Joe Biden, Economy Killer

C

cancel2 2022

Canceled
Looks more and more like SloJo will preside over the mother of all recessions and an introduction to the world of stagflation.

Along with a working vaccine, Joe Biden inherited a V-shaped economic recovery, but he is now planting the seeds of its destruction. Inflation, federal deficits, high taxes, incentives for workers to stay home, and incentives to avoid investment – they’re all coming back. Together, these elements create the perfect brew for a Lyndon Johnson-style stagflation. If Biden and the Democrats so quickly wreck the good economic path they were given, it will be one of the worst examples of government malpractice in U.S. economic history.

In the first, dark days of the COVID-19 national economic shutdown last spring, there was a clear need for major stimulus. Both parties united to pass an effective and much-needed response.

The U.S. gross domestic product saw a 33.4% surge in the July-September third quarter of 2020, after plunging 31.4% in the April-June second quarter. The economy continued to grow at a 4% rate in the fourth quarter, and the stock market (despite COVID) ended 2020 with the S&P 500 index up 16% for the year as a whole.

Biden and the Democrats have since passed or proposed $6 trillion in additional stimulus spending – the $1.9 trillion “American Rescue Plan,” the $2.3 trillion “American Jobs Plan,” and the $1.8 trillion “American Families Plan.” As partial payment, corporate taxes are set to rise by one-third (from 21% to 28%). The top capital gains tax rates on investment are set to approximately double (from about 20% to about 40%). There is no relief for state and local tax expenses, which are also rising.

The extra stimulus is already beginning to show up in the form of inflation – too much money chasing too few goods. “We are seeing substantial inflation,” Warren Buffett declared at his annual shareholders meeting. “We are raising prices. People are raising prices to us, and it’s being accepted.”
Other CEOs are reporting the same facts. According to Bank of America’s Savita Subramanian, the number of mentions of “inflation” in shareholder earnings calls has tripled year over year, the biggest jump since 2004. “Inflation is arguably the biggest topic during this earnings season, with a broad array of sectors (consumer/industrials/materials, etc.) citing inflation,” Subramanian has said. Such mentions generally lead the consumer price index by a quarter or two.

https://www.realclearpolitics.com/articles/2021/05/07/joe_biden_economy_killer_145718.html#!
 
So a why is farang brit living in Thailand, who never lived or has any connections to the United States posting as what happens in America as if he is part of America?
 
Primavera said:
Looks more and more like SloJo will preside over the mother of all recessions and an introduction to the world of stagflation.

Along with a working vaccine, Joe Biden inherited a V-shaped economic recovery, but he is now planting the seeds of its destruction. Inflation, federal deficits, high taxes, incentives for workers to stay home, and incentives to avoid investment – they’re all coming back. Together, these elements create the perfect brew for a Lyndon Johnson-style stagflation. If Biden and the Democrats so quickly wreck the good economic path they were given, it will be one of the worst examples of government malpractice in U.S. economic history.

In the first, dark days of the COVID-19 national economic shutdown last spring, there was a clear need for major stimulus. Both parties united to pass an effective and much-needed response.

The U.S. gross domestic product saw a 33.4% surge in the July-September third quarter of 2020, after plunging 31.4% in the April-June second quarter. The economy continued to grow at a 4% rate in the fourth quarter, and the stock market (despite COVID) ended 2020 with the S&P 500 index up 16% for the year as a whole.

Biden and the Democrats have since passed or proposed $6 trillion in additional stimulus spending – the $1.9 trillion “American Rescue Plan,” the $2.3 trillion “American Jobs Plan,” and the $1.8 trillion “American Families Plan.” As partial payment, corporate taxes are set to rise by one-third (from 21% to 28%). The top capital gains tax rates on investment are set to approximately double (from about 20% to about 40%). There is no relief for state and local tax expenses, which are also rising.

