Do you think Congress approving $6 Trillion in fiscal stimulus had anything to do with it? They tried to spend another $3 Trillion but thankfully for the economy, Joe Manchin wouldn't let them.
COVID for sure has a major blame for this. From the lockdowns, the million+ dead, millions more disabled, people quitting their jobs and not returning to the labor force, to China completely locking down its biggest cities in 2022, everything was lined up for the **** show that is today. We were due a big downturn either way, but it was postponed two years.
Low rates lead to more borrowing so more money available. If I remember, the anemic inflation (and still high unemployment) drove them to keep everything near 0%.
I need someone to explain how . . it is NOT GREED but Inflation Cause I think it is straight GREED Most times when I ask people get real vague, dismissive or jump into obscure theory Rocket River
Definitely a part of it. One thing people also forget is a lot of us were saying that under Trump we needed to raise interest rates, raise taxes, spend less and let the market cool down so that we wouldn't trigger inflation during a major crisis (like say, a global pandemic). Instead, Trump ignored all conventional political and economic wisdom and spent more, cut taxes, didn't raise interest rates and when we needed to spend money, we ran the risk of inflation. Not too dissimilar to what Bush did in the 2000s. The good news is the economy will collapse under Biden, and recover under Republicans and the GOP will get the credit and repeat the process. Companies will continue to operate focusing on a quarterly basis and stock dividends instead of planning for the future, and rich people will buy assets from the poor when they're artificially low. We'll probably also cut consumer protections of course and increase things like predatory lending while the poorest/reddest states don't expand health insurance and cut state funding to colleges. To get an education or stay healthy you'll fall into debt and be desperate, so you'll sell your assets and work for less than you're owed. Then people will tell you you're lazy for being poor and the cycle will repeat until people figure it out.
It's economics. Oil prices are fundamental economics. Supply and demand. Just like when they were really low not too long ago Everything else follows oil prices. EVERYTHING You live in the energy capital of the world. You should know this
I can’t imagine how this inflation is affecting retirees. Imagine losing your pants in your 401k because it has retracted 20% (although we are in 2019 levels) and then with the money that you still have saved it’s worth 10% less each year. I know my younger coworkers are getting shafted with major rent increases they cannot afford.
[Premium Post] When you ask that question, any financial expert would surmise, just from the question, that it will be a big challenge for you to understand their response. But here's the response if you do want to spend time studying up on on things: Inflation is too many dollars chasing too few goods. Supply and demand causes the price of the goods to rise. The Fed printed trillions of dollars over the past 10+ years and Congress passed $6 trillion of fiscal stimulus over the past 2+ years. The dollars you hold in your bank account decrease in value because A) There are more dollars in circulation; and B) with these price hikes, your purchasing power has declined Commodities, one of which being oil, are priced on a global marketplace using quoted prices. These prices are denominated in US dollars. As the economy overheated, demand for oil went up. Because of the ESG movement, additional supply of oil & gas has been discouraged for years. As a result, a supply-demand imbalance formed, and oil & gas prices skyrocketed. When energy prices rise, virtually all other prices rise because energy is an input into the manufacturing industry and transportation industry, among others (chemicals, plastics, mining, tourism, etc). Businesses further raise prices to try to make a profit after their costs went up. This leads to a vicious circle of costs going up, profits down, prices to the consumer up. Inflation is almost always bad for corporate profits. There might be a short term pop, but it's quickly reversed. Consumers have less discretionary money in their pockets to spend when gas/food prices are high and when interest rates go up to fight inflation, usually demand slows down. Inflation absolutely decimates the lower class. Their wages don't rise yet their costs (auto, gas, food) spike. These are the people that the Democrats are hurting the most. So you can see that inflation is the result of many market forces coming together at once. In this case, it's the specific result of Democrats' out of control spending and Democrats' stupid energy policy. GOOD DAY
Stop. You and I both know that the American Rescue Plan was almost $2 trillion but a lot of it went to shore up unemployment funds or to local and state governments who were facing cataclysmic shortfalls but cannot run a deficit like the federal government can. The stimulus checks were less than 25% of the whole package. Did they contribute to inflation? Most likely. But the driving factor? Absolutely not.
Shhh,,,don't hurt the narrative, Housing and crypto are probably about to pop too. Most of my older friends just got out of dealing with 2008 and now can't accumulate wealth. My younger friends can't find work and the ones that do spend most of their money on rent or healthcare. Expanding on that, most women I know have a sugar daddy to stay afloat and most men can't afford to date or provide. We're already at low fertility rates and social security needs young people working to fund it. We're going to implode in my lifetime. And if we implode we take the global economy with it because every economy is tied to the dollar. We're the only country who can refinance our debt the way we do because of our sheer monopoly on banking. People here b****, but they have zero clue how the rest of the world lives. Be grateful you can at least eat or import food depending on where you live. A lot of countries are not going to be able to:
At least Joe is able to hang his hat on the post covid job creation. He was all over that and he sure isnt shy bragging about it.
