Biden's America: Inflation will require Americans to spend $3,500 more in 2021

[Counselor706]

As Americans suffer the severe economic consequences of soaring inflation, the average U.S. household will have to shell out about $3,500 more in 2021 in order to match their consumption levels from prior years, according to an analysis by the Penn Wharton Budget Model.

"We estimate that inflation in 2021 will require the average U.S. household to spend around $3,500 more in 2021 to achieve the same level of consumption of goods and services as in recent previous years (2019 or 2020)," the analysis notes.

Source

 

[pecksniff]

The present inflation is certainly not attributable to government spending. There has not been that much of an increase in spending yet.

 

[Rightguide]

The present inflation is certainly not attributable to government spending. There has not been that much of an increase in spending yet.

You see folks, the left is always full of shit. It is about government spending and the guy presently running the government who demanding we print 3 trillion or so and spend it.

 

[Rightguide]

Peck thinks everyone is getting a $3500 raise in disposable income.

 

[pecksniff]

You see folks, the left is always full of shit. It is about government spending and the guy presently running the government who demanding we print 3 trillion or so and spend it.

But, that hasn't happened yet.

 

[Bud_Spencer]

The present inflation is certainly not attributable to government spending. There has not been that much of an increase in spending yet.

There's lies, damned lies, statistics and Pecksniff posts.

 

[Bud_Spencer]

But, that hasn't happened yet.

First thing the Dems did was spend $1.9T on "covid relief."

 

[Lazaran]

.
That's a good argument for passing the Build Back Better Framework. Americans deserve some relief from the government in respomse to the free market private sectors failures.

*nods*

 

[LittleDixie]

The present inflation is certainly not attributable to government spending. There has not been that much of an increase in spending yet.

lol

Peck, you're never going to accept that inflation is caused by government printing money. It really doesn't matter what the argument or the data shows, does it?

 

[pecksniff]

lol

Peck, you're never going to accept that inflation is caused by government printing money. It really doesn't matter what the argument or the data shows, does it?

Of course it can be. But the inflation of the 1970s was not caused by government spending or monetary policy, it was caused by a rising cost (imported petroleum) external to the American economy and beyond the control of American leaders. Inflation -- and deflation -- can have all kinds of roots.

 

[LittleDixie]

Of course it can be. But the inflation of the 1970s was not caused by government spending or monetary policy, it was caused by a rising cost (imported petroleum) external to the American economy and beyond the control of American leaders. Inflation -- and deflation -- can have all kinds of roots.

There is an argument that easy money policies from the Fed contriubuted a lot to the inflation in the 1970's.

Really, as a rule of thumb, the more you poke at something the more you are going toupset the natural order of things. Economics is broadly a field of "equal and opposite reactions", and one thing that I've picked up is that there are no free lunches - if you do something now for short term gain, it will eventually catch up with you. This country has been trying to keep the pendulum swinging upwards for decades now, and at some point, the laws of nature will demand a correction. This will likely result in a total collapse of the dollar and possibly the US government.

 

[pecksniff]

Really, as a rule of thumb, the more you poke at something the more you are going toupset the natural order of things.

There is no natural order of things that does not include the poking. The notion that there ever could be is one of the most wrong-headed delusions of libertarianism.

 

[LittleDixie]

There is no natural order of things that does not include the poking. The notion that there ever could be is one of the most wrong-headed delusions of libertarianism.

It's wrong headed to think that people ever could trade freely without the government intruding and upsetting the values of everything with subsidies and tax credits and endless tinkering with interest rates and currency printing?

Sure, they could. All the government has to do is stop.

Stop tinkering. Stop interfering. Let things be. Let people find the value of things on their own. It's really super easy.

 

[pecksniff]

It's wrong headed to think that people ever could trade freely without the government intruding and upsetting the values of everything with subsidies and tax credits and endless tinkering with interest rates and currency printing?

Yes, it is. That state of affairs has never existed and it never will. You will see a workable Marxist utopia come into existence before you will ever see a Libertopia that is in any important way distinguishable from the present state of Somalia.

 

[LittleDixie]

Yes, it is. That state of affairs has never existed and it never will. You will see a workable Marxist utopia come into existence before you will ever see a Libertopia that is in any important way distinguishable from the present state of Somalia.

Somalia is a parliamentary representative democratic republic.

The primary reason why Somalia is a shit hole is because the US deposed the government there in 1991 and left power vacuum that warlords have been trying to take control of ever since.

Somalia is an example of all of the things wrong with government. Everyone knows that being in charge means you get to be rich and have power over your rivals. Everyone wants the bribes they can get and live the lavish lifestyle and have their enemies imprisoned of executed.

So, you're not right about Somalia being the representation of anarchy. Somalia is a perfect symbol of all the things wrong with governments.

