Key Inflation Metric Surges To 29-Year High…
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Rightguide
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Obama has publicly claimed the Biden presidency is in fact his third term.
CornusKousa
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Democrats cheer for all the progress!!!
They're going to get Venezuela sooner than they though comrades!!
Inflation is high because demand is outstripping supply, and it is mostly related to Covid. Even without the stimulous payments (which unlike the cold hearted, nasty GOP thinks, actually helped people get through this crisis, kept food on the table).
The big problem is the global supply chain got screwed up (yay, corporate greed) and things are in short supply. The lumber industry, afraid of Covid suppressing demand, stopped producing lumber (that and covid causing problems with labor),meanwhile thanks to Covid people spent money on their houses like crazy, the cost of lumber has tripled in a year, literally.
Oil and gas prices are going up because they were suppressed do to lack of demand during covid. It is not surprising they have gone up, in the middle of covid oil was trading at negative prices (they literally paid you to take it away), when you have that deep a crash in prices, of course you will see inflation when a pandemic ends and the world opens up.
Commodity prices are up because again supply issues, the production of food products was hampered by covid and not to mention global demand because in some places harvests were poor.
This isn't because of debt, it isn't crowding out, it is because you had an economy that was in a deep recession, where people were basically not travelling, not commuting to work, and now they are.
Course for all the talk about biden and debt, where were all you MAGAts when Trump put a 2 trillion dollar crater in spending with his glorious tax cut and ran 1trillion+ deficits with a 'booming' economy?
The big problem is the global supply chain got screwed up (yay, corporate greed) and things are in short supply. The lumber industry, afraid of Covid suppressing demand, stopped producing lumber (that and covid causing problems with labor),meanwhile thanks to Covid people spent money on their houses like crazy, the cost of lumber has tripled in a year, literally.
Oil and gas prices are going up because they were suppressed do to lack of demand during covid. It is not surprising they have gone up, in the middle of covid oil was trading at negative prices (they literally paid you to take it away), when you have that deep a crash in prices, of course you will see inflation when a pandemic ends and the world opens up.
Commodity prices are up because again supply issues, the production of food products was hampered by covid and not to mention global demand because in some places harvests were poor.
This isn't because of debt, it isn't crowding out, it is because you had an economy that was in a deep recession, where people were basically not travelling, not commuting to work, and now they are.
Course for all the talk about biden and debt, where were all you MAGAts when Trump put a 2 trillion dollar crater in spending with his glorious tax cut and ran 1trillion+ deficits with a 'booming' economy?
Rightguide
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No, inflation occurs when the government injects huge amounts of new dollars into the economy that aren't created by the production of goods or services.
It's true that interrupting the logistical delivery of goods and services, or constraining the supply, can result in higher prices against existing demand. But when prices go up across the board, save real shortages in supply, or a total shut down of transportation and production, you can bet on the existence of monetary inflation.
Prices and inflation are two different things. High prices across the board are evidence of inflation.
icanhelp1
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Lefty loons will always play the narrative that is based on ideology rather than facts. Excessive infusion of cash into an already cash heavy economy gives people more money to spend putting artificially high demands on products and services causing shortages which in turn causes inflation.
Biden is hell bent on destroying a recovery that needs nothing more than politicians getting out of the way.
Biden is committing national suicide.
There are economists that believe personal savings have accumulated to the tune of 1 trillion dollars, I believe highest ever for individual savings accounts.
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Rightguide
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It's a simple truth when you "inflate," with a printing press, the amount of dollars in circulation which are then chasing the same amount of goods and services you get higher prices. Econ 101, a subject unvisited by many leftists. Those who have reject the fact that economic law is immutable. They learn this through failure however but never accept the inexorability of economic law. Here's an example of what most Democrat economic plans look like:
https://i.imgur.com/lVCsmE7.png
The only thing wrong is explain to me this. First of all, the idea of 'printing more money' is idiotic, they don't print more dollars . When currencies were hard ie backed by gold, printing more money created inflation because each dollar was backed by less and less gold, but that died a long time ago. The value of a currency today is based on how it trades on currency markets, and the dollar is still strong against other currencies, so it isn't because the dollar is worth less, not in that sense.
Inflation is generally caused when demand outstrips supply, when as they used to say, too many dollars is chasing too few goods. I am not denying stimulous programs have increased demand, but there is a concept in economics called pent up demand, and let's look how that effects the economy.
-People couldn't go anywhere, they weren't going on vacations, they were staying home and demand for stuff around the home soared when manufacturing has been paralyzed because of covid, as well as shipping. Have you walked into a local store recently? Supply chain is crazy, and yes, that includes food as well. Arguing "nothing could cause inflation on this scale except too many dollars' is idiotic in the middle of a global pandemic that has killed the global supply chain. The auto makers, tv makers, computer makers can't get the chips and such they need and as a result have had to idle plants and lay people off, and the price of new cars and used cars is soaring because of it
Lumber has gone up 330% in the past year, and much of that happened under Trump. Why? Lumber supplies are limited, lumber industry cut back production.
