ajax18 wrote: ↑Wed Dec 15, 2021 2:28 pm
Res Ipsa wrote: ↑Tue Dec 14, 2021 9:30 pm
One thing to be said for the Chicago school economists is that they are consistent.
I think it would be interesting to read a monetarist analysis of how the fed was able to keep interest rates so low for so long without the economy overheating and inflation rising. I’m guessing part of the explanation would be the trade deficit, which gave American consumers lots of cheap goods to buy. But an interesting part might be the velocity of money. The country has accumulated an enormous amount of wealth since the days of Jimmy Carter. But the working and middle classes didn’t get much of a share. The spoils went to the wealthy, who spend a much lower percentage of their income. Had the working and middle classes shared in that increased wealth, more of the money would have been spent rather than accumulated, raising the velocity of money.
So, have we avoided inflation by simply making sure that the wealthy get all the increased wealth while working class folks have had their real income stagnate? And when the result of labor shortages allowing the folks at the bottom to get a piece of the pie is inflation, who will be forced to give up a share of pie?
Well I guess if you have enough to feed your family, you should not really be permitted to ask anything more from the economy. Better our children be born into perpetual debt and poverty than grandma die a year or two earlier because these selfish young people keep going to work. They have blood on their hands.
The global left trashed the world economy in the vain attempt to eradicate COVID to zero percent. The next excuse to stagnate the economy further will be the climate change crisis. And many people will vote for it because they believe the leftist lie that the government can do anything and everything for them. Whatever the problem, a government program is always the solution.
Ajax, you're still falling for the con. Let's go back to basics. Here's a pop quiz.
1) Which of the following is true? An exponential increase in real U.S. Gross Domestic Product over time is:
a) A totally reasonable expectation for the U.S. economy
b) My birthright as a natural born U.S. Citizen
c) God's reward for his favorite country
d) unsustainable absent unlimited resources and an exponentially growing population.
2) If the U.S. real GDP grows at 5% per cent per year, that growth rate would be:
a) A totally reasonable expectation for the U.S. economy.
b) My birthright as a nature born U.S. Citizen
c) God's reward for his favorite country.
d) linear
e) exponential
3) Over the last 70 years, the population of the United States has grown:
a) Exponentially
b) Less than exponentially
4) In terms of real GDP per person, the average American at the end of the 3rd quarter of 2021 is:
a) worse off than they were 10 years ago
b) worse off than they were 20 years ago
c) worse off than they were 30 years ago
d) worse off than they were 40 years ago
e) worse off than they were 50 years ago
f) worse off than they were 60 years ago
g) worse off than they were 70 years ago
h) better off than they have been at any time over the last 70 years