Ordinary Guy
Diamond Member
- Jul 16, 2021
- 2,148
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Carter is one happy man today as all indications are Biden will be 20 times harder on the working class than Carter!! -OG
The Commerce Department reported today that the high-flying U.S. economy with a 6.7% rate of growth in the U.S. economy for the first half of this year crash landed in the third quarter (July-September) with an anemic rate of just 2 percent.
Those under the age of 40 probably don’t even know what that is – and they’ve certainly never experienced it up front and personal.
Here’s the official definition from Investopedia: Stagflation is characterized by slow economic growth, which is at the same time accompanied by rising prices (i.e. inflation)."
The last time we saw this phenomenon was in the 1970s during the era of presidents Nixon, Ford, and Carter. Years of persistently high inflation triggered a surge in unemployment. That then led to the term "misery index." The sum of the inflation rate and the unemployment rate. It exceeded 18% in Carter’s last year in office.
And then it was…Jimmy we hardly knew ye. With the economy sagging, Carter lost a landslide election to Ronald Reagan.
Worse yet has been the expansion of welfare programs like food stamps and unemployment benefits (not tied to working). These free cash and benefit programs incentivized workers to stay out of the workforce and collect government payments that when added all up could be the equivalent of a $75,000 a year job in many states. The big surprise was that the labor force shrunk and companies had 11 million jobs they couldn’t fill.
The most worrisome trend is the almost overnight decline in business investment. Business investment or "Cap X," as it is sometimes called, is the seed corn of a productive economy.
Companies have slowed their investment spending in part because of the imminent threat of higher taxes and a steel fist of new regulations has cautioned businesses to hit the pause button.
Why invest when the politicians in Washington are threatening to tax away your earnings in the name of paying your "fair share?" Businesses that make profits are now demonized as enemies of the people in this new progressive culture.
The income redistributionists who seem to be driving the Democratic Party agenda are soon going to learn that there pixie dust economic doctrine called Modern Monetary Theory – which posits that Congress can spend and borrow ad infinitum -- is a giant hoax.
https://www.foxbusiness.com/markets/...-stephen-moore
The Commerce Department reported today that the high-flying U.S. economy with a 6.7% rate of growth in the U.S. economy for the first half of this year crash landed in the third quarter (July-September) with an anemic rate of just 2 percent.
Those under the age of 40 probably don’t even know what that is – and they’ve certainly never experienced it up front and personal.
Here’s the official definition from Investopedia: Stagflation is characterized by slow economic growth, which is at the same time accompanied by rising prices (i.e. inflation)."
The last time we saw this phenomenon was in the 1970s during the era of presidents Nixon, Ford, and Carter. Years of persistently high inflation triggered a surge in unemployment. That then led to the term "misery index." The sum of the inflation rate and the unemployment rate. It exceeded 18% in Carter’s last year in office.
And then it was…Jimmy we hardly knew ye. With the economy sagging, Carter lost a landslide election to Ronald Reagan.
Worse yet has been the expansion of welfare programs like food stamps and unemployment benefits (not tied to working). These free cash and benefit programs incentivized workers to stay out of the workforce and collect government payments that when added all up could be the equivalent of a $75,000 a year job in many states. The big surprise was that the labor force shrunk and companies had 11 million jobs they couldn’t fill.
The most worrisome trend is the almost overnight decline in business investment. Business investment or "Cap X," as it is sometimes called, is the seed corn of a productive economy.
Companies have slowed their investment spending in part because of the imminent threat of higher taxes and a steel fist of new regulations has cautioned businesses to hit the pause button.
Why invest when the politicians in Washington are threatening to tax away your earnings in the name of paying your "fair share?" Businesses that make profits are now demonized as enemies of the people in this new progressive culture.
The income redistributionists who seem to be driving the Democratic Party agenda are soon going to learn that there pixie dust economic doctrine called Modern Monetary Theory – which posits that Congress can spend and borrow ad infinitum -- is a giant hoax.
https://www.foxbusiness.com/markets/...-stephen-moore