-Anything to do with the home, things around the house, same problem.
-With food, shipping has been a problem and farms are having trouble with labor, and it has cut down supplies.
Until the supply chain catches up, which thanks to lean production is likely to be a while, you will see inflation. Same thing happened after WWI and WWII, we had massive inflation because the war time economy shifted production to war goods, rationed consumer goods, and post war there was an inflationary cycle because people had money but it took years for production to catch up.
One of the biggest villains is lean production. Thanks to efficiency experts, companies have very little inventory, and their suppliers are 10,000 miles away. In Japan Toyota is not having the problems the US makers are, because their suppliers are in Japan close by and the supply chain doesn't depend on cargo ships; in the US the warehouses are empty and the supply chain is creaking.
Trying to blame the stimulous checks is idiotic.Inflation could be happening for another reason, the 'fron't line workers' who everyone said were so important are demanding higher wages, not the minimum wage they had been getting, and that could be factoring into this, too.
Inflation is generally caused when demand outstrips supply, when as they used to say, too many dollars is chasing too few goods. I am not denying stimulous programs have increased demand, but there is a concept in economics called pent up demand, and let's look how that effects the economy.
-People couldn't go anywhere, they weren't going on vacations, they were staying home and demand for stuff around the home soared when manufacturing has been paralyzed because of covid, as well as shipping. Have you walked into a local store recently? Supply chain is crazy, and yes, that includes food as well. Arguing "nothing could cause inflation on this scale except too many dollars' is idiotic in the middle of a global pandemic that has killed the global supply chain. The auto makers, tv makers, computer makers can't get the chips and such they need and as a result have had to idle plants and lay people off, and the price of new cars and used cars is soaring because of it
Lumber has gone up 330% in the past year, and much of that happened under Trump. Why? Lumber supplies are limited, lumber industry cut back production.
-Anything to do with the home, things around the house, same problem.
-With food, shipping has been a problem and farms are having trouble with labor, and it has cut down supplies.
Until the supply chain catches up, which thanks to lean production is likely to be a while, you will see inflation. Same thing happened after WWI and WWII, we had massive inflation because the war time economy shifted production to war goods, rationed consumer goods, and post war there was an inflationary cycle because people had money but it took years for production to catch up.
One of the biggest villains is lean production. Thanks to efficiency experts, companies have very little inventory, and their suppliers are 10,000 miles away. In Japan Toyota is not having the problems the US makers are, because their suppliers are in Japan close by and the supply chain doesn't depend on cargo ships; in the US the warehouses are empty and the supply chain is creaking.
Trying to blame the stimulous checks is idiotic.Inflation could be happening for another reason, the 'fron't line workers' who everyone said were so important are demanding higher wages, not the minimum wage they had been getting, and that could be factoring into this, too.
Rightguide
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You think so? What the fuck is this:
Currency Print Orders
2021 Federal Reserve Note Print Order
https://www.federalreserve.gov/paymentsystems/coin_currency_orders.htm
STFU! FREAK!
My what an intelligent response, boy you must really have gotten joy in writing that, I hope so, I am sure you don't have much to find joy of in life, to quote Dean Wormer in "Animal house", "Son, going through life fat, stupid and drunk is no way to live".
Take a look at M1 circulation and you tell me,cash is a dying dinosaur, that is my point, dollar bills coming off the presses is a 1900's concept. The point being that paper currency doesn't matter. You may argue it doesn't matter, but it does.When you are relying on a backed curency, printing more dollars makes each one worth less, which means you need more of them to buy something. Currency is valued on what it can buy...and in the past what you wrote works.
But a currency these days is complicated. Currencies are global, and the value of a currency is based, not on gold backing it, but on how it trades against foreign currencies. If inflation was caused by "printing too much money" as you claim, the dollar should be at all time lows against other currencies..and it isn't, take a look at the exchange rate. 1 dollar right now is 1.22 Euros, which means it buys a lot in Europe. At one point, 1 dollar was like .75 Euros.
Yes, devaluing a currency can produce inflation,like Germany in the 1920s. However, inflation is also caused when you have suppressed demand that explodes and a demand chain that can't adjust to it, and it is affecting everything. Commodity prices are soaring because demand is soaring globally (china is heating up again, as is the US), and commodities are traded globally. It is so bad that they literally at one point had glass shortages, everything is in short supply.
The stimulous of course increased demand, but so does the fact the US is coming out of a massive slowdown thanks to covid, restaurants are ordering supplies, hotels, you name it. Macroeconomically what you have is soaring demand (like a genie coming from a bottle) and restricted supply.
There is also another problem with your thesis, and it is a big one. Biden has only been in office for 4 months, and economies move slowly when it comes to government action and the economy. Given it took time to pass the stimulous measures and get it in people's hands, this kind of thing doesn't happen in a couple of months. Even with price shocks (like the oil embargo in 73) take time to work their way through the system. Like I said, the ground work for this is pretty obvious, the loss of supply chain because of shipping problems and supply problems , especially with lean production and small inventory models and a world where demand is soaring as it recovers from Covid, especially with China having recovered quickly. Hate to tell you but china buys commodities, too.
