Bear Pit: now the sole domicile of politics at LuLa

[PeterAit]

Inflation caused by the The Fed printing and deficit spending by the government is doing away with the middle class. It's destroying what little wealth they have left. You're seeing it in real-time right now.

Claptrap. The middle class was eroding long before the current run of inflation. The inflation is making things worse to be sure, but it is not a major cause.

[Alan Klein]

Claptrap. The middle class was eroding long before the current run of inflation. The inflation is making things worse to be sure, but it is not a major cause.

The deficit didn;t just start with Covid, nor has the printing of money.  Between 1970 and 1982, inflation caused the dollar to drop in value by 60%.  So if you have $100,000 in cash in 1970, it would have had purchasing power of $40,000 by 1982.  Between 1982 and 2021, the value of the dollar has dropped another 65% so that original $100,000 would only be worth $14,000.
https://www.usinflationcalculator.com/

However, government printing helps the rich.  During Covid, the top 1% doubled their wealth.  Money printing raises the cost of assets like the stock market, real estate, commodities, artwork, pictures printed by Ansel Adams, etc.  The rich hold those assets so money printing helps them the most. The rest of us have to rely on our salaries which get reduced in value due to inflation.  Since the government reduced interest rates to practically 0%, you can't even make a few bucks from that anymore.  In the old days, banks would give you 3% plus a free toaster if you opened an account. Today, you can't even get a toaster.

Regular people have to work harder, make our wives work to make ends meet, and hope our daughters marry rich guys.  The middle class is being decimated by inflation and government deficit spending.  It turns out all that free stuff isn't so free after all.

[Robert Roaldi]

...
However, government printing helps the rich.  ...

Whoah man, slow down. You're sounding like a socialist there.

[Alan Klein]

Whoah man, slow down. You're sounding like a socialist there.

It is socialism.  Socialism for the rich. The government should not be in the business of handing out money to people.  Period. It's redistribution and wastes resources.  It doesn't matter who it goes to.  It's theft.  Inflation is a hidden tax on people's income and assets.

Now, watch how many corporations in the stock market go bankrupt when the recession (depression?) hits.  There are hundreds that have never earned a nickel yet their valuations are in the billions.   That's nuts.  It's all because of no-interest loans by the Fed and the printing.  It's artificially raised housing prices where young kids can't afford their first home.  That's wrong.  We're indebting our youngsters.  In America, we just passed $30 trillion in government debt.  That's just the Federal government; states are worse.  Many are bankrupt. 

[PeterAit]

... make our wives work to make ends meet, and hope our daughters marry rich guys.

Did you really say these things? Shame.