Inflation

[Up In Smoke]

Biden put Buttigieg in as transportation secretary, a job he is woefully unqualified for. Like Kommie Harris, he fit the checkmark. Add to that, the supply chain issue and Buttigieg goes on leave! MIA! Helped fire up inflation.

Inflation started with the 5.5T dollar tax cut and tariffs. The Fed tried to raise rates in 2018 to curb it, but flinched.

 

[Wally]

Inflation started with the 5.5T dollar tax cut and tariffs. The Fed tried to raise rates in 2018 to curb it, but flinched.

The suppy chain drying up didn't help.

 

[vantexan]

With no House or Senate for the first two years, he would have gotten nothing. Lame duck and no Senate his last two years he gets even less. Schumer would have pulled a McConnell and everything would have died on his desk.

Oh? He would've allowed 5 million unvetted people in illegally? And he got the funding to build the wall in his first term but after years of getting that blocked by Dems he ran out of time finishing it. And you don't know how the midterms would've turned out in his second term.

 

[vantexan]

Inflation started with the 5.5T dollar tax cut and tariffs. The Fed tried to raise rates in 2018 to curb it, but flinched.

Inflation
2017: 2.13%
2018: 2.49%
2019: 1.76%
2020: 1.23%

The Fed wanted higher inflation as they felt the 2% average was making the economy too hot.

 

[Up In Smoke]

Inflation
2017: 2.13%
2018: 2.49%
2019: 1.76%
2020: 1.23%

The Fed wanted higher inflation as they felt the 2% average was making the economy too hot.

Now add the tax cuts back in and what do you have?

 

[Darmark7]

Inflation
2017: 2.13%
2018: 2.49%
2019: 1.76%
2020: 1.23%

The Fed wanted higher inflation as they felt the 2% average was making the economy too hot.

The good ole days!

 

[Up In Smoke]

The good ole days!

If you're ok with large fiscal deficits and government assistance.

 

[vantexan]

Now add the tax cuts back in and what do you have?

That's the inflation with his tax cuts. Inflation didn't spike until after Biden both hurt the oil industry and went trillions too far with his stimulus.

 

[Up In Smoke]

That's the inflation with his tax cuts. Inflation didn't spike until after Biden both hurt the oil industry and went trillions too far with his stimulus.

The tax cuts hid inflation. Every working adult and business got a pay increase from the federal government. Companies didn't need to raise wages or prices, they received an 11% raise to their bottom line.

 

[Up In Smoke]

I believe I saw where the CBO rescored those tax cuts and it's significantly higher than the original 5.5 trillion price tag.

 

[Up In Smoke]

The suppy chain drying up didn't help.

A result of way too much money injected into the system.

 

[vantexan]

The tax cuts hid inflation. Every working adult and business got a pay increase from the federal government. Companies didn't need to raise wages or prices, they received an 11% raise to their bottom line.

That's a skewed way of looking at it. That's exactly what most people want, to keep more of what they earn. But when did prices rise? After transport costs went up. After too much stimulus was injected into the economy.

 

[IVE GOTTA PACKAGE 4U]

That's a skewed way of looking at it. That's exactly what most people want, to keep more of what they earn. But when did prices rise? After transport costs went up. After too much stimulus was injected into the economy.

They injected way too much money into the economy

 

[Up In Smoke]

That's a skewed way of looking at it. That's exactly what most people want, to keep more of what they earn. But when did prices rise? After transport costs went up. After too much stimulus was injected into the economy.

Over 40% of the US's M2 money supply was "printed" during the Trump years. First, to pay for the shortfall from the tax cuts and second for pandemic relief.

 

[vantexan]

Over 40% of the US's M2 money supply was "printed" during the Trump years. First, to pay for the shortfall from the tax cuts and second for pandemic relief.

Agreed. And Biden injected too much in spite of objections of major economists like Larry Summers who warned that putting more in would lead to inflation. And now we have a standoff over the debt ceiling because the Biden administration wants to spend way too much. You can't spend $6-$8 trillion a year without consequences. $4 trillion is too much but because of mandatory spending there's only about 15% of the budget outside of defense that can be looked at. Defense needs to be trimmed too.

 

[Up In Smoke]

Agreed. And Biden injected too much in spite of objections of major economists like Larry Summers who warned that putting more in would lead to inflation. And now we have a standoff over the debt ceiling because the Biden administration wants to spend way too much. You can't spend $6-$8 trillion a year without consequences. $4 trillion is too much but because of mandatory spending there's only about 15% of the budget outside of defense that can be looked at. Defense needs to be trimmed too.

Hindsight is 20/20, but both sides of the isle pander to their base. If we leave the tax rate alone and continue to raise rates in 2018/19, there's plenty of dry powder to combat the pandemic. Revenues would have been sufficient to combat loses from payroll reductions. There was no oversight with PPP, unemployment, SBA, renter assistance and dozens of other programs. Hundreds of billions of dollars were injected to individuals and businesses that were unaffected by the pandemic.

 

[vantexan]

Hindsight is 20/20, but both sides of the isle pander to their base. If we leave the tax rate alone and continue to raise rates in 2018/19, there's plenty of dry powder to combat the pandemic. Revenues would have been sufficient to combat loses from payroll reductions. There was no oversight with PPP, unemployment, SBA, renter assistance and dozens of other programs. Hundreds of billions of dollars were injected to individuals and businesses that were unaffected by the pandemic.

Summers is a Democrat, and he predicted it before it happened. Economics 101. Can try to share the blame if you want but most of what has happened in the last 2 years and 4 months falls squarely on the Biden Administration.

 

[Up In Smoke]

Summers is a Democrat, and he predicted it before it happened. Economics 101. Can try to share the blame if you want but most of what has happened in the last 2 years and 4 months falls squarely on the Biden Administration.

Reuters, Moody's and The Tax Policy Center all warned how the Tax and Jobs act would spark inflation and cause the Fed to raise rates in order to head it off. Injecting money into the economy that's on a credit card is bad policy. The 80's taught us that, but we are addicted to debt and deficit.

 

[vantexan]

Reuters, Moody's and The Tax Policy Center all warned how the Tax and Jobs act would spark inflation and cause the Fed to raise rates in order to head it off. Injecting money into the economy that's on a credit card is bad policy. The 80's taught us that, but we are addicted to debt and deficit.

And QE started in 2008 but we didn't see a spike in inflation until 2021. You're trying to put this on Trump but that dog don't hunt.

 

[Up In Smoke]

And QE started in 2008 but we didn't see a spike in inflation until 2021. You're trying to put this on Trump but that dog don't hunt.

We didn't see inflation in 2008-12 because of high unemployment numbers. Demand was suppressed because of flat wage growth, one of the greatest drivers of inflation. Economist agree that inflation is a lagging measure which takes 12 to 18 months after an economic event takes place. The current inflation cycle began in the spring of 2021, meaning the economic event that spurred inflation occurred in late 19 or early 20.