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Economic Inflation....the starting point of a new great depression?

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https://www.dlacalle.com/en/why-interventionist-governments-love-inflation/

This guys gives a wonderful explanation for the reason prices are going up on everything. It's very educational and enlightened me on why governments love inflation....here's a hint it's a backdoor way to increase taxes without passing any tax increases. More money for our crooked politicians to hand out to their family and friends.
 
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BigSexyCat said:
https://www.dlacalle.com/en/why-interventionist-governments-love-inflation/

This guys gives a wonderful explanation for the reason prices are going up on everything. It's very educational and enlightened me on why governments love inflation....here's a hint it's a backdoor way to increase taxes without passing any tax increases. More money for our crooked politicians to hand out to their family and friends.
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From what I recall, Milton Friedman was the first to recognize inflation as a shadow tax on the people. I don't recall Adam Smith ever addressing it which makes sense because in his time inflation probably wasn't much of a thing, if a thing at all.

However I disagree with the notion it's some nefarious scheme to increase taxes. I think that's an incorrect interpretation of what Friedman talked about.

Why? Because inflation effects the purchasing power of the government too, especially in a global economy. An easy example is the price of gas. On a given day, the federal government pays a fortune in gasoline purchases. Massive fuel cost increases due to inflation hurt them more than anyone. That's just one example of many.

It's absolutely at least partly nefarious, just not in that regard. Mostly it's just gross incompetence
 
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We had a meeting yesterday on our inbound trucks backing up. We used to get 98% of what we ordered show up on that truck. We are now getting 83%. We get 100+ trucks per day. If labor and shipping doesn't get fixed soon you are going to see another mass resignation of the workers that are still gutting this out.
 
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Don’t worry, our dear leader has a plan to fix it. Keep as many workers as possible home sitting on their ass and fire 1/3 or more of those still working. Oh, and make us dependent on foreign energy.

It’s called Equity. We’ll all be equally miserable, except for the “elites”, of course.
 
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Wildcats1st said:
" By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. "

-John Maynard Keynes
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Good thing Keynes was full of shit. He’s be proud of what the commie Biden administration is doing.
 
BigSexyCat said:
Hope I'm wrong but with the impending $15 minimum wage hike, the government nearly destroying small businesses with the lockdowns, the dollar drifting toward losing it's standing as the worlds top currency, etc. It all setups a scenario of impending economic doom.

https://www.thestreet.com/investing/dow-futures-tech-stocks-slide-as-inflation-signals-mount

https://www.newsweek.com/will-us-dollar-lose-its-place-worlds-no-1-reserve-currency-1567224
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Well... with a Democrat in office... yeah, you could be right.

Having said that, the Dems are likely to get slaughtered in Nov so that will stop any further stupidity... and there's no chance mush brain wins in '24 so we'll have to elect another Repub to clean up the mess as usual.
 
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I just hope we make it to November before everything collapses. Best case for the destructive actions of these radicals is incompetence. More likely it's all by design.

A lot of dumbasses in this country.
 
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WayneDougan said:
Good thing Keynes was full of shit. He’s be proud of what the commie Biden administration is doing.
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I think history has shown Keynes to have been right on. I don’t think you understand Keynes if you think the commies like him. Hell all presidents since the Great Depression adopted Keynesian principles and we wouldn’t have metrics like unemployment or even rate of inflation without Keynes.
 
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Wildcats1st said:
I think history has shown Keynes to have been right on. I don’t think you understand Keynes if you think the commies like him. Hell all presidents since the Great Depression adopted Keynesian principles and we wouldn’t have metrics like unemployment or even rate of inflation without Keynes.
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No.

Friedman FTW.
 
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P19978 said:
No.

Friedman FTW.
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Friedman was closer to keyenes than dissimilar. Not to mention keyenes gave Friedman a blueprint to start from. Of course he took that blueprint and developed a different view of inflationary forces as well as the abolition of the gold standard but on balance it became a move that would allow an injection of steroids into Keynesian policies. Abolition of the gold standard gave rise to massive government debts worldwide.
 
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Wildcats1st said:
Friedman was closer to keyenes than dissimilar. Not to mention keyenes gave Friedman a blueprint to start from. Of course he took that blueprint and developed a different view of inflationary forces as well as the abolition of the gold standard but on balance it became a move that would allow an injection of steroids into Keynesian policies. Abolition of the gold standard gave rise to massive government debts worldwide.
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Friedman was a freemarkets believer: Keynes was the opposite. A HUGE difference.
 
