- 23 Apr 2022 15:22
#15223733
Well Bluto, as I read this reply you had zero to say about the wisdom of causing a recession to stop inflation. AFAIK, this inflation is much like the inflation of the 70s which was caused by OPEC raising the price of oil by 100% IIRC once than then later by lot but not 100%.
. . . There was no way for corps to not raise their prices when OPEC made their costs go up that much. And oil is in or moves everything.
Today, prices are up again because OPEC and the war in Ukraine have increased the world's price of oil. Also, the free market is doing its job of raising prices when there are shortages of things, so that the rich can buy them and the poor can't. Also, there are droughts and floods that are reducing the supply of food. And also, because the US has failed to enforce the anti-trust laws so now many industries are controlled by 1 or a very few corps that have monopoly pricing power.
. . . Raising interest rates now will lead to another bout of stagflation. It will not stop price increases.
Your reply addresses zero of these points.
To reply to one of your points. Rents are going up a lot, maybe 20% a year. American workers can't compete with Asia workers on price. American workers have to rent a place to live and buy food to eat. Right now they can't afford both. Putting them out of work is only going to cause mass poverty. And raising interest rates is intended to put many out of work. That is how it is intended to reduce inflation.
. . . And it will not stop inflation but will cause stagflation.
.
Only ending the shortages will do that.
BlutoSays wrote:If you tell a business it needs to hire five people to push a broom, where one will actually do the trick (like unions do), that's inefficient. That's a burden on the business imposed by outside forces.
All your diatribes ignore the reality of the global economy we are in today and competition from it. Hell, I don't think democrats even know HOW to think that way.
"It is like the economic system had picked up a factory and dropped it into the ocean where it can't be recovered."
Kind of like democrats do everyday through their feel good regulations, overtaxation and random proclamations from ivory towers, because they've never had to meet a business payroll themselves and never link their actions to job loss. They just think the rich will absorb every hit. It's downright nutty. Washington DC has far too many inept lawyers and far too few legislators that have any other skill sets.
"IMO, this policy is not legal in that the constitution requires the president to "faithfully enforce the laws of the nation. It doesn't give the president the power to pick and choose which laws to enforce."
Yeah? Really? Maybe Joe Biden should apply that concept at the U.S./Mexico border.
Well Bluto, as I read this reply you had zero to say about the wisdom of causing a recession to stop inflation. AFAIK, this inflation is much like the inflation of the 70s which was caused by OPEC raising the price of oil by 100% IIRC once than then later by lot but not 100%.
. . . There was no way for corps to not raise their prices when OPEC made their costs go up that much. And oil is in or moves everything.
Today, prices are up again because OPEC and the war in Ukraine have increased the world's price of oil. Also, the free market is doing its job of raising prices when there are shortages of things, so that the rich can buy them and the poor can't. Also, there are droughts and floods that are reducing the supply of food. And also, because the US has failed to enforce the anti-trust laws so now many industries are controlled by 1 or a very few corps that have monopoly pricing power.
. . . Raising interest rates now will lead to another bout of stagflation. It will not stop price increases.
Your reply addresses zero of these points.
To reply to one of your points. Rents are going up a lot, maybe 20% a year. American workers can't compete with Asia workers on price. American workers have to rent a place to live and buy food to eat. Right now they can't afford both. Putting them out of work is only going to cause mass poverty. And raising interest rates is intended to put many out of work. That is how it is intended to reduce inflation.
. . . And it will not stop inflation but will cause stagflation.
.
Only ending the shortages will do that.