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Friday, December 17, 2021

Inflation is good for you, peasant

A month ago, when MSNBC said inflation is a good thing, I said, well, that's MSNBC screwing with reality. Brian Williams was the perfect fit for the prevarication news channel.

Since then, Biden has told the media bosses to talk up his successes. Given that he's lost the War on Terrorism, surrendered our border, and killed more people with covid than his predecessor did, that leaves them the economy to chat up.

CNN trotted out, "Why inflation can actually be good for everyday Americans and bad for rich people."

You don't have to be Liz Warren or Bernie Sanders to know that is untrue. The upper 1% have seen their net worth sky rocket. The S&P 500 is up 50% in the last 2 years even with the covid crash in the stock market in February 2020. 

That was the first of many attempts by CNN to paint a smiley face on the Venezuela-ing of the economy by Biden. 

News Busters reported, "Over the course of two weeks, the cable network’s coverage of oil and gas prices shifted from 77% negative to 79% positive."

CNN drooled over a 4-cent drop in price in the last week while ignoring the dollar-plus rise since Biden was, um, elected.

Gasoline prices are at a 7-year high.

Rachel Martin of NPR gushed over inflation.

Martin said, "Even though that's obviously hitting a lot of us hard, there could be a bright side here in the form of higher wages. The Conference Board, a nonprofit that conducts economic and business research, says businesses are expected to increase pay an average of 3.9% in the next year."

Producer prices are up 9.6% in the last year. That is a solid indicator of what will happen to that raise next year.

By the way, wages rose 4% in 2019 without inflation. That's your economy under President Trump -- who left Biden with 1.4% inflation.

Another argument is that inflation comes with economic recovery.

Inflation is at a 39-year high. In that time we've had 3 recessions, including the 2008-2009 debacle. Nothing came close to this.

Paul Krugman of the New York Times is a Nobel-winning economist who invariably is wrong about economics. His Election Night prediction of a global depression and stock market crash upon the election of Donald Trump as president in 2016 is a moment in history he will never live down. 

Even he had trouble spinning inflation as a positive.

He wrote, "I believe that what we’re seeing mainly reflects the inherent dislocations from the pandemic, rather than, say, excessive government spending. I also believe that inflation will subside over the course of the next year and that we shouldn’t take any drastic action. But reasonable economists disagree, and they could be right."

Raising interest rates could stop inflation, but that would send unemployment skyrocketing.

I have a better idea. The government caused this. You want to end inflation? End everyone's COLAs. Make the bureaucrats suffer inflation first-hand. We will see inflation deflated in no time flat.

29 comments:

  1. Paul Krugman of the New York Times is a No brain-whinning economist who invariably is wrong about economics.
    FIFY

    ReplyDelete
  2. "I believe that what we’re seeing mainly reflects the inherent dislocations from the pandemic, rather than, say, excessive government spending."

    This is willful illiteracy. The problem with all the "excessive government spending" is that it is being "financed" (sic) by the modern-day version (few mouse clicks in a spreadsheet rather) of funding things by just printing play money.

    This is an old problem - governments have been debasing currency (such as by thinning coins or increasing the percentage of dummy metals in them) for millenia. One of Constantine the Great's greatest achievements (the one most-often forgotten) was to base the new eastern-based government of the Roman Empire on the solidus and not debase it - and it was solid as rock (not debased) for more than 700 years - and that kept the Roman Empire afloat until 1453.

    (BTW, only good part of that Krugman piece was his at least noting that "But reasonable economists disagree, and they could be right." For an egocentric leftist, this is a pretty startling thing to see. Imagine some green gasbag saying with respect to "climate change" (sic) that "But reasonable scientists disagree, and they could be right." Haven't seen that. Yet.)

    ReplyDelete
    Replies
    1. Actually - Trump was no budget hawk. But he had a booming economy that could absorb the money being thrown out there.

      Krugman has the record as being a Nobel laureate who is consistently wrong about his area of expertise because he is a leftwing loon.

      Biden has killed the economy. Productivity is falling, therefore the economy cannot support the dollars out there. In this environment, govt spending will push inflation. Between extended COVID unemployment when it wasn't needed to covid vax mandates to shutting down domestic oil supplies; everything he has done has harmed economic output.

      Delete
    2. I remember Pelosi way back when claiming that the government giving unemployed people more money will generate 2.5 dollars of economic activity for each dollar of unemployment. Never mind that it is just taking a dollar from the left pocket and putting it into the right pocket.

      Delete
    3. That's actually the "rationale" behind handing out "stimulus" money - that the "multiplier" (how much economic activity by dollar is generated by each stimulus dollar) is greater than 1.0. It's a religious belief (one of many) among leftists that it's not only greater than 1.0, but MUCH greater than 1.0.

