I Don't Know If Joe Can Do It

[ondma]

The inflation rate just released today was 5.39% for September. Slightly higher than the Aug rate actually.
Anybody that sees a downward trend here is dreaming: https://ycharts.com/indicators/us_inflation_rate
More than half of the increase came from food and shelter. Of course, we can avoid paying for those right? /s

 

[fskimospy]

The inflation rate just released today was 5.39% for September. Slightly higher than the Aug rate actually.
Anybody that sees a downward trend here is dreaming: https://ycharts.com/indicators/us_inflation_rate
More than half of the increase came from food and shelter. Of course, we can avoid paying for those right? /s

You do realize there's a reason why core CPI is used and not headline CPI, right?

This is what always happens in the inflation debate. Despite inflation being disastrously low over the last 12 years or so people keep insisting it's way too high. Trust me, there's nothing I would like better than sustained ~3-4% inflation for the next few years. It's already coming down though and it will probably continue down, unfortunately.

It's one thing I wish the media would be better about because the average American doesn't realize that inflation is good for them.

 

[sandorski]

These are temporary Supply and Supply Chain issues.

 

[Ajay]

Okay, I, along with my good buddy Paul (j/k) must eat some crow:



Actually, it doesn't appear that Nobel Laureates eat crow

 

[fskimospy]

Okay, I, along with my good buddy Paul (j/k) must eat some crow:

View attachment 51441

Actually, it doesn't appear that Nobel Laureates eat crow

Although the guy responding to Krugman is saying that he should never have used median CPI at all, not that he should use it now.

 

[Ajay]

Although the guy responding to Krugman is saying that he should never have used median CPI at all, not that he should use it now.

Okay, thanks. I'm going to have to mull that over a bit. Wish I'd had time to take a couple of Econ classes in college. That said, I really do not understand the panic over the current uptick in inflation after a decade + of very low levels. There has been a huge shock to the world wide economy and social fabric. There are natural consequences from that, and governments, which tend to be reactive by nature, can only do so much to reduce the rate of increase and decrease then time it takes to get back to historical averages. Large private corporations must also do their part, and Biden is giving them a swift kick in the ass to do just that. **

I do hope inflation doesn't crash back down too fast, mainly because I want employers to respond to the labor shortage with better wages and benefits, since our government can't seem to get that done (not for a lack of trying by the democrats).



** The EU is in the midst of a push to get companies off their butts and become part of the solution. Some of their labor shortages are due to the systematic neglect of recruitment and training of certain jobs that have become less desirable, like trucking and nursing. Both of these going back 10-20 years in some countries. One of the suggestions on their table - incentives and policies that increases wage increases in certain jobs critical normal operation of a nation-state; republican politicians would collectively faint over such an idea. Human and physical 'infrastructure' development, duh!

 

[gothuevos]

It's one thing I wish the media would be better about because the average American doesn't realize that inflation is good for them.

Explain, please.

 

[fskimospy]

Explain, please.

The average American is a net debtor, inflation reduces the real value of debt.

 

[IronWing]

The average American is a net debtor, inflation reduces the real value of debt.

The flip side is that the responsible people (poke ) save their pennies and are getting screwed as inflation has been consistently higher than interest rates on savings.

 

[fskimospy]

The flip side is that the responsible people (poke ) save their pennies and are getting screwed as inflation has been consistently higher than interest rates on savings.

A lot of responsible people have a fixed rate mortgage worth more than whatever they have in their savings account so it helps them too.

 

[uclaLabrat]

If you're saving your money (more than you need as a buffer for emergencies or other liquidity situations) by letting it sit in a savings account...WTF?

Not a financial guru by any stretch but doesn't it make sense to stash it anywhere else so it will accrue some interest?

 

[ondma]

The average American is a net debtor, inflation reduces the real value of debt.

That is only part of the story though. If one's wages don't keep up with inflation, they they have less buying power, leading to even more borrowing, which leads to more debt, which leads to devoting more of his income to paying interest. Rinse and repeat, and you have a cycle you can never got out of.

So whether inflation is "good" or not is not so simple as Skimpy want to make it. It is highly dependent on one's situation. It also tends to hurt most those who are on the lower end of the economic scale. Yes, the value of one's debt may decrease, but one tends to keep adding debt also.

 

[fskimospy]

That is only part of the story though. If one's wages don't keep up with inflation, they they have less buying power, leading to even more borrowing, which leads to more debt, which leads to devoting more of his income to paying interest. Rinse and repeat, and you have a cycle you can never got out of.

