Republicans Are Bad for the Economy. Here’s Why.

[adrina]

A Trumper making fun of a verbal gaffe? Really. Okey dokey.

 

[Lazaran]

So weird that none of the fascist republicans have challenged the factual accuracy of the historical record in the OP.

We know why.

*nods*

 

[adrina]

So weird that none of the fascist republicans have challenged the factual accuracy of the historical record in the OP.

We know why.

*nods*

They can't. And they know it.

 

[adrina]

Drama king blah blah. I'm sure if you post another image it will raise your street cred.

 

[schism666]

Have you seen the price of eggs lately?

Or tried to buy baby formula?

$3 a dozen and walmart has plenty of formula.

derp

 

[Chernosoth]

The global industrial economy is a pyramid scheme that has lasted for three centuries, long enough to create belief it will last forever. Both parties are still in denial of its inevitable end, with fantasies of abiotic oil, alternative energy, and anything but energy conservation. The Republicans are slightly ahead in letting people walk away from the scheme, deglobalize, downscale, or do whatever they can to adapt and prepare.

 

[DeluxAuto]

Op-ed: Democrats are better for our country and economy

https://www.cnbc.com/2022/10/31/op-ed-democrats-are-better-for-our-country-and-economy.html

 

[coati]

The global industrial economy is a pyramid scheme that has lasted for three centuries, long enough to create belief it will last forever. Both parties are still in denial of its inevitable end, with fantasies of abiotic oil, alternative energy, and anything but energy conservation. The Republicans are slightly ahead in letting people walk away from the scheme, deglobalize, downscale, or do whatever they can to adapt and prepare.

Yes, the current economic model is a pyramid scheme, but no, the Republican Party is not ahead on downscaling that scheme. In fact, the GOP is way ahead in Orwellian style corporate control of the people.

Dropping out has nothing to do with the platforms of either Democrats or Republicans. Instead, it is an act of survival by people who are getting priced out of the market. Black markets are a natural consequence of mainstream greed and gluttony.

 

[FelHarper]

So weird that none of the fascist republicans have challenged the factual accuracy of the historical record in the OP.

We know why.

*nods*

I don’t identify as a “fascist”, but I’ll bite. The lack of response probably has more to do with how dry and boring the topic of economics is to most people than that The Daily Beast is particularly insightful in its commentary. You might as well cite Alex Jones or the The View as those hacks. This argument is one big post hoc ergo propter hoc fallacy.

The economy is subject to a repeating pattern of expansion and contraction (or boom and bust) known as the business cycle. The average length of one of these cycles is about 4.5 years. There are many theories about why business cycles occur, but there are a number of observations that you can make about them.

1. The “bust” part of the business cycle usually occurs after the central bank (the Federal Reserve or “Fed” in the US) raises interest rates via the federal funds rate. Usually this is in response to rising inflation such as we have been experiencing. The federal funds rate is now the highest it has been since 2007, though still low when viewed over longer timeframes.
2. Conversely, a low federal funds rate seems to goose the economy into greater activity. That sounds great until you factor in that this leads to banks and investors over-leveraging, i.e. borrowing money at these very low rates and investing it, to the point that the borrowed funds dwarfs the actual assets that the firm possesses.
3. A “recovery”, while not automatic, is generally going to happen unless impeded in some way. After a bust, capital gets freed up that was previously tied up in bad investments, which combined with the Fed slashing interest rates, leads to another boom cycle.
4. A bust can be delayed somewhat by keeping interest rates low or slashing them further. The 2020 recession was very much overdue, since the previous recession occurred in 2012, but extremely low interest rates were maintained for a prolonged period. 2020 was somewhat unique in that it was Covid, rather than rising interest rates, which triggered the recession.
5. Some will make much ado about the effect of regulations, citing de-regulation in banking, for example, as the proximate cause of the 2008 recession. That is only slightly true. Such factors can steer the over leveraging and malinvestment into certain sectors, but the business cycle very obviously reacts to interest rate changes.

Now, neither one of the two parties is particularly good about managing the business cycle (putting aside that the Fed is supposed to be a non-governmental organization). A responsible policy would be to keep interest rates at a relatively higher rate and only make very small changes. This would prevent over-leveraging, provide stability, and ensure that the cycles that will inevitably occur will be much less severe.

But to do that would mean forgoing the big job and GDP growth numbers in the wake of a recession that presidents love to brag about. So, instead of a long-term strategy of steady growth, we get our lives being up-ended every few years, 401Ks decimated, homes foreclosed, businesses shuttered. Meanwhile the people responsible for the mess have no skin in the game, and in fact have an uncanny ability to consistently outguess the market and make money on the way down and back up.

There is a reason that, after each recession in the last 30 years, the federal funds rate is pushed to a new low. They keep trying to eke more growth out of an economy that already has far too much debt (too much to go into here) and is only getting more fragile by the year.

 

[Pad_Foot]

Tax Wealth just like they tax property!!

1% .. 2% starting at ??? 5 million ???

One reason Trump leans into “Pokahontus”
Elizabeth Warren is a genius. Trump?? A kindergartner unschooled in proper adult behavior or able to make a coherent argument

Person Woman Man Camera TV
… or did he say what he could see at that moment ?? Now?? It’s on his teleprompter