      However, the few studies that have tried to look at that have concluded that the "multiplier" is more like 0.6 - in other words, it has negative overall economic impact.

      Always keep in mind that leftists are insular clowns, who really believe that the economy is based solely on "people spending money"...


      Delete
  3. Krugman was the comptroller of Enron. Enron . Ok?

    ReplyDelete
  4. First, that "the rich are getting richer, just look at the market" is a lot of Commie propaganda.

    Most people are in the market, whether they know it or not (401K, retirement account, anyone?).

    Second, this is, after all, the "Let 'em eat electric cars" crowd.

    They really are running on empty.

    ReplyDelete
    Replies
    1. Wonder how Jackson Browne is handling this? Prolly like his friend Brooce Shillstein. MAKIN MAJOR BANK by sellin out. Pathetic folks.

      Delete
    2. You know what that last word REALLY was.

      Delete
  5. There are times when inflation is good, however, it has nothing to do with fiscal issues.

    I’m sure My friend Mr. Hertz understands.

    As to Krugman, it looks like his inflated ego has sprung a leak.

    ReplyDelete
  6. I don't mean to be glib, but it's the 70s again. I was a kid in the 70s and I remember inflation. I can't imagine believing anything Paul Krugman has to say, or for that matter, the media in general. Try as they might to spin it, it is hurting people in the pocketbook. Try spinning that for long.

    ReplyDelete
    Replies
    1. They ate already spinning so hard, they could fly to the moon. Too bad we can't tap that to create electricity.

      Delete
  7. All Paul Krugman had to do wass look at the Fed's M1, M2 and M3 reports to see when inflation would occur, by how much and when it would subside. Like Kamala Harris, he doesn't want to be bothered by such mundane things.

    Government taxing and spending involves money that is already in circulation - it does not create money with no corresponding output. Borrowing involves money that is already in circulation.

    ReplyDelete
  8. Look for AOC to promote a $20 federal minimum wage.

    ReplyDelete
  9. FACT: Biden has yet to create a single new job. There are still 4 million people employed today than pre-pandemic. FACT: Gasoline prices dropping 1% or 2% is not a victory until, like jobs, we see them drop over a dollar first.
    FACT: Unemployment dropping to 4.8% is not a victory until they drop below Trump's 3.6%
    FACT: Household income rising 5% isn't a victory until inflation drops below 5%.
    Future FACT: Biden will tout a drop in inflation to 6% as a victory.

    ReplyDelete
  10. If you're LEFT, or denying reality, or just so great a fan of the democrat party and its agenda that you have to shove your head so high into your own backside to see the sunshine down your own throat when you open your mouth; you have no business opening your pie hole to spout your drivel. SAVE IT. We people with real brains that work are NEVER going to listen to you unless we need a belly laugh.

    ReplyDelete
  11. It is absolutely insane to think that wage increases are going keep up with price increases. Business cannot afford to increase wages that much. Inflation is a dishonest, back-door way to finance massive social spending (with the intent of buying short term votes but setting up for long term catastrophe).

    ReplyDelete
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  13. I like inflation. Its not because it's good, it's not it hurts the average Joe more than rich people.
    I like it because big Government need money. They can print or tax us with systems like the income tax, which is the most unfair and hidden system possible.
    A honest government system would pay for itself and then take the money from everyone out in the open for all to see. Now, for the first time in a long time, we all get to pay and we all are pissed off.
    Perfect.
    We should be pissed. Now don't vote for the same looses.

    ReplyDelete
  14. I don't try to compare my situation to that of others. I only concern me with my personal situation. When I was young, I was concerned about a similar economy. I told my father I had to buy a home while I could still afford one. He told me to relax, "It's a bubble. Bubbles burst. Put your money in the bank and wait for the bubble to burst." The bubble burst in 1990 for me. My fiance and I purchased a home for $160,000 that had gone on the market at $235,000. We paid four points to get a 9 1/2% mortgage, but were able to refinance a couple times so that my mortgage is 4.25%. My pay is 4x what it was when I bought that house.

    Inflation benefits borrowers and penalizes savers. INVEST when inflation is high. Buy a home. Buy companies (stocks).

    You'll be fine.

    ReplyDelete
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    ReplyDelete
  18. You want to end inflation? End everyone's COLAs. Make the bureaucrats suffer inflation first-hand.
    -------------
    Got a link to the place selling you that stuff you're smoking? LOL.
    I'd rather see all government employees pay a 50% tax for the honor of serving Americans.
    It'd be nice if a bunch quit, but most are so useless even the sheriffs office wouldn't put them in with the people picking up litter on the side of the highway.

    ReplyDelete
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