Wages do rise with inflation though. That's basically the primary mechanism for inflation! It's also why the Fed's constant opposing pressures are full employment and inflation. When you have full employment businesses have to compete for workers and wages rise, causing inflation.

So whether inflation is "good" or not is not so simple as Skimpy want to make it. It is highly dependent on one's situation. It also tends to hurt most those who are on the lower end of the economic scale. Yes, the value of one's debt may decrease, but one tends to keep adding debt also.

No it does not, people on the lower end are those it helps the most as they tend to be the most indebted.

To see why I'm right about this just think about who is constantly arguing for higher interest rates (and therefore lower inflation): rich people. This is not because they are so kind and generous to poor people and want to help them out.

 

[ondma]

Huh? He’s taken a number of large steps including a mandate for all businesses with more than 100 employees. Numbers are in steep decline all over the country.

How is what you’re saying connected to reality in any way?


Inflation is declining and will continue to decline, which overall is probably bad in the long run as regular Americans could really use sustained higher inflation.


I agree this situation isn’t good.

Execution seemed fine to me. I have yet to see a critique of how it would have been meaningfully better that didn’t rely on magical thinking or hand waving problems away.

I predict both bills are passed within the next month or so.


You spent several posts in this thread arguing Biden was not a viable candidate in 2020 and he went on to win by 7 million votes.

You: Biden is doomed in 2020!
Biden: wins.
You: well now Biden is doomed in 2024!

So, Skimpy, how is that "declining" inflation going these days. The latest figure (7.2%) was the highest in what, 40 years?

 

[Jaskalas]

Good lord, what has this topic become?
A play on the title, now questioning whether Joe can do his job as President? Becoming a segue to inflation?

Okay then....

Americans could really use sustained higher inflation. ​

Mission accomplished? Not sure Biden has much to do with it. High prices are largely a matter of supply chain disruption. I don't think morons have any clue just how much defeating scarcity improved our lives. Now that it has returned, and you can be charged ANYTHING for a product, and will continue to do so until the people are milked dry, taken for every little thing they are worth until nothing remains.

The pandemic economy is misery, and pain. The incumbents holding office will find voters eager to make them pay. And Republicans desperate to blame Biden. Shame if the message sticks, but it will be easy to do so. He has a couple years to "fix" it. Not sure America can recover that fast, especially with COVID still an issue to this very day. A full year after it was supposed to be defeated. Now truckers stopping trade routes, disrupting the supply chain. More pain to follow.

We live in interesting times. The President is just along for the ride.

 

[BUTCH1]

Good lord, what has this topic become?
A play on the title, now questioning whether Joe can do his job as President? Becoming a segue to inflation?

Okay then....

Americans could really use sustained higher inflation. ​

Mission accomplished? Not sure Biden has much to do with it. High prices are largely a matter of supply chain disruption. I don't think morons have any clue just how much defeating scarcity improved our lives. Now that it has returned, and you can be charged ANYTHING for a product, and will continue to do so until the people are milked dry, taken for every little thing they are worth until nothing remains.

The pandemic economy is misery, and pain. The incumbents holding office will find voters eager to make them pay. And Republicans desperate to blame Biden. Shame if the message sticks, but it will be easy to do so. He has a couple years to "fix" it. Not sure America can recover that fast, especially with COVID still an issue to this very day. A full year after it was supposed to be defeated. Now truckers stopping trade routes, disrupting the supply chain. More pain to follow.

We live in interesting times. The President is just along for the ride.

I honestly think that many are just using covid as an excuse to charge much higher prices, after all everyone else is doing it, right?

 

[Sonikku]

Good lord, what has this topic become?
A play on the title, now questioning whether Joe can do his job as President? Becoming a segue to inflation?

Okay then....

Americans could really use sustained higher inflation. ​

Mission accomplished? Not sure Biden has much to do with it. High prices are largely a matter of supply chain disruption. I don't think morons have any clue just how much defeating scarcity improved our lives. Now that it has returned, and you can be charged ANYTHING for a product, and will continue to do so until the people are milked dry, taken for every little thing they are worth until nothing remains.

The pandemic economy is misery, and pain. The incumbents holding office will find voters eager to make them pay. And Republicans desperate to blame Biden. Shame if the message sticks, but it will be easy to do so. He has a couple years to "fix" it. Not sure America can recover that fast, especially with COVID still an issue to this very day. A full year after it was supposed to be defeated. Now truckers stopping trade routes, disrupting the supply chain. More pain to follow.

We live in interesting times. The President is just along for the ride.

He sure as shit isn't turning the country around in two years with Republicans sure to hold one or both houses of Congress. And even if he could, voter suppression and gerrymandering is about to crank into overdrive. No way the Dems win in 2024 I'm calling it now.

