son of witless wrote:
Thank you very much for talking to me. Lately I have felt like the red headed step child. My new topics disappear, sometimes they never appear at all, and some of your left of center brethren have invited me to stop replying to their posts.
I apologize for saying you blamed Trump for the Covid slowdown during his Presidency. The dossiers which I keep on every poster on OPP seem to be inaccurate in your case. ( kidding ), not that I haven't tried.
I am very informed about economic cycles and that a President can get caught in an economic tide or current that is bigger than what his policies can correct. That said, like a canoeist in a river rapid, his actions can make the difference in whether everything goes totally to shit or not.
Thank you very much for talking to me. Lately I ha... (
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Thank you for your civility and for maintaining a focus on the topic.
son of witless wrote:
Why I will continue to say that President Biden is to blame for high inflation is based on two different main points. First, the economy was awash in liquidity from the Trump stimulus packages. I did not like them, but I can argue that with the covid lock downs they were a necessary evil.
I agree the stimulus package was a necessary evil. We are essentially a consumer-driven economy so it's important to keep the bottom funded. BTW, Trump wasn't really responsible for that stimulus package... that came from Congress. The point of bringing this up isn't to deny Trump any credit but to suggest that ANY president including Biden would have signed it. In any case, I don't agree that this stimulus package left the economy awash in liquidity. If it did there wouldn't have been a need for a second stimulus package.
son of witless wrote:
Please bear with me. In the months after the Biden election and up until his inauguration, the economy was opening back up. People were going back to work. This meant that consumer demand for fuel, food, and travel was beginning to explode. Unfortunately oil wells, refineries, and other supply chains cannot just be switched back on. It takes a lot of time.
Here's where I suggest you do a little more research. The fact is, oil and gas was never shut down - not even a little bit. Biden's so-called "war" on oil and gas is based on misinformation stemming from his decision to stop leasing federal land to the carbon fuel industry. That only put a stop to plans for future drilling that would not even be online for another ten years from now.
What actually did happen is that the pandemic effect on the economy brought market demand for energy down momentarily, which dropped share prices. The oil companies took advantage of that lull to buy back stocks on the cheap. When the demand shot back up (as they knew it would) they simply took advantage again and increased the price of oil and gas, which is typically how inflation happens.
None of this has anything to do with Trump OR Biden. The price of oil and gas is set by those trading the commodity not the government. This isn't North Korea.
Also despite his claims, there is nothing Trump can do to increase production that the industry isn't already doing under while Biden sits in office. Trump could possibly have an impact on oil production 10 years from now by reversing Biden's policy on saving federal land from industrial greed, but it's my hope that 10 years from now, we will be far less dependent on fossil fuel to power our antiquated machines.
son of witless wrote:
As people again felt confident enough to spend freely, there simply were not enough supplies of goods.
Another correction (sorry) - there was an abundance of supplies... the problem was the traffic jam in distribution. This is why ports like Long Beach CA had queues of ships waiting to unload and not enough space to put everything. In simple terms, our infrastructure wasn't able to handle the interruption to the normal flow of products.
son of witless wrote:
Those with more money, out competed the rest of us. We tried to compete back.
This is a constant normal. Those with more money engage in the market at a different scale of economy than we do as middle-class Americans. This is one of those things where I think people need to wake up and smell the coffee.
son of witless wrote:
Everyone had covid money. Prices had to go up.
I don't think the money people got from the stimulus package was enough to have THAT much effect on market demand. For the reason I just mentioned (scale of economy), it would literally take millions of Americans with their little stimulus checks to equal the power of a single investor in the top 1% who can actually change the market by dumping several million dollars in one trade. This is the reason why economists started to make references to the Wall Street economy as a contrast to the Main Street economy.
son of witless wrote:
Then Joe Biden finally took office. What he should have done was wring money out of the economy to retard demand until supply could catch up. He did the exact opposite. He threw more gasoline on the inflation fire with his stimulus bills.
So Trump signs a stimulus bill and you're OK with that because it was a "necessary evil" and a few months later Biden signs another one and that's throwing gasoline on a fire?
I get what you're saying about the timing... but those bills were only a few months apart. The economy doesn't change as drastically as you are suggesting in just a few months.
As I had already suggested, the first stimulus package helped people at the bottom to get out of some tight spots, but it wasn't enough to drive any significant change in market demand. A paltry .05% growth rate in the GDP would do more. The second wave of stimulus checks didn't do much more. Again, it saved some families at the bottom which in my opinion makes the stimulus package worthy but it certainly didn't have the impact on the economy that you seem to be suggesting.
One thing to recognize is that one-time checks issued to middle-class Americans always helps their situation for a day but it never makes much difference to the economy as a whole. Jobs are far better because a job will actually change a consumers budget.
son of witless wrote:
Part of that was extending the no evict period. This was to further incentivize workers not to go back to work, which further slowed the supply chain expansion. This was all inflationary.
That's pure speculation... I personally don't know anyone stupid enough to think that a temporary freeze on evictions would alleviate them from needing a job. I don't know if you gave this much thought, but you are actually suggesting that Americans ARE that stupid.
The freeze on evictions simply gave people the chance to stay in their place of residence long enough for them to GET a job, which is a lot harder to do when you're homeless.
son of witless wrote:
The second main thing President Biden did that caused inflation was to declare war on oil and gas. Again the exact opposite of what a sane President would have done. Energy inflation became a key driver of general inflation because oil fuels move most goods in America. I don't care WTF Biden spouts, electric Tractor Trailers ain't getting the job done.
You already mentioned this and I already responded... Biden didn't cut production. Look up the facts. I realize this is the narrative that you are subscribing to but it's a false narrative. Energy inflation was 100% driven by the industry in an effort to profit from the economic disruption. There's nothing Biden or Trump could have done (or could do) about it without interfering with free market forces, which the presidency does not have the authority to do.
I understand the principles being employed by this false narrative and it would even make sense if everything else was equal but that just isn't the reality. Floating this narrative is like suggesting a paper airplane can break the sound barrier simply because it flies.
son of witless wrote:
I will shut up now because you look bored.
LOL - Well, being confronted with the same false narratives over and over again does get a bit boring at times, but when people like yourself actually put the effort into rationalizing a narrative, it gives me hope that they might actually understand my counter arguments or maybe even educate me.