How to Control Inflation

[jonny5]

https://www.washingtonpost.com/us-policy/2022/01/26/inflation-white-house-experts/

Some common sense ideas in here, and some ludicrous ones

-produce more
-stop spending
-cure covid
-free child care
-tax the rich
-more chinese goods and Fed interference
-less regulation
-more regulation
-what inflation?
-free healthcare

And my favorite: price controls! And these are so called experts. Some of them more govt is solution to more govt the problem.

 

[Slartibartfast]

Probably the best thing we can do, given the current situation being mostly caused by supply chain issues, is more domestic production and raw materials investment, investments in automated trucking (especially if trucker attitudes about safety regulations continue to be a problem), and finding more land to put ports on. This will not be a quick fix though.

 

[jonny5]

Probably the best thing we can do, given the current situation being mostly caused by supply chain issues, is more domestic production and raw materials investment, investments in automated trucking (especially if trucker attitudes about safety regulations continue to be a problem), and finding more land to put ports on. This will not be a quick fix though.

Well the best thing to do would be to stop infusing trillions of debt into the economy. At least then it wouldnt get any worse. But theyve already added another 400bn in the first fiscal quarter just in federal debt, so thats unlikely. I dont even know where to find what the Fed is doing.

 

[code1211]

https://www.washingtonpost.com/us-policy/2022/01/26/inflation-white-house-experts/

Some common sense ideas in here, and some ludicrous ones

-produce more
-stop spending
-cure covid
-free child care
-tax the rich
-more chinese goods and Fed interference
-less regulation
-more regulation
-what inflation?
-free healthcare

And my favorite: price controls! And these are so called experts. Some of them more govt is solution to more govt the problem.

Well, the experts have spoken.

They all disagree.

They all promote the political ideologies of the folks that pay them.

Who could possibly have predicted that?

 

[Jkca1]

Probably the best thing we can do, given the current situation being mostly caused by supply chain issues, is more domestic production and raw materials investment, investments in automated trucking (especially if trucker attitudes about safety regulations continue to be a problem), and finding more land to put ports on. This will not be a quick fix though.

I like your ideas but given the low cost of labor in China and elsewhere why build anything in the USA?

 

[CaughtInThe]

control? are you guys for true capitalism or not??

 

[Jkca1]

control? are you guys for true capitalism or not??

You cannot live in the USA and be a "true capitalist". If you think you can you are in denial. Once you pay into the system, you support the economic rules of the system, become part of the system and the system itself is not Capitalist as defined by Marx;

"If the pure capitalism described by Marx ever existed, it has long since disappeared, as governments in the United States and many other countries have intervened in their economies to limit concentrations of power and address many of the social problems associated with unchecked private commercial interests. As a result, the American economy is perhaps better described as a "mixed" economy, with government playing an important role along with private enterprise."

Now if your argument is that you are FOR true capitalism but exist in this system because it's what you have to work with, I get you 100%.

 

[Slartibartfast]

I like your ideas but given the low cost of labor in China and elsewhere why build anything in the USA?

I think we should go for it for any industries that are of national strategic importance. For everything else, I agree, its a tough proposition.

 

[Slartibartfast]

Well the best thing to do would be to stop infusing trillions of debt into the economy. At least then it wouldnt get any worse. But theyve already added another 400bn in the first fiscal quarter just in federal debt, so thats unlikely. I dont even know where to find what the Fed is doing.

There is potential inflation from doing that, but the reality is that money velocity is way down since 2008, so its not having a huge effect.

 

[Slartibartfast]

control? are you guys for true capitalism or not??

True capitalism is a really stupid idea. We tried that during the 1800s and it was a mess that resulted in a lot of maimed or dead workers.

 

[jonny5]

I like your ideas but given the low cost of labor in China and elsewhere why build anything in the USA?

Well theres plenty of developing countries where things could be built with some effort. Like Africa. But yes, the startup cost would be a problem. Ideally we need to lower labor costs in the USA though. Instead we are increasing them.

