3.28%. This is down from 3.27% the previous month and 2.97% the previous year. Nothing needs to done about inflation. It is coming down and according to the FED will be close to 2% by the middle of next year.

Thankfully what you propose will not happen even if republicans controlled both the congress and the Whitehouse because they do not want to be blamed with the worst recession of the 21st century.

 

[Flopper]

So we need to lower wages? That's beyond dumb. Workers will quit en masses.

The U.S. is "no longer an overheated economy" with a job market that has cooled from its pandemic-era extremes . What we need is for the job market to stay at the current level. The Fed is planning on one interest rate cut by the end of the year. If job figures are down next month it could come sooner. If the job market heats up again, the cut may not come this year.

 

[jwoodie]

As of July 11, 2024, the US inflation rate is 2.97%, which is lower than the long-term average of 3.28%. This is down from 3.27% the previous month and 2.97% the previous year. Nothing needs to done about inflation. It is coming down and according to the FED will be close to 2% by the middle of next year.

Thankfully what you propose will not happen even if republicans controlled both the congress and the Whitehouse because they do not want to be blamed with the worst recession of the 21st century.

Are you suggesting that we can maintain $2 trillion deficits forever without inflation? And how will we be able to service our growing debt? I think dollar devaluation/inflation is our only alternative.

 

[initforme]

Increasing wages is paramount to fixing inflation

So you would like wages to stay flat? It's no workers job to sacrifice for anything.

 

[task0778]

So you would like wages to stay flat? It's no workers job to sacrifice for anything.

I think an employee should be paid according to his worth. It isn't the employer's job to pay somebody more than they are worth in order to keep up with inflation. It's a business decision rather than a political one, what's the cost vs benefit to pay somebody more money.

At the macro level, if you force higher wages without a corresponding increase in productivity then you have higher prices for the same thing and that is inflation.

 

[Fort Fun Indiana]

If, G-d willing, we have an election in November and Trump wins, he faces three real crisis: Invasion, WWIII and Inflation.

I think Trump will have to declare a National Emergency to handle all three simultaneously,

Inflation can be handled in two ways: delete government programs and departments and/or release the suppressed US Patents that will lower the cost of energy to pennies and create real sustainable economic growth.

Cutting government programs is 100 years overdue and should be done. It serves a twofold purpose of lowering inflation and increasing freedom

A deflationary depression is not ideal and is the usual way out of inflation. It need not be so

Ironically, the economic policies the orange pile of stupid is proposing are all hyper inflationary.

He counts on his base being pretty dumb.

 

[CrusaderFrank]

Ironically, the economic policies the orange pile of stupid is proposing are all hyper inflationary.

He counts on his base being pretty dumb.

Good thing I’m not in his base

Is he proposing to cut spending and government departments? Will he follow through?

 

[Fort Fun Indiana]

Good thing I’m not in his base

You are the poster boy for his base, Frank.

YOU are the reason the orange pile of shit thinks he can get away with doing or saying anything at all.

YOU are the reason he can spend half his time talking g about "Bidens inflation", and the other half of his time lauding hyper inflationary policies like tariffs.

Because you don't care.

 

[CrusaderFrank]

You are the poster boy for his base, Frank.

YOU are the reason the orange pile of shit thinks he can get away with doing or saying anything at all.

I’m writing in Milei

 

[JohnDB]

If, G-d willing, we have an election in November and Trump wins, he faces three real crisis: Invasion, WWIII and Inflation.

I think Trump will have to declare a National Emergency to handle all three simultaneously,

Inflation can be handled in two ways: delete government programs and departments and/or release the suppressed US Patents that will lower the cost of energy to pennies and create real sustainable economic growth.

Cutting government programs is 100 years overdue and should be done. It serves a twofold purpose of lowering inflation and increasing freedom

A deflationary depression is not ideal and is the usual way out of inflation. It need not be so

And thank you for proving that listening to nothing but conspiracy theory nonsense is not a good idea....like ever.

A tightening monetary policy is what is needed to curb inflation...that and time for wages and the economy to catch up to make it have no effect. (You can't put the manure back in the horse with a fiat currency)
You do need to cheapen/devalue the dollar on the Forex so that American goods can be exported abroad....meaning inflation is not finished.

The USA has several areas of export that surpass the rest of the world....intellectual property, food, and entertainment. Other items can be exported but the competition is fierce.

On top of this....Chinese/Singapore intellectual property thiefs need to have their import licenses revoked EVERYWHERE.
There's literally no excuse for not doing this.
Trump is reluctant to use the military....but if he does the overwhelming force is going to be fast and furious and then out. Trump is no fan of the weapons manufacturing industry leaders....its a personal thing for him. Dead people make for poor customers.

 

[Fort Fun Indiana]

I’m writing in Milei

The only things we can really do about inflation are price controls and fiscal policy changes (Fed, rates).

Price controls are not always a good idea, because they can cause shortages.

Rate increases shift the economic pain of inflation most to those who can bear it least.

There just aren't good choices, here.

 

[CrusaderFrank]

The only things we can really do about inflation are price controls and fiscal policy changes (Fed, rates).

Price controls are not always a good idea, because they can cause shortages.

Rate increases shift the economic pain of inflation most to those who can bear it least.

There just aren't good choices, here.

The best way is for the government to control spending
.
Milei in Argentina did just that and eliminated inflation in 6 months

 

[Fort Fun Indiana]

The best way is for the government to control spending

False. And that's not even really on the list. Inflation these days is generally a global phenomenon, when it comes to our economy.

The best we can do against global inflation is to continue to secure the economic supply lines of the global economy.

Surely you didn't think we are the world's police because we are nice guys.

 

[Flopper]

Are you suggesting that we can maintain $2 trillion deficits forever without inflation? And how will we be able to service our growing debt? I think dollar devaluation/inflation is our only alternative.

The 2 trillion dollar deficits were aberrations caused by the deep cut in government revenue due to the Trump tax cuts and increased spending due to to Covid.

The current deficit for 2024 is estimated at 1.86 trillion. The only years in history where the deficit exceed two trillion dollars was Trump's last year in office, 2020 -3.13 trillion and Biden's first year in office 2021 -2.78 trillion.

The Congressional Budget Office deficit estimates in trillions are:
2025- 1.78
2026- 1.55
2027- 1.51
2028- 1.57
2029- 1.48

U.S. government - Budget surplus or deficit 2029 | Statista

In 2023, the U.S.

www.statista.com

The Federal Reserve finds little evidence that deficits have caused significant inflation due to fact that the FED using monetary policies has generally nullified the effect of deficits on inflation. However, where the Fed is slow to act such as in 2022, deficit spending can certain have impact on inflation. It should be recognized that federal deficits are only one factor that can lead to inflation.

Do Budget Deficits Cause Inflation?

Business Review — Is there a relationship between government budget deficits and inflation?

www.philadelphiafed.org

 

[initforme]

A mass resignation to reduce the labor force would help immensely.

 

[Harpy Eagle]

The best way is for the government to control spending
.
Milei in Argentina did just that and eliminated inflation in 6 months

Interesting. A 4.6% inflation rate equal inflation eliminated in Argentina but in the US a 3.3% inflation rate is the end of the world as we know it

 

[CrusaderFrank]

Interesting. A 4.6% inflation rate equal inflation eliminated in Argentina but in the US a 3.3% inflation rate is the end of the world as we know it

Please look up what inflation was in Argentina before Milei was sworn in