 

[fskimospy]

So, Skimpy, how is that "declining" inflation going these days. The latest figure (7.2%) was the highest in what, 40 years?

You’re right, inflation has remained higher longer than I thought it would.

It doesn’t change the fact that on the point relevant to this thread you said Biden was doomed in 2020 right up until he crushed Trump. Upon seeing you were wrong you then…decided he was doomed in 2024.

 

[cytg111]

You’re right, inflation has remained higher longer than I thought it would.

The ultimate weapon that will forever have right winger trumpists scrambling: Correlation to reality and ability to say I was wrong.
They simply don’t understand the concept.

 

[eelw]

Wonder if Biden could mandate companies to not raise prices during this time? There’s one thing to cover excess costs for more frequent cleaning and PPE. It’s a totally different thing in the price gouging by the gas companies and used car dealerships. But supply and demand they’ll argue. But with record profits being earned, it’s not like restaurants just trying to get ends to meet.

 

[Muse]

He sure as shit isn't turning the country around in two years with Republicans sure to hold one or both houses of Congress. And even if he could, voter suppression and gerrymandering is about to crank into overdrive. No way the Dems win in 2024 I'm calling it now.

If the Repubs dish out Trump they WILL lose. I don't think Desantis can win. WTH can they put forth who comes across as sane? The GQP has given up on making sense. Repubs can try to blame the Demos for inflation, but can they make the case that they won't make it worse? No.

Baring major covid waves after Omicron fades I think inflation will gradually subside. It's mostly supply/demand. There's some gouging going on, sure. People will adapt, industries will adapt.

 

[sportage]

Wonder if Biden could mandate companies to not raise prices during this time? There’s one thing to cover excess costs for more frequent cleaning and PPE. It’s a totally different thing in the price gouging by the gas companies and used car dealerships. But supply and demand they’ll argue. But with record profits being earned, it’s not like restaurants just trying to get ends to meet.

Mandate? Mandate???
There's that F-ing word again!!!
If Biden uses that word one more time I seriously fear for his safety.

But, glad to see my little thread is alive and well. And remember, this thread was started back in June 2020. Long before we had insurrections or faked electors or claims of stolen elections.
My on my how time flies by.
Looking back, instead of the heading I DONT KNOW IF JOE CAN DO IT, the better heading should have been I DONT KNOW IF DEMOCRACY CAN SURVIVE.

 

[gothuevos]

If the Repubs dish out Trump they WILL lose. I don't think Desantis can win. WTH can they put forth who comes across as sane? The GQP has given up on making sense. Repubs can try to blame the Demos for inflation, but can they make the case that they won't make it worse? No.

Baring major covid waves after Omicron fades I think inflation will gradually subside. It's mostly supply/demand. There's some gouging going on, sure. People will adapt, industries will adapt.

Biden's ratings are in freefall, especially with independents and he has even lost some progressive support. He is probably even less popular than Trump.

How this will correlate to actual voting patterns remains to be seen, but we saw how the Bernie Bros were willing to sink Hillary if they didn't get everything on their wishlist and I suspect progressives will do the same again in 2024.

 

[gothuevos]

Mandate? Mandate???
There's that F-ing word again!!!
If Biden uses that word one more time I seriously fear for his safety.

But, glad to see my little thread is alive and well. And remember, this thread was started back in June 2020. Long before we had insurrections or faked electors or claims of stolen elections.
My on my how time flies by.
Looking back, instead of the heading I DONT KNOW IF JOE CAN DO IT, the better heading should have been I DONT KNOW IF DEMOCRACY CAN SURVIVE.

I think we just need to come to terms that a large, and growing, percentage of the voting block simply does not value democratic values anymore. They value winning at all costs, more than anything. Right or wrong, that is their perception of what must be done to "save" the country.

And if that plays out at the polls how I suspect it will, then we need to accept that as the will of the people. If people want authoritarianism, then they can vote for it and there is no magic remedy in the Constitution to prevent it.

 

[vi edit]

I think we just need to come to terms that a large, and growing, percentage of the voting block simply does not value democratic values anymore. They value winning at all costs, more than anything. Right or wrong, that is their perception of what must be done to "save" the country.

And if that plays out at the polls how I suspect it will, then we need to accept that as the will of the people. If people want authoritarianism, then they can vote for it and there is no magic remedy in the Constitution to prevent it.

You confuse growing block with systemically guaranteed advantage.

The majority *do not* want this. But because of our archaic electoral college, overinflated value of senate representation of low population states and local fuckery of voting access the majority is not heard.

We have minority rule.