The extra stimulus is already beginning to show up in the form of inflation – too much money chasing too few goods. “We are seeing substantial inflation,” Warren Buffett declared at his annual shareholders meeting. “We are raising prices. People are raising prices to us, and it’s being accepted.”
Other CEOs are reporting the same facts. According to Bank of America’s Savita Subramanian, the number of mentions of “inflation” in shareholder earnings calls has tripled year over year, the biggest jump since 2004. “Inflation is arguably the biggest topic during this earnings season, with a broad array of sectors (consumer/industrials/materials, etc.) citing inflation,” Subramanian has said. Such mentions generally lead the consumer price index by a quarter or two.

https://www.realclearpolitics.com/articles/2021/05/07/joe_biden_economy_killer_145718.html#!
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god, what bullshit. a person with an IQ would laugh at such obvious right wing spin. for instance, take this phrase, as used in the bullshit article-

Biden and the Democrats have since passed or proposed $6 trillion in additional stimulus spending – the $1.9 trillion “American Rescue Plan,” the $2.3 trillion “American Jobs Plan,” and the $1.8 trillion “American Families Plan.”

So, JUST PROPOSING an expensive spending plan screws the economy!! yes, the 1.9 trillion dollar covid rescue plan actually passed, but it was needed by so many NON-RICH Americans to help cope with the affects of having trump as president when a pandemic hit us. and it is about the same amount of debt trump's tax plan for the rich generated, and it did not do shit for anyone but the rich.

Inflation has nothing to do with the 1.9 trillion dollar rescue plan, only an idiotic right wing liar would say that. after we started coming out of the trump-covid recession, lots of staples were in short supply due to trump letting covid fuck our economy into the ground. then, when we did recover, and more demand occurred after 9 months of no activity, of course prices rose for these staples in such low supply...duh!!

imagine even a dumbshit right wing source trying to cast aspersions on the economy under LBJ- he actually had a surplus his last year if office, despite the vietnam war, the medicare costs, the social safety net being funded more fairly....

https://twitter.com/x/status/1416429831538069506
 
The extra stimulus is already beginning to show up in the form of inflation – too much money chasing too few goods. “We are seeing substantial inflation,” Warren Buffett declared at his annual shareholders meeting. “We are raising prices. People are raising prices to us, and it’s being accepted.”
Other CEOs are reporting the same facts. According to Bank of America’s Savita Subramanian, the number of mentions of “inflation” in shareholder earnings calls has tripled year over year, the biggest jump since 2004. “Inflation is arguably the biggest topic during this earnings season, with a broad array of sectors (consumer/industrials/materials, etc.) citing inflation,” Subramanian has said. Such mentions generally lead the consumer price index by a quarter or two.
Click to expand...
i hope this is incorrect, but Biden wants to spend like a dozen drunken sailors
 
dukkha said:
i hope this is incorrect, but Biden wants to spend like a dozen drunken sailors
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ike eisenhower spent 1/5th of an annual budget to developing the Interstate Highway System. it was well worth it. we have major infrastructure problems in this country and it costs billions to fix. but it also creates new jobs, more tax revenue and is worth the cost. compare that to tax cuts for the rich that have no real benefit except for the rich, and cost about the same in reduced tax revenue.
 
Americans almost to the last man/woman/whatever have no clue of the Hell that is coming fast.

Buckle Up!
 
Primavera said:
I can't help feeling that everybody will know about stagflation soon enough.
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well it's like this. Biden hasn't got any tax hikes in yet, but both sides did a whole load of COVID relief
Im pretty sure one of these monstrosities will get thru - infrazstructure most likely ( even though only 10% of the money is allocated to infrazstructure) .then he owns the economy.
That's gonna cause capital flight ( retarding job growth) along with what is inevitable inflation = stagflation
 
dukkha said:
well it's like this. Biden hasn't got any tax hikes in yet, but both sides did a whole load of COVID relief
Im pretty sure one of these monstrosities will get thru - infrazstructure most likely ( even though only 10% of the money is allocated to infrazstructure) .then he owns the economy.
That's gonna cause capital flight ( retarding job growth) along with what is inevitable inflation = stagflation
Click to expand...

Appreciate your input, man.
 
dukkha said:
well it's like this. Biden hasn't got any tax hikes in yet, but both sides did a whole load of COVID relief
Im pretty sure one of these monstrosities will get thru - infrazstructure most likely ( even though only 10% of the money is allocated to infrazstructure) .then he owns the economy.
That's gonna cause capital flight ( retarding job growth) along with what is inevitable inflation = stagflation
Click to expand...

The first stimulus was necessary but here’s the point: the country should have been opened up much sooner than it was. That would made the following stimulus unnecessary, got more people working sooner and spared us some of the pain that is almost certainly coming. ANY further trillion dollar spending packages is going to seal the deal on inflation and ensure that it’s not short term.

