son of witless

I am impressed that for a change one of you Liberals actually posted an article from a respected source to back their arguments. I frankly am in shock. This almost never ever happens. Okay, I am over it.

I disagree with the article. I will argue that for the article to be true, then there is no reason for the Federal Government to ever be concerned with it's spending. 2022 the budget was $ 5.7 Trillion. Since your premise is that Federal Spending does not cause inflation, then why doesn't Joe Biden stop screwing around and propose a budget of, I don't know, $ 100 Trillion.

By your logic Federal spending does not matter. That means it's all free money. The treasury and the Fed can just create unlimited money. I call it the Occasio-Cortez theory of economic prosperity. That stupid little Marxist witch thinks you can just create what ever money you want. So far under Brandon she has been right.

WW2 may have been the greatest period of US government spending of % of GDP in modern American history. The government was deficit spending a tremendous amount of real money and they created it out of thin air. And by your theory it did not create high inflation. Guess what you were right. Inflation during the great war wasn't bad, so I guess you are right, except that you aren't.

To control demand and keep inflation under control the Federal government had wage and price controls and rationing. After the war, somehow the Government would have found a way to suck up all of the money they created during the war years. What they would not have done was what Brandon did after c***d and continued to spend enormous amounts of money. Once rationing and wage and price controls came off post war, inflation would have exploded, just like under Brandon.

DASHY

I was not defending Doctor Cutsinger's scholarly article on government spending. I offered it to demonstrate how an economic research professor views the topic of inflation. The causes of inflation are complicated, including the affect of government policy. To say that Biden caused inflation is a political MAGA claim, not to be taken seriously.

Justice101

The following article from VOX, a left-leaning source disputes what you say regarding Biden causing inflation. It started with his $1.9 Trillion American Rescue Plan shortly after the country was starting to come out of the economic throes of the P******c after Trump's $2.3Trillion C***d relief spending package.

https://www.vox.com/23036340/biden-american-rescue-plan-inflation
The criticisms of the American Rescue Plan
The case that the American Rescue Plan contributed to inflation has three parts: its size, its timing, and the details of its spending.

First, the size: $1.9 trillion. Many economic analysts at the time argued that this was too big. saying their models showed so much new spending (on top of trillions already spent) wasn’t necessary to stimulate the economy, and risked overheating it and causing inflation. “I was on the expansionary side of every fiscal debate of my life up until last year,” said Furman. “But quantities matter. It can’t just be that more is better.”

In early 2021, a group of 10 Republican senators had proposed a $618 billion stimulus as a counteroffer to Biden’s. But Democrats, haunted by what they believed to have been policy mistakes from the Obama administration, rejected this, and decided going as big as they could was preferable to possibly spending too little.

“The sweet spot, I think, might have been a $300-500 billion American Rescue Plan,” said Strain. “That could have given us a lot of the benefits of the ARP without sparking such rapid price growth. The ARP was so big that the kind of marginal dollar went to inflation, not to increased economic output.”

Second was timing: that money was mostly spent quickly (about half was spent last year), rather than spread out over a longer period of time. This sent a lot of money flowing into the economy last year — which was the goal — except supply couldn’t keep up, and prices rose.

Third was composition: what the plan included. Much of the ARP’s spending did quite a lot to help people in need, with child poverty and child hunger falling. But other parts were not well-targeted. $350 billion was allotted to state and local governments under the outdated assumption that they’d be facing budget crises, but by early 2021 it was already clear most states weren’t facing such crises. (The White House official argued that while many states might not have needed the money, cities still did, and that these funds have been spent more slowly, so they probably haven’t contributed to inflation much yet.)

The checks were another issue. Birthed out of a political promise Democrats made to one-up Trump and try to win the Georgia Senate runoffs, the checks totaled about $400 billion in spending, and some of them went to families whose finances were already in fine shape. Giving money to people who don’t need it isn’t necessarily a bad thing in and of itself. But if the consequences are higher inflation and economic woes affecting everyone, well, it is a big deal.

“Had we made the checks smaller and more targeted, and spread out over time. I think we would’ve had less unwelcome inflation and a slower recovery in real activity,” said Edelberg. “That’s probably a trade-off, in retrospect, that would’ve been a good one to take.”

Meanwhile, the plan’s anti-poverty benefits proved to be temporary, when the expanded child tax credit expired at the end of 2021. Democrats had hoped to extend it further in the Build Back Better legislation, but Sen. Joe Manchin (D-WV) effectively k**led that bill last December, citing inflation concerns. Manchin was always skeptical about the expanded child tax credit on the merits, but rising inflation surely didn’t help Democrats’ case for further big spending.

Good intentions don’t always make good policies
High inflation is now here, and the worse and more persistent inflation is, the more likely it is that the Fed will raise rates to get it under control, and cause a recession.

It’s true that the American Rescue Plan wasn’t the primary cause of today’s inflation. But if inflation was always going to be a problem, then it’s important to avoid policies that could make it a much worse problem.

In retrospect, it seems that Democrats simply didn’t take this seriously enough back in early 2021. They wrongly concluded that a stimulus far in excess of what models said was necessary was the less risky option. They thought they were still in the “money printer go brrr” era, where there was less pressure to be judicious about where that money was going — so instead of targeting help to those who needed it, they sent hundreds of billions of dollars to well-off Americans and states doing just fine, for political reasons.

son of witless

The basic cause of inflation is too much government created money chasing too few goods and services. It is basic economics that has been known for thousands of years. One of the causes of the fall of the Roman Empire was inflation, or more accurately the debasement of their coinage. The Denarius was your basic Roman coin. Originally it was 90 % silver. Then it went to 50 % and finally less than 1 %. Inflation was a great way for rulers to steal from their subjects.