 

[jonny5]

There is potential inflation from doing that, but the reality is that money velocity is way down since 2008, so its not having a huge effect.

Its way down since 1998 so im not sure money velocity means anything. Money velocity seems to drop sharply with debt increase, maybe because its divisible into GDP which has greatly expanded with debt increase. In essence the govt is increasing the money supply sharply which is stimulating GDP and a lot of that money is going to consumption rather than production, thus slowing the velocity.

 

[Slartibartfast]

Its way down since 1998 so im not sure money velocity means anything. Money velocity seems to drop sharply with debt increase, maybe because its divisible into GDP which has greatly expanded with debt increase. In essence the govt is increasing the money supply sharply which is stimulating GDP and a lot of that money is going to consumption rather than production, thus slowing the velocity.

It tends to drop with personal, but not government debt increases I believe, due to personal debt service. For government, it can keep borrowing and thus does not slow down.

Fixing personal debt will need three things 1. A less expensive environment for high cost purchases (housing, cars, college, etc) 2. People changing money habits 3. Higher household wages on average

for #1, we should probably decrease regulatory burden and look at supply issues, for #2, I have no clue, for #3, we need to stop rewarding corps that offshore jobs and do better at taxing/regulating bad company behavior

 

[rickc]

Only one way to control inflation. Cool off the economy. The Fed is going to do it by raising the cost of borrowed money. The trick is how to cool it off without throwing it into recession. Fed is not too good at that.

 

[jonny5]

It tends to drop with personal, but not government debt increases I believe, due to personal debt service. For government, it can keep borrowing and thus does not slow down.

Fixing personal debt will need three things 1. A less expensive environment for high cost purchases (housing, cars, college, etc) 2. People changing money habits 3. Higher household wages on average

for #1, we should probably decrease regulatory burden and look at supply issues, for #2, I have no clue, for #3, we need to stop rewarding corps that offshore jobs and do better at taxing/regulating bad company behavior

Well for example, money velocity could be decreasing because less people are producing and are just consuming. For example, Person A produces $100, govt takes $20, gives it to B who buys stuff from A. But B doesnt produce anything for A to buy in return.

Now if A and B both produced goods, then they would exchange money more frequently. In essence, govt is creating money, giving it to takers, who consume it instead of using it to create more money.

 

[Slartibartfast]

Well for example, money velocity could be decreasing because less people are producing and are just consuming. For example, Person A produces $100, govt takes $20, gives it to B who buys stuff from A. But B doesnt produce anything for A to buy in return.

The unemployment rate is quite low by a variety of measures and wages are rising. I am not sure how you came to this conclusion.

Now if A and B both produced goods, then they would exchange money more frequently. In essence, govt is creating money, giving it to takers, who consume it instead of using it to create more money.

Banks create money, not people. When people create money, they often get a visit from the secret service.

 

[jonny5]

The unemployment rate is quite low by a variety of measures and wages are rising. I am not sure how you came to this conclusion.

Banks create money, not people. When people create money, they often get a visit from the secret service.

Unemployment rate is low because people quit looking for work. Employment is still below pre pandemic levels, and labor force participation is also down. Wages are rising because policy and inflation. Banks dont create money, or rather they only create the symbolic representation of it. Money is just a symbol for products that people trade, labor, resources, etc.

Banks, or rather the Treasury is passing out those symbols through the banks, without equivelant backing, which causes inflation. Combine that with passing it out to people not working, and you again lower the money velocity and create inflation.

 

[Slartibartfast]

Unemployment rate is low because people quit looking for work. Employment is still below pre pandemic levels, and labor force participation is also down.

You are somewhat correct. Unemployment is low because a lot of boomers retired plus our intake of immigrants was down for a few years. The main driver is retirements though and what we are seeing will be the new normal for a few years.