The infrastructure bill should absolutely be whittled down to JUST monies allocated for roads, bridges, power grid—actual infrastructure stuff, but it’s hard to tell what these clowns will pack into it.

And yup, after it passes Biden will own the economy. Enjoy your two years, democrats.
 
Primavera said:
Looks more and more like SloJo will preside over the mother of all recessions and an introduction to the world of stagflation.

Along with a working vaccine, Joe Biden inherited a V-shaped economic recovery, but he is now planting the seeds of its destruction. Inflation, federal deficits, high taxes, incentives for workers to stay home, and incentives to avoid investment – they’re all coming back. Together, these elements create the perfect brew for a Lyndon Johnson-style stagflation. If Biden and the Democrats so quickly wreck the good economic path they were given, it will be one of the worst examples of government malpractice in U.S. economic history.

In the first, dark days of the COVID-19 national economic shutdown last spring, there was a clear need for major stimulus. Both parties united to pass an effective and much-needed response.

The U.S. gross domestic product saw a 33.4% surge in the July-September third quarter of 2020, after plunging 31.4% in the April-June second quarter. The economy continued to grow at a 4% rate in the fourth quarter, and the stock market (despite COVID) ended 2020 with the S&P 500 index up 16% for the year as a whole.

Biden and the Democrats have since passed or proposed $6 trillion in additional stimulus spending – the $1.9 trillion “American Rescue Plan,” the $2.3 trillion “American Jobs Plan,” and the $1.8 trillion “American Families Plan.” As partial payment, corporate taxes are set to rise by one-third (from 21% to 28%). The top capital gains tax rates on investment are set to approximately double (from about 20% to about 40%). There is no relief for state and local tax expenses, which are also rising.

The extra stimulus is already beginning to show up in the form of inflation – too much money chasing too few goods. “We are seeing substantial inflation,” Warren Buffett declared at his annual shareholders meeting. “We are raising prices. People are raising prices to us, and it’s being accepted.”
Other CEOs are reporting the same facts. According to Bank of America’s Savita Subramanian, the number of mentions of “inflation” in shareholder earnings calls has tripled year over year, the biggest jump since 2004. “Inflation is arguably the biggest topic during this earnings season, with a broad array of sectors (consumer/industrials/materials, etc.) citing inflation,” Subramanian has said. Such mentions generally lead the consumer price index by a quarter or two.

https://www.realclearpolitics.com/articles/2021/05/07/joe_biden_economy_killer_145718.html#!
Click to expand...

?????.....stagflation is the exact opposite of inflation......
 
guno said:
So a why is farang brit living in Thailand, who never lived or has any connections to the United States posting as what happens in America as if he is part of America?
Click to expand...

why is a bigoted and racist troll who has proved he hates everything the US stands for posting about what happens in America as if he is a part of America?....
 
PostmodernProphet said:
?????.....stagflation is the exact opposite of inflation......
Click to expand...


Stagflation
Understanding Stagflation
The term "stagflation" was first used during a time of economic stress in the United Kingdom by politician Iain Macleod in the 1960s while he was speaking in the House of Commons. At the time, he was speaking about inflation on one side and stagnation on the other, calling it a "stagnation situation." It was later used again to describe the recessionary period in the 1970s following the oil crisis, when the U.S. underwent a recession that saw five quarters of negative GDP growth.1 Inflation doubled in 1973 and hit double digits in 1974; unemployment hit 9% by May 1975.2 3

Stagflation led to the emergence of the Misery index. This index, which is the simple sum of the inflation rate and unemployment rate, served as a tool to show just how badly people were feeling when stagflation hit the economy.

Stagflation was long believed to be impossible because the economic theories that dominated academic and policy circles ruled it out of their models by construction. In particular, the economic theory of the Phillips Curve, which developed in the context of Keynesian economics, portrayed macroeconomic policy as a trade-off between unemployment and inflation. As a result of the Great Depression and the ascendance of Keynesian economics in the 20th-century economists became preoccupied with the dangers of deflation and argued that most policies designed to lower inflation tend to make it tougher for the unemployed, and policies designed to ease unemployment raise inflation.

The advent of stagflation across the developed world in the mid-20th century showed that this was actually not the case. As it result, stagflation is a great example of how real-world economic data can sometimes run roughshod over widely accepted economic theories and policy prescriptions.