 

[Rockymtnman]

Then make more money? Inflation happens. Maybe not as steeply as right now but when faced with the issues of the past two years... government was the only institution with the might to keep this country afloat.

Without the stimulus package, many American families would have folded like a cheap suit. Mostly because they lived beyond their means and on credit before COVID hit. With little to no safety net of savings. Without stimulus packages, We would have seen a depression that made 1929 and 2008 look like child’s play.

Now we’re paying the consequences of rising inflation.

If $3500 ruins you ... then you need to rethink your life.

 

[pecksniff]

Somalia is a parliamentary representative democratic republic.

The primary reason why Somalia is a shit hole is because the US deposed the government there in 1991 and left power vacuum that warlords have been trying to take control of ever since.

Somalia is an example of all of the things wrong with government. Everyone knows that being in charge means you get to be rich and have power over your rivals. Everyone wants the bribes they can get and live the lavish lifestyle and have their enemies imprisoned of executed.

So, you're not right about Somalia being the representation of anarchy. Somalia is a perfect symbol of all the things wrong with governments.

And it's as good as things ever get without an effectual government.

 

[pecksniff]

An economist explains why the Democrats' spending plan doesn't pose a big risk of inflation.

 

[Champakian]

There are as many economists as their are opinions.

It's not a hard science and none of them are Hari Seldon...

 

[LittleDixie]

Then make more money? Inflation happens. Maybe not as steeply as right now but when faced with the issues of the past two years... government was the only institution with the might to keep this country afloat.

Without the stimulus package, many American families would have folded like a cheap suit. Mostly because they lived beyond their means and on credit before COVID hit. With little to no safety net of savings. Without stimulus packages, We would have seen a depression that made 1929 and 2008 look like child’s play.

Now we’re paying the consequences of rising inflation.

If $3500 ruins you ... then you need to rethink your life.

Have you ever considered that maybe these families need to fold like a cheap suit?

When people live beyond their means on credit, they are putting themselves in financial peril. Facing the consequences of that peril might just teach them and future generations a lesson.

Bob is a heroin user, and he's been using a lot more lately. He's borrowed money from all the wrong people to supply his habit, and he lost his job. He needs more assistance from his neighbors, otherwise he'll have to face withdrawal and he'll have to pay back the people he borrowed money from. This is Bob's problem. This is something Bob has to face the consequences of.

But, you say that without the stimulus check, many families would have folded. And you also say that if $3500 ruins you, you need to rethink your life. This is hillarious, because depending on how many kids you have, the stimulus checks would be total around $3500. Ergo, the people who needed the stimulus checks need to rethink their lives, right?

 

[Champakian]

"Widespread inflation always comes from people wanting to buy more of everything than the economy can supply," observed economist John Cochrane, a senior fellow at Stanford's Hoover Institution and an adjunct scholar of the Cato Institute. "Where did all that demand come from? In its response to the pandemic, the U.S. government created about 2.5 trillion new dollars, and sent checks to people and businesses. It borrowed another $2.5 trillion, and sent more checks to people and businesses. Relative to a $22 trillion economy, and $17 trillion of existing (2020) federal debt, that's a lot of money."

Reason.com (Libertarian)

 

[Champakian]

Tracy Miller, a senior policy research editor with George Mason University's Mercatus Center, agrees with Cochrane, especially regarding the danger of money created out of thin air.

"Inflation is not directly caused by government deficit spending," notes Miller. "It's the result of the money supply, which is controlled by the Federal Reserve, increasing faster than the output of goods and services."

"We're already experiencing the highest rates of inflation in 30 years, and it can be blamed on the expansion of the money supply since the beginning of the pandemic," Miller adds. He warns that the Build Back Better bill's reliance on debt funded with money created by the Federal Reserve threatens more of the same.

Reason.com

 

[JohnnySavage]

I said as much in another thread wherein Pecker said the government wasn't spending money.

The Fed is buying debt like the legislature is going to stop creating it. The economy is awash with cash. That's the cause of the current inflation.

 

[Rightguide]

An economist explains why the Democrats' spending plan doesn't pose a big risk of inflation.

Yes, there are those on the Commie left that will say anything to protect the left and its idiotic Socialism.

“Inflation is always and everywhere a monetary phenomenon.”

― Milton Friedman, Money Mischief: Episodes in Monetary History

 

[Sean Renaud]

lol

Peck, you're never going to accept that inflation is caused by government printing money. It really doesn't matter what the argument or the data shows, does it?

Why would someone agree to something that simply isn't true?

You see folks, the left is always full of shit. It is about government spending and the guy presently running the government who demanding we print 3 trillion or so and spend it.

No it is not about government spending, at least not exclusively. You have the internet, why haven't you gone and looked up the facts?