Wages are rising because policy and inflation. Banks dont create money, or rather they only create the symbolic representation of it. Money is just a symbol for products that people trade, labor, resources, etc.

They are rising because of the labor shortage. LOL, banks create money, thats indisputable.

Banks, or rather the Treasury is passing out those symbols through the banks, without equivelant backing, which causes inflation. Combine that with passing it out to people not working, and you again lower the money velocity and create inflation.

Money is money if people believe it is. That could be gold, coins, digits on a computer, stardust, giant round rocks, or pieces of lint, so long as people believe in its value, is not a specific good (that would be barter then), and use it as a store of value during a trade.

However, from a legal perspective, the Fed bank or US Treasury creates money.

 

[jonny5]

You are somewhat correct. Unemployment is low because a lot of boomers retired plus our intake of immigrants was down for a few years. The main driver is retirements though and what we are seeing will be the new normal for a few years.


They are rising because of the labor shortage. LOL, banks create money, thats indisputable.


Money is money if people believe it is. That could be gold, coins, digits on a computer, stardust, giant round rocks, or pieces of lint, so long as people believe in its value, is not a specific good (that would be barter then), and use it as a store of value during a trade.

However, from a legal perspective, the Fed bank or US Treasury creates money.

Wages are rising because govts are mandating they rise, because labor shortage, and because inflation. Labor force doesnt count retired boomers or illegals. And we're talking about the same thing, the creation of money whether its bills or stardust. Ultimately its only worth what someone will trade for it, so it all comes back to product. And govt is issuing far more money than there is product to support it, partly due to pandemic, and supply chain, and takers not working. Hence inflation.

So, back to the topic to control it, we need to stop handing out money to people who dont work. Thats part of the solution.

 

[rahl]

Wages are rising because govts are mandating they rise, because labor shortage, and because inflation. Labor force doesnt count retired boomers or illegals. And we're talking about the same thing, the creation of money whether its bills or stardust. Ultimately its only worth what someone will trade for it, so it all comes back to product. And govt is issuing far more money than there is product to support it, partly due to pandemic, and supply chain, and takers not working. Hence inflation.

So, back to the topic to control it, we need to stop handing out money to people who dont work. Thats part of the solution.

Who is getting money not to work? Why does this moronic right wing lie persist, after it gets repeatedly smashed to bits?

 

[Slartibartfast]

Wages are rising because govts are mandating they rise, because labor shortage, and because inflation. Labor force doesnt count retired boomers or illegals. And we're talking about the same thing, the creation of money whether its bills or stardust. Ultimately its only worth what someone will trade for it, so it all comes back to product. And govt is issuing far more money than there is product to support it, partly due to pandemic, and supply chain, and takers not working. Hence inflation.

So, back to the topic to control it, we need to stop handing out money to people who dont work. Thats part of the solution.

I already explained why inflation is rising (supply chain issues), but if you want to keep insisting on your own reality that's fine.

 

[jonny5]

I already explained why inflation is rising (supply chain issues), but if you want to keep insisting on your own reality that's fine.

Thats only one of the issues. Your reality is tunnel vision.

 

[Slartibartfast]

Thats only one of the issues. Your reality is tunnel vision.

My reality is reality.

The data that shows Boomers are to blame for the labor shortage - ABC17NEWS

By Allison Morrow, CNN Business Editor’s Note: A version of this story appeared in CNN Business’ Nightcap newsletter. To get it in your inbox, sign up for free, here. One of the more insidious myths making the rounds this year was that young people didn’t want to work because they were getting...

abc17news.com

How the supply chain caused current inflation, and why it might be here to stay

Inflation soared 6.2% in October from a year earlier, the fastest pace since 1990.

www.pbs.org

 

[jonny5]

My reality is reality.

Your reality is a fraction of reality.

 

[Slartibartfast]

Your reality is a fraction of reality.

The fraction that contributes to actual change in real circumstances, sure.