Since that time, as a rule, inflation persists as a general condition even during periods of slow or negative economic growth. In the past 50 years, every declared recession in the U.S. has seen a continuous, year-over-year rise in the consumer price level.4 The sole, partial exception to this is the lowest point of the 2008 financial crisis—and even then price decline was confined to energy prices while overall consumer prices other than energy continued to rise.

Special Considerations
Theories on the Causes of Stagflation
Because the historical onset of stagflation represents the great failure of the dominant economic theories of the time, economists since then have put forth several arguments as to how stagflation occurs or how to redefine the terms of existing theories in order explain around it.

One theory states that this economic phenomenon is caused when a sudden increase in the cost of oil reduces an economy's productive capacity. In October 1973, the Organization of Petroleum Exporting Countries (OPEC) issued an embargo against Western countries. 1 This caused the global price of oil to rise dramatically, therefore increasing the costs of goods and contributing to a rise in unemployment. Because transportation costs rise, producing products and getting them to shelves got more expensive and prices rose even as people got laid off. Critics of this theory point out that sudden oil price shocks like those of the 1970s did not occur in connection with any of the simultaneous periods of inflation and recession that have occurred since then.

Another theory is that the confluence of stagnation and inflation are results of poorly made economic policy. Harsh regulation of markets, goods, and labor in an otherwise inflationary environment are cited as the possible cause of stagflation. Some point fingers to the policies set in place by former President Richard Nixon, which may have led to the recession of 1970—a possible precursor to the period of stagflation. Nixon put tariffs on imports and froze wages and prices for 90 days, in an effort to prevent prices from rising. The sudden economic shock of oil shortages and rapid acceleration of prices once the controls where relaxed led to economic chaos. While appealing, like the previous theory this is basically an ad-hoc explanation of the stagflation of the 1970s, which does not explain the simultaneous rise in prices and unemployment that has accompanied subsequent recessions up to the present.

Stagflation and the Gold Standard
Other theories point to monetary factors that may also play a role in stagflation. Nixon removed the last indirect vestiges of the gold standard and brought down the Bretton Woods system of international finance. 5 This removed commodity backing for the currency and put the U.S. dollar and most other world currencies on a fiat basis ever since then, ending most practical constraint on the monetary expansion and currency devaluation. As support for their theories, proponents of monetary explanations of stagflation point to this event, as well as the historical record of simultaneous inflation and unemployment in fiat money-based economies, and the countervailing historical record of extended periods of simultaneously decreasing prices and low unemployment under strong commodity back currency systems. This would suggest that under an unbacked fiat monetary system in place since the 1970s, we should actually expect to see inflation persist during periods of economic stagnation as has indeed been the case.

Other economists, even prior to the 1970s, criticized the idea of a stable relationship between inflation and unemployment on the grounds of consumer and producer expectations about the rate of inflation. In these theories, people simply adjust their economic behavior to rising price levels either in reaction to or in expectation of monetary policy changes. As a result, prices rise throughout the economy in response to expansionary monetary policy, without any corresponding decrease in unemployment, and unemployment rates can rise or fall based on real economic shocks to the economy. This implies that attempts to stimulate the economy during recessions could simply inflate prices while having little effect on promoting real economic growth.

Urbanist and author Jane Jacobs saw the disagreements between economists on why the stagflation of the ‘70s occurred in the first place as a symptom of misplacing their scholarly focus on the nation as the primary economic engine as opposed to the city. It was her belief that in order to avoid the phenomenon of stagflation, a country needed to provide an incentive to develop "import-replacing cities" — that is, cities that balance import with production. This idea, essentially diversifying the economies of cities, was critiqued for its lack of scholarship by some, but held weight with others.

The de facto consensus on stagflation among most economists, financiers, and policymakers has been to essentially redefine what they mean by the term “inflation” in the modern era of modern currency and financial systems. Persistently rising price levels and falling purchasing power of money—i.e. inflation—are just assumed as a basic, background, normal condition in the economy, which occurs both during periods of economic expansion as well as during recessions. Economists and policymakers generally assume that prices will rise, and largely focus accelerating and decelerating inflation rather than inflation itself. The dramatic episodes of stagflation in the 1970s may be a historical footnote today, but since then simultaneous economic stagnation and rising price levels in a sense make up the new normal during economic downturns.

https://www.investopedia.com/terms/s/stagflation.asp
 
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