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P19978 said:
Friedman was a freemarkets believer: Keynes was the opposite. A HUGE difference.
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It’s not that black and white. He was a big supporter of captialism and free markets but believed that in times of downturn the govt bore responsibility to use its fiscal and monetary policy to repair economies. That’s exactly how things have been since the FDR admin. Every administration has been a believer in spending. Keyenes believed taxes needed to be lowered in concert with higher spending in the short run to spur economic growth. Supply side and demand side económica both have benefits to free market economies. You can’t have all of one or the other. I think you need to do some research about keyenes instead assuming he wasn’t a free market guy.

friedman was for the integration of markets. He wanted a total open and free global economy wo any tariffs and was a supply sider. Both were a supporter of free markets but keyenes theories are in practice now and have been going on 100 years. Even Trump the supply sider knew the economy would tank in 2020 wo govt intervention.

this article I used to share with students gives a more accurate perspective on keyenes than your assertion that he was opposed to free markets.

I’ll add real quick you are talking about 2 free market guys who have different ideas on how to protect the free market. For you to say keyenes was opposed or the opposite or a free market guy shows a total lack of understanding on the subject.

www.forbes.com

Keynes Was Really A Conservative

In ''General Theory'' the economist outlines his belief of the government's role in a recession.
www.forbes.com www.forbes.com
 
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Wildcats1st said:
It’s not that black and white. He was a big supporter of captialism and free markets but believed that in times of downturn the govt bore responsibility to use its fiscal and monetary policy to repair economies. That’s exactly how things have been since the FDR admin. Every administration has been a believer in spending. Keyenes believed taxes needed to be lowered in concert with higher spending in the short run to spur economic growth. Supply side and demand side económica both have benefits to free market economies. You can’t have all of one or the other. I think you need to do some research about keyenes instead assuming he wasn’t a free market guy.

friedman was for the integration of markets. He wanted a total open and free global economy wo any tariffs and was a supply sider. Both were a supporter of free markets but keyenes theories are in practice now and have been going on 100 years. Even Trump the supply sider knew the economy would tank in 2020 wo govt intervention.

this article I used to share with students gives a more accurate perspective on keyenes than your assertion that he was opposed to free markets.

I’ll add real quick you are talking about 2 free market guys who have different ideas on how to protect the free market. For you to say keyenes was opposed or the opposite or a free market guy shows a total lack of understanding on the subject.

www.forbes.com

Keynes Was Really A Conservative

In ''General Theory'' the economist outlines his belief of the government's role in a recession.
www.forbes.com www.forbes.com
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You couldn't be more wrong... but feel free to keep trying. I'm not letting you "Mark Twain" me.
 
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P19978 said:
You couldn't be more wrong... but feel free to keep trying. I'm not letting you "Mark Twain" me.
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Tell me which country has a free market economy? The one you’re sitting is has the economy it does because of keyenes contribution. There is no true free market. Stop with the 1 sentence comments and debate or go away
 
BigSexyCat said:
Federal deficit hits 15% of GDP for the first time since WWII.

https://fred.stlouisfed.org/series/FYFSGDA188S
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And given that we have fought WWIII over three presidencies and 21 years, that figure should not be shocking.

As to the OP, inflation is seldom an indication of a collapse of economic activity, and is instead a spur to economic activity.

Tell me my money will fall in value by 5 percent next year, and I spend it this year investing in land and capital projects.

Tell me that my cattle, iron and oil will fetch a high price in 2025, I endeavor to produce more cattle, iron and oil.

But tell me the opposite: that my money will increase in value by 5 percent in the next year, and money becomes my investment vehicle, and I likely choose not to spend it on land and capital projects. Tell me my commodities, land and home will fetch fewer dollars in 2025, and I have less spur to produce more commodities, or even to continue to possess them, as opposed to converting them to dollars that are gaining in value.

Persistent inflation during the 20th Century in the United Stares helped spur a far greater growth in GDP than did the modest deflation of the 19th Century.

Obviously, the aged, retired and disabled, if reliant on a fixed income w/o inflation adjustment, suffer, while those capable of inflated earnings (to pay off fixed, pre-inflation debts) benefit disproportionately from pump-priming.
 
P19978 said:
and there's no chance mush brain wins in '24 so we'll have to elect another Repub to clean up the mess as usual.
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Wow!

The SEVEN TRILLION printed by Trump and Congress prior to Biden brought this inflation about.

The ancient proverb that “too many dollars chasing too few goods” produces inflation was baked into the pie in overdrive when relief checks were being mailed in multiple, trillion dollar quantities to individuals, businesses, states, counties and cities two years ago.

Complain about inflation, printing presses, John M. Kanye’s, and liberal financial policies all you want, but recognize that Trump was the most successful, liberal, peace-time President at increasing the money supply.
 
Wildcats1st said:
Tell me which country has a free market economy? The one you’re sitting is has the economy it does because of keyenes contribution. There is no true free market. Stop with the 1 sentence comments and debate or go away
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We have become so addicted to pump-priming and Kaynesian economic policy that the trillions printed in ‘20 and ‘21 hardly drew a whimper from those calling themselves conservatives, with a rare exception in Rand Paul.

