Oh no, you’re back to YouTube again. One step forward, one step back. That’s the story of your life.
Trump urges GOP to let catastrophic debt default happen if Dems don’t accept cuts
Posts
Total:
346
@@@@@Iwannaroosevelt
Because if prices didn’t go up we could have deflation which would kill the economy and GDP growth.
Deflation would kill the economy? No. It would just mean that people would be able to buy more things. This is the opposite of inflation, where people can buy less things.
Of course, too high deflation is not desirable. However, something like 1-2 % deflation rate would be just fine.
What we know for sure is that 5% inflation rate in 20 years will literally double the cost of living.
The wages dont grow that fast.
-->
@Best.Korea
Correct. Small amounts of inflation or deflation is the desired goal.
-->
@Greyparrot
Deflation is always bad
Deflation is worse than inflation because deflation is an indication that the economy is not growing. The prices of goods and services fall down due to low demand in the market. This results in companies reducing their production which will lead to reduction in employee salaries and layoffs.
-->
@Best.Korea
No economist in the world agrees with you
-->
@Vegasgiants
The prices of goods and services fall down due to low demand in the market.
Or due to increase in competition or due to increase in production or due to decrease in money supply.
Only when deflation is too high is when you are supposed to print money to help buisnesses.
However, currently, USA has 5% inflation rate and is trying to print more money to have even more inflation.
5% inflation rate is not sustainable unless you want to double the poverty rate in 20 years.
-->
@Best.Korea
There us no economist in America that agrees with you
Dude that is laughable
-->
@Vegasgiants
Well then, keep printing
💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵💵
What could go wrong? Except the inflation of course.
-->
@Best.Korea
Inflation is falling
-->
@Vegasgiants
There us no economist in America that agrees with you
There are quite a few economists who believe that a small amount of deflation, especially during this inflationary cycle, can be beneficial for an economy. Most of these economists say that mild deflation can lead to positive outcomes like increased purchasing power, more comptritiveness, and tighter price stability, and it's also beneficial for CPI as people gaine more bang for the buck.
One notable economist who supports a "mild" deflation is Prof. Robert J. Barro (a Harvard dude), a prominent American economist. He suggests that a low and stable deflation rate, accompanied by nominal wage flexibility, can promote economic efficiency and encourage productivity gains. Barro argues that mild deflation can provide an incentive for individuals to save, invest, and make more efficient consumption choices.
The current fed rate hikes are also designed to deflate the amount of money in circulation and increase the value of money.
The Debt/GDP ratio after WW2 was 113%. Eisenhower had a 92% top tax rate to pay off this debt.
The Debt/GDP ratio is now 128% and Trump cut the top tax rate to save himself some money.
Actually, Putin told him to do it.
-->
@Vegasgiants
Yet the prices are increasing.
-->
@Greyparrot
Odd....I don't see a quote from him. Loo
-->
@Best.Korea
As they have forever. Lol
-->
@Vegasgiants
As they have forever
As? I dont think we always had 5% inflation rate. There were times when we had 2%.
But yes, keep printing money. Then you will have even more inflation, which is good by your standard.
Inflation only benefits the rich by the way.
-->
@Best.Korea
But we are printing money and inflation is falling
Why?
-->
@Best.Korea
Inflation only benefits the rich by the way
Correct as poor people who usually pay no taxes have to pay the invisible tax of inflation.
-->
@Greyparrot
Which we have always had
I don't think we always had 5% inflation rate..
Correct
-->
@Greyparrot
It was over 15% in the 1970s.....when we had much less debt
-->
@Vegasgiants
But we are printing money and inflation is fallingWhy?
Keep printing to find out.
-->
@Best.Korea
Been working great for decades
-->
@Vegasgiants
It was over 15% in the 1970s.....when we had much less debt
The Bane of Carter is also Biden's fate.
-->
@Greyparrot
I guess it wasn't the debt. Lol
-->
@Vegasgiants
If the fed rate is high enough, it counters the surplus dollars added with borrowing at the cost of triggering a recession.
The fed rate now is only at 5 percent so it's having a pretty small effect on inflation but it is helping.
The Fed, then, can bring down inflation “only when public debt can be successfully stabilized by credible future fiscal plans,”
-->
@Greyparrot
Unrelated to the debt
-->
@Vegasgiants
Do you even read links or is your go-to response to everything : "lalalala I am not listnin"?
-->
@Greyparrot
The fed is bringing down inflation NOW. LOL
Public debt is stabilized by raising the debt ceiling
The Bane of Carter is also Biden's fate.
Inflation and Unemployment were high under Reagan.
He inherited rising inflation and the FED responded with raising interest rates. Sound familiar?
It will be high after Biden leaves office as well.