Krugman: I Was Wrong About Inflation

[mayfly13]

Doesn't matter where you dump the money, it aways matriculates upward.

The poor are not providing the goods and services that the middle class demands.
The more money you print, the richer the top gets and the poorer the bottom gets due to inflationary pressures.

How could we get rid of this atrocious income inequality?
It's disheartening, we're back to a neofeudal serfdom society. Global this time. But we can't do anything about it without creating a lethal imbalance.

 

[QueequegsHead]

You can't. It's a built-in feature of human nature that some people are just more competitive, aggressive and driven. For the most part those in the lower tiers are there not from some economic inequality, but their own damned behavior(s). It might help some to get back to teaching basic economics in the schools, but that is not in the plans of the rich and powerful nor within the wheelhouse of a lot of people who simply are not going to pay full attention and continue to let instant gratification ruled their actions/activities.

 

[mayfly13]

When President Clinton raised taxes of the richest five percent of the U.S. population by a fairly small amount, Republican economists predicted a recession. What we got instead was low inflation, low unemployment, and eventually balanced budgets that reduced the national debt. Where were the Republican economists who admitted that they were mistaken?
President Biden's mistake was in not raising taxes on the rich before handing out stimulus checks.

good one

 

[mayfly13]

You can't. It's a built-in feature of human nature that some people are just more competitive, aggressive and driven. For the most part those in the lower tiers are there not from some economic inequality, but their own damned behavior(s). It might help some to get back to teaching basic economics in the schools, but that is not in the plans of the rich and powerful nor within the wheelhouse of a lot of people who simply are not going to pay full attention and continue to let instant gratification ruled their actions/activities.

you think like a psychopath

 

[QueequegsHead]

You really can't raise taxes on the rich. They have several accounting tricks they employ and when they provide goods and services, they bundle in the cost of taxation to protect their profit margin. To think that you can tax your way into prosperity on the backs of the rich is a chimera born of wealth/class envy. Envy is a deadly sin, and for a reason. It does not content the malcontent, it just adds fuel to the fire and gives less-than-honest politicians a tool to use in the test for wealth and power.

 

[QueequegsHead]

you think like a psychopath

No, that is the observational knowledge that I learned over the years in my life that I spent dealing with those people. If I was able to pull myself up by my own bootstraps, then there was not a damned thing holding the majority of them back.

 

[mayfly13]

No, that is the observational knowledge that I learned over the years in my life that I spent dealing with those people. If I was able to pull myself up by my own bootstraps, then there was not a damned thing holding the majority of them back.

My point wasn't about 'those people' from the bottom.
It was about the massive engineered wealth transfer from everyone to neofeudals.

 

[QueequegsHead]

Who is the architect of said "engineering?"

You can't name one because, as I already stated, this condition is caused by basic human nature.
Socialism and Communism when applied could not alleviate this reality.

 

[mayfly13]

Who is the architect of said "engineering?"

You can't name one because, as I already stated, this condition is caused by basic human nature.
Socialism and Communism when applied could not alleviate this reality.

when you were young, you could buy a house or support your wife and kids with an average salary.
Young people no longer can.

 

[QueequegsHead]

Then why did both of my parents work?

 

[HisArpy]

Then why did both of my parents work?

Worse, if what Mayfly said were true, younger people would not be able to buy homes. Without them, no homes will be sold and "the wealthy" will be stuck with all their "wealth" tied up in real estate. Which will force home prices down and cost "the wealthy" trillions in lost value.

Ha! Look, Mayfly stuck it to the rich! That'll teach 'em.

 

[Rightguide]

was it because the rescue money went to corporations?

dunno about economics, but during the Pandemic govts pumped heaps of 'stimulus' money into them. They emerged far richer than before , and the working class ... more poor

It's because the rescue money was printed and not backed by anything of value like the production of goods and services. The government didn't have the money so they merely printed it and placed it into circulation which drives down the value of all of the currency in circulation that was produced by work. As a result now that the value of the preexisting currency in circulation has been reduced prices have to rise to account for the devaluation.

 

[Rightguide]

This week we're going to see Joe Biden running away from recession by redefining it and saying we aren't in one. The friggin' numbers must really be bad..

 

[Rightguide]

Even CNN isn't going for Joe's redefining recession:

https://townhall.com/tipsheet/spenc...ling-biden-out-for-denying-recession-n2610811

 

[Rotadom]

Gas prices have gone every day for 42 straight days.

 

[Rotadom]

This week we're going to see Joe Biden running away from recession by redefining it and saying we aren't in one. The friggin' numbers must really be bad..

Even CNN isn't going for Joe's redefining recession:

https://townhall.com/tipsheet/spenc...ling-biden-out-for-denying-recession-n2610811

You're confused

 

[Rightguide]

Gas prices have gone every day for 42 straight days.

It's still twice as high as it was when Biden took office.

 

[Rightguide]

You're confused

Hardly. At least you were brave enough to sign your post.

 

[Rotadom]

It's still twice as high as it was when Biden took office.

Was it too high the day before he took office or the day right after?

 

[Rightguide]

Was it too high the day before he took office or the day right after?

It has doubled since his swearing-in due to his incompetent policies and wacko Marxist appointees and advisors.

 

[Rightguide]

Well now, let's see if the Fed raises rates by another 75 basis points tomorrow and drives another nail into the Democrat coffin. We will then have a new phenomenon, a recession with both high inflation and high-interest rates. Unlike 1994-95 we now have inflation moving higher than interest rates, so it isn't as if the Fed can jump on the beginning of an inflationary cycle because we are already in one and the Fed is finding itself running hard to catch up. Next up watch the housing market collapse. Nobody is going to want to sell their house and move into a higher interest rate on a new mortgage. This is what happens when economically ignorant Democrats think they have a better idea about what the laws of economics represent. Now that they have convinced a sufficient number of clueless dummies that men can become women, they think they can redefine what a recession is as well. Nobody will be fooled by their bullshit. We are now in a recession up to our ankles, by election dat it will be up to our knees.

 

[Rightguide]

Well now, there you have it, 75 Basis points:

https://www.cnbc.com/2022/07/27/fed-decision-july-2022-.html

 

[JohnEngelman]

I am waiting for Arthur Laffer to say, "I was wrong about the ability of Reagan's tax cuts to balance the budget."

​

 

[Rightguide]

I am waiting for Arthur Laffer to say, "I was wrong about the ability of Reagan's tax cuts to balance the budget."

​

He forgot to plug "Democrats" into his equation.

 

[JohnEngelman]

He forgot to plug "Democrats" into his equation.

Congressional Democrats who went along with Reagan's policy of cutting taxes for the rich while raising military spending share responsibly for Reagan's deficits. Most Congressional Democrats did not go along. Congressional Democrats were under no obligation to cut domestic spending programs that they knew were popular with people who voted for them.