I represent three small cities sitting on hundreds of thousands of dollars freshly printed and distributed in ‘20 and ‘21, and they are struggling to find legal methods of spending the money, as the initial constraints are pretty tight. Kentucky had a special session in ‘21, to figure out how to distribute and spend billions of dollars of freshly printed money. I’m guessing half of it is banked.
 
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P19978 said:
I'm not letting you "Mark Twain" me.
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Perhaps he can “Forbes” you, and by use of that notably socialistic publication bring you around!

And failing that, quote such fellow-traveling organs as the National Review, the Heritage Foundation and the National Chamber of Commerce.

And failing all that, he might “Samuel Clemens” you!!
 
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Somebody should have told Friedman he was Keynesian.



Keynes didn't care about inflation because "in the long run we're all dead". He further believed that aggregate demand could be insufficient to bring about full employment Real GDP - thus his incistince on the use of Fiscal Policy.

Friedman opposed activist fiscal and monetary policy. He pretty much stuck to the quantity theory of money, velocity of money, crowding out, etc
 
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Useless politicians

277580336_1535203116862068_5078572496393966106_n.jpg
 
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The-Hack said:
We have become so addicted to pump-priming and Kaynesian economic policy that the trillions printed in ‘20 and ‘21 hardly drew a whimper from those calling themselves conservatives, with a rare exception in Rand Paul.

I represent three small cities sitting on hundreds of thousands of dollars freshly printed and distributed in ‘20 and ‘21, and they are struggling to find legal methods of spending the money, as the initial constraints are pretty tight. Kentucky had a special session in ‘21, to figure out how to distribute and spend billions of dollars of freshly printed money. I’m guessing half of it is banked.
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I agree with this. My biggest problem with Trump was his spending and I don't know why pubs didn't push harder for him to cut spending... well, actually I do know why.... They aren't conservatives and just want to get reelected... LOL. But the amount spent in the last 2 years dwarfs Trumps 4 years, and he has also wrecked the opinion of our military strength.

One thing people don't seem to realize is that our military was the reason our Dollar was so strong through a lot of these economic situations that Keynes followers love to point out. You take away the strongest military ever known to man and our economy fails during Breton Woods and especially during Breton Woods 2. Those were the types of things that normally wreck a currency and of course the economy. But because of our military the other countries just kinda let us slide.... Like if you called Mike Tyson for walking on the bball court... and he gets in your face and says "I didn't walk"... so you just say "yea, lets play ball".
 
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Not to mention another reason, China lockdowns. Why? Because their vaccines are inferior and not enough Chinese people are vaccinated. Goods there will not get manufactured then shipped overseas to places like Home Depot and Walmart.
 
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hmt5000 said:
I agree with this. My biggest problem with Trump was his spending and I don't know why pubs didn't push harder for him to cut spending... well, actually I do know why.... They aren't conservatives and just want to get reelected... LOL. But the amount spent in the last 2 years dwarfs Trumps 4 years, and he has also wrecked the opinion of our military strength.

One thing people don't seem to realize is that our military was the reason our Dollar was so strong through a lot of these economic situations that Keynes followers love to point out. You take away the strongest military ever known to man and our economy fails during Breton Woods and especially during Breton Woods 2. Those were the types of things that normally wreck a currency and of course the economy. But because of our military the other countries just kinda let us slide.... Like if you called Mike Tyson for walking on the bball court... and he gets in your face and says "I didn't walk"... so you just say "yea, lets play ball".
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One of the biggest reasons why the Democrats didn't say much is because they were happy with the results. Trump has been a Democrat waaaaaaaaaaaaaaay longer than he's been a Republican.....and he's actually still quite Democratic in many of his positions/policies.
 
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jameslee32 said:
Not to mention another reason, China lockdowns. Why? Because their vaccines are inferior and not enough Chinese people are vaccinated. Goods there will not get manufactured then shipped overseas to places like Home Depot and Walmart.
View embedded media
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Lockdown was an incredibly stupid idea. The "experts" maybe get a pass the first 2-4 weeks, but by then it was very clear nothing we did would stop transmission. So every push for restrictions beyond that small time frame should absolutely force accountability on all the decision makers. Won't happen, but should.

Lockdown started it all. Followed by insane endless free money over the course of two presidents. Now the inevitable lockdown repercussions are becoming more obvious while at the same time free money makes it virtually impossible to staff.

It's a sh1t show and was all foreseeable and preventable
 
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bigblueinsanity said:
Lockdown was an incredibly stupid idea. The "experts" maybe get a pass the first 2-4 weeks, but by then it was very clear nothing we did would stop transmission. So every push for restrictions beyond that small time frame should absolutely force accountability on all the decision makers. Won't happen, but should.

Lockdown started it all. Followed by insane endless free money over the course of two presidents. Now the inevitable lockdown repercussions are becoming more obvious while at the same time free money makes it virtually impossible to staff.

It's a sh1t show and was all foreseeable and preventable
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I agree that so much of the handling of the pandemic was bungled.......nothing was every aimed at "stopping" anything.
 
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