And oh, yeah, with lumber, Trump put a large tariff on Canadian products that made them a lot mor expensive, a large percent of lumber used in the US comes from there.
phrodeau
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Rightguide
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You didn't answer my question.
icanhelp1
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If there is a definitive labor shortage while at the same time massive pent up demand how does infusing more liquidity into an already cash happy economy make any sense? Get people back to work first then adjust windage and elevation.
Actually there isn't a labor shortage,if you look at the jobs where they face shortages the employers are refusing to raise salaries and people don't want to work jobs like that. You know who is having a really hard time? Restaurants and hotels and other 'front line workers'.....the same people that we lauded during covid, who were so screwed by it, and employers are refusing to raise salaries. The numbers don't all add up and quite frankly after hearing conservative bullshit for years, that wages aren't bad or stagnant, them crowing up "low unemployment' but wages were underwater, I don't believe it any more.
One of the problems the republicans (who are focused only on the top .5%) duck is that wages for most people in this country didn't grow, even with the supposed "great" economy before covid. Wages were going up at 2-2.5% per year which was less than inflation, while those with stock based compensation saw their numbers jumping 20% a year or more. Part of what Biden is trying to do is work on income inequality which is a real problem in this country, and that is more long term, we have shit infrastructure that is going to soon bite us in the ass.
By the way, I also am not arguing that with stimulous that we need to look at the real numbers out there, the inflation numbers if this is caused by the screwed up supply chain may be a red herring. I would love to see real data on open jobs and what they are paying. Normally when there is labor shortages employers raise salaries, but because they have so loved the past almost 20 years where wages for most people are stagnant or fell and they could get to pay what they wanted. unfortunately all I see is republicans talking about how Joe Smith with his lumber yard can't get people but they don't mention what they are paying. They interviewed one guy locally who owns a string of franchise restaurants and he was complaining, and it turned out when they investigated he was actually paying less than what he did during height of covid, he basically had returned wages to where they were in 2019 then whined (meanwhile profits at his stores were really, really high).
I would love to see real data that shows open jobs and then what they are paying compared to what they were paying for the same job in 2019. Would bet you would find that where there are big job openings the wages they are offering hasn't gone up much if at all.
One of the problems the republicans (who are focused only on the top .5%) duck is that wages for most people in this country didn't grow, even with the supposed "great" economy before covid. Wages were going up at 2-2.5% per year which was less than inflation, while those with stock based compensation saw their numbers jumping 20% a year or more. Part of what Biden is trying to do is work on income inequality which is a real problem in this country, and that is more long term, we have shit infrastructure that is going to soon bite us in the ass.
By the way, I also am not arguing that with stimulous that we need to look at the real numbers out there, the inflation numbers if this is caused by the screwed up supply chain may be a red herring. I would love to see real data on open jobs and what they are paying. Normally when there is labor shortages employers raise salaries, but because they have so loved the past almost 20 years where wages for most people are stagnant or fell and they could get to pay what they wanted. unfortunately all I see is republicans talking about how Joe Smith with his lumber yard can't get people but they don't mention what they are paying. They interviewed one guy locally who owns a string of franchise restaurants and he was complaining, and it turned out when they investigated he was actually paying less than what he did during height of covid, he basically had returned wages to where they were in 2019 then whined (meanwhile profits at his stores were really, really high).
I would love to see real data that shows open jobs and then what they are paying compared to what they were paying for the same job in 2019. Would bet you would find that where there are big job openings the wages they are offering hasn't gone up much if at all.
ll74
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Inflation measures are responding to a large number of things, most of which haven't been seen since 1918. My guess is that we'll continue to see inflation due to production disruption, employment disruption and disruption to people's ability to contribute to the economy in a meaningful way due to pandemic measures.
But hey.....the stock market is still doing alright....so.....lol
But hey.....the stock market is still doing alright....so.....lol
ll74
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You hit the nail on the head here - the pandemic exposed a lot of things to people about their jobs.....from those who kept them to those who lost them. Even to businesses who have come to realize office space a little differently these days.
It's going to take a long time to recover from that sort of thing and even when we do, I doubt anything will look like it did pre-Covid.
Rightguide
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How come there's unanswered "now hiring" signs in windows all over America?
Millions Are Unemployed. Why Can’t Companies Find Workers?
Among the reasons potential workers are holding back: fear of getting Covid, lack of child care and enhanced unemployment benefits
By Eric Morath
Updated May 6, 2021 11:05 am ET
https://www.wsj.com/articles/millions-are-unemployed-why-cant-companies-find-workers-11620302440
CornusKousa
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I love how both of you managed to ignore the government paying these same people NOT to work.
Take the welfare away, they'll work.
ll74
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I love how both of you managed to ignore the government paying these same people NOT to work.
Take the welfare away, they'll work.
There's nothing about that which is true.
Rightguide
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What a dummy. Why do you think so many states are denying government unemployment extensions?
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