racer254 Posted July 16, 2021 Share Posted July 16, 2021 (edited) The timing could hardly have been better. Just as Democrats roll out their massive, partisan $3.5 trillion spending package, a mammoth bill that comes on top of all normal spending and seemingly countless trillions in COVID relief money under Presidents Donald Trump and Joe Biden, a new economic report shows inflation spiking to alarming levels. According to the Labor Department, consumer prices jumped 5.4% year over year after their largest monthly gain in 13 years. Bad as that is, it gets worse. Economists often measure inflation, excluding energy and food prices because these tend to ride volatile and unpredictable commodities markets up and down. But by that measure, inflation is rising at its fastest clip in 30 years. Inflation is bad for consumers and savers because it makes today’s dollars less valuable than yesterday’s. It punishes those who behave responsibly with their money. Although some investments can protect against inflation, especially commodities, stocks, and leveraged real estate, this does not help workers who can't afford as much with their wages. The Trump era was remarkable because, for the first time in modern memory, it produced real wage gains for lowly workers. Inflation is now undoing that progress. Thanks to inflation, real average hourly earnings fell by 0.5% in June. As further confirmation of the inflation problem, on Wednesday, the Bureau of Labor Statistics separately reported that the Producer Price Index, another measure of inflation, soared 7.3% year over year. Why is inflation so out of control? Most blame must go to the government. As round after round of COVID relief was passed by both parties with scant consideration, we warned that government was sending money to chase goods and services that, because of pandemic lockdowns, were no longer being produced in such great numbers. This is the definition of inflation, a growth in the money supply that exceeds growth in the value of goods and services available for purchase. The United States is also suffering an inflationary labor shortage, thanks largely to the Biden administration’s misuse of supplemental federal unemployment funds to create perverse incentives. Because workers can make more money by collecting benefits through August than by returning to lower-wage jobs, productivity lags while Washington pumps more money into the market, whether it be borrowed government funds or lavish bonuses companies are forced to pay to get fast-food workers to show up consistently for a few months. The last thing needed now is the Democrats’ proposed $3.5 trillion reconciliation package, a bill that costs more by itself than all combined federal revenues from last year. It is stuffed with irrelevant far-left policies that couldn’t survive politically in a national infrastructure package. It includes such gems as a massive expansion of a Medicare program that is already going bust. Despite their zero-margin control of the Senate, Democrats are governing as though voters had given them a massive majority that justified dispensing with negotiation and bipartisanship. In an inflationary economy, they want to borrow and spend even more money for ideological goals that are irrelevant at best and damaging at worst to the vigorous economic recovery that Biden inherited upon taking office. https://www.washingtonexaminer.com/opinion/editorials/bidenflation-is-real-and-democrats-will-make-it-worse Biden took over an economy well on its way to complete recovery, with vaccines available and already being administered. But he is blowing it. Edited July 16, 2021 by racer254 Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted July 16, 2021 Platinum Contributing Member Share Posted July 16, 2021 Biden wants federal spending at $8.2 trillion by 2031. 1 Quote Link to comment Share on other sites More sharing options...
motonoggin Posted July 16, 2021 Share Posted July 16, 2021 Money is a social construct, nerd. Communism will prevail. Quote Link to comment Share on other sites More sharing options...
racer254 Posted July 16, 2021 Author Share Posted July 16, 2021 Woo hoo, gas is now over 3 dollars everywhere Quote Link to comment Share on other sites More sharing options...
irv Posted July 16, 2021 Share Posted July 16, 2021 6 minutes ago, racer254 said: Woo hoo, gas is now over 3 dollars everywhere Currently around a $1.40, or just under that around my neck of the woods. 4.5 Liters per Imperial gallon=$6.30 an Imperial gallon or $5.25 U.S, a gallon. 1 Quote Link to comment Share on other sites More sharing options...
Guest Posted July 16, 2021 Share Posted July 16, 2021 What Biden is doing is so fukkin bad, I hope we don't go into a depression or financial emergency. See, he had the MINORITY VOTES behind him, that got him the presidency. Now, he's gone absolutely crazy. Sonofabitch. 330 million Americans, and look who we get for presidents! Quote Link to comment Share on other sites More sharing options...
Ez ryder Posted July 16, 2021 Share Posted July 16, 2021 2 hours ago, motonoggin said: Money is a social construct, nerd. Communism will prevail. Works out great every place it has been put in place. Oh wait this is the real world Quote Link to comment Share on other sites More sharing options...
Mainecat Posted July 16, 2021 Share Posted July 16, 2021 Spend some of that cash you all have been swaggering about that you said Trump earned you in the fake market. Inflation has been on the rise for a year. Quote Link to comment Share on other sites More sharing options...
Ez ryder Posted July 16, 2021 Share Posted July 16, 2021 Just now, Mainecat said: Spend some of that cash you all have been swaggering about that you said Trump earned you in the fake market. Inflation has been on the rise for a year. Thanks Biden Quote Link to comment Share on other sites More sharing options...
Sleepr2 Posted July 17, 2021 Share Posted July 17, 2021 4 hours ago, Mainecat said: Spend some of that cash you all have been swaggering about that you said Trump earned you in the fake market. Inflation has been on the rise for a year. Says the tax dodger 1 Quote Link to comment Share on other sites More sharing options...
Ez ryder Posted July 17, 2021 Share Posted July 17, 2021 Also not sure where this bullshit 5 3 is from . Everything I buy is at least 10% and some 30 to 300% more money than last yr Quote Link to comment Share on other sites More sharing options...
Carlos Danger Posted July 17, 2021 Share Posted July 17, 2021 Biden has brought back talk of the misery index. Quote Link to comment Share on other sites More sharing options...
Guest Posted July 17, 2021 Share Posted July 17, 2021 This fukkin country is NEVER stable!! It's either DOT COMS failing, or STOCK MARKET TANKING, or REAL ESTATE Tanking, or Recession, or Inflation, or some fucking thing always ruining our lives. This country sucks. OK, maybe it's just me, but I think this country sucks. Quote Link to comment Share on other sites More sharing options...
Mainecat Posted July 17, 2021 Share Posted July 17, 2021 https://apnews.com/article/business-health-stock-markets-coronavirus-pandemic-economy-41950cd24fb71166030bbb7da65e76e7 Quote Link to comment Share on other sites More sharing options...
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