The Roman Emperors were no different than your boy Joesephus Bidenius. Ahhh but I know what you are thinking. What do I care about ancient Roman history ? How about we look at a slightly more recent example ? The Weimar Republic of post WW1 Germany in 1923 thought they could just print their way out of their money troubles. How very Democrat of them. https://alphahistory.com/weimarrepublic/1923-hyperinflation/

Perhaps, though I am not certain the highest denomination of paper currency ever issued was in post WW2 Hungary. They really really had a bout of hyper inflation. Daily inflation was 207%. It was the 100 quintillion pengő x 10 to the 20th power.

But I think I really should include the runners up in hyper inflation or at least give them honorable mention. You remember Venezuela, the American Liberal's favorite America hating South American country. 15-20 years ago your buddies couldn't praise them enough for their free health care and socialist way of life. In 2017-18 their inflation rate was, get ready, wait for it, wait for it, 65,000 %. I cannot even comprehend that number.

Yugoslavia 1992-94 daily inflation was 64.6%. Oh here is one you will like. During the Civil War the Confederacy suffered about a 9,000 % increase in prices. In the Union North it was 80 %.

What do all of these examples have to do with Biden's inflation ? The only difference between what Joe Biden did and what these other countries did is how much money they created. The fundamentals of destroying a currency over 2,000 years have never changed.

DASHY

No Republican supported the American Rescue Plan which provided needed relief for the American people. Today police departments all over the country are using Rescue Plan money to help fund their policing efforts. Apparently Republicans believe that helping struggling Americans is not top on their priority list. The economic effect is now being realized. Even "real" economists disagree about the causes of inflation. My understanding of how the economy works is limited to the theory of supply and demand. It is much more complicated than that. I agree with you that we should get better at targeting individuals and businesses that are in most need of help. A lot of relief funds are wasted on millionaires.

DASHY

It takes a greater understanding of what might cause inflation than the basic supply and demand theory. Comparing US economy with that of Venezula strikes me as a piss poor example.

keepuphope Loc: Idaho

If their using that fund for the police fine. The liberal democrats are letting violent people out a reviving door to commit crimes over and over by their virtue signaling to criminals and law abiding innocents are getting slaughtered because of it.

DASHY

This is part of the Rescue Plan that every Republican v**ed against. https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/23/fact-sheet-biden-harris-administration-announces-comprehensive-strategy-to-prevent-and-respond-to-gun-crime-and-ensure-public-safety/

How are liberal Democrats letting violent people out a revolving door?

Milosia2 Loc: Cleveland Ohio

No it’s not ok .
But , then again , it’s not ok letting them walk around free to plan another C**pD’etat.
Should we release them and let them continue to make plans to destroy this country ?
As trump is still doing every day ???

Justice101

The Republicans didn't support the plan because of the enormity of it. If you read what the article I used: is that what they wanted to support was a smaller amount bill: $500 Billion instead of the Democrat $1.9Trillion- which would have given the checks to the neediest people instead of those in the middle class who really didn't need the $1,400 check. Your whataboutisms about what "real economists say" isn't being t***hful if we can go to several "real" and expert economists and they all say that Biden's ARP was instrumental in causing the inflation (as well as the other high-priced bills that were passed) and it ties into the supply side economics that you are talking about.

Justice101

By your standards we should lock people up for protesting things that offend you or go against your beliefs or agenda.
The radical l*****ts are already making great strides towards destroying our country with their culture wars, distortion of words and history and denying that biology defines mankind.

son of witless

In your reply to Justice 101 you admitted that " My understanding of how the economy works is limited to the theory of supply and demand. " Yet you are more than willing to accept Doctor Cutsinger's over complicated story about the causes of inflation. Supply and demand theory is fine if you are talking about shortage caused price spikes, where particular goods become scarce and their price inflates.

In a money supply neutral environment a shortage of a particular good raises it's price. People then use less of it, by doing without or finding substitutes. If it is something they cannot do without, then they must pay the increased price, and cut back on other purchases to come up with the money. When a government pumps more money into the economy consumers do not have to cut back on other items to afford the scarce item, which then causes general inflation, which is what Biden caused.

To excuse Joe Biden you are ready to believe complicated theories which you admit you do not understand. If you do not understand them, maybe they are not true. I lived through the inflation of the 1970s. That was caused by one direct cause, too much money in circulation, but it had two underlying reasons.

The one not normally acknowledged was the large amounts of money the US spent in the 1960s on the Vietnam war.That money created to fund the war was still in circulation. The more direct trigger was the oil shortage of the 1970s. Lets us deal with that one. As imported oil and then gasoline inflated in price, initially it would have drawn money from other purchases. People would simply have less money for everything else in their lives.

However, between the excess money from the Vietnam War, and the government deficits, the money supply increased a lot as did inflation.

Now If you want to continue to reach for any desperate reason to blame someone, anyone but Joe Biden, out of the generosity of my large heart I will throw you a bone. You could make the case that the large c***d deficits that my boy Donald J. Trump was forced to run up also caused some of the inflation.

DASHY

I agree the Democratic Rescue plan had an affect on inflation. All Democratic lawmakers agreed the Rescue Plan had priority over the possible effect on the economy.

DASHY

Your opinions about the causes of inflation are as valid as anyone's. A professor in economics probably has a greater understanding of the causes of inflation than politicians who like to say without elaboration "Biden caused inflation". I'm not interested in blaming "someone". One person did not cause inflation.

Who forced former, one-term president Trump to run up the large C***d deficits that caused "some of the inflation"?

son of witless

When you're right, you're right. If these i***ts had wanted to stay out of jail, instead of staging a stupid r**t they should have committed an armed robbery. If they were white they would have been scot free in a weak. If they were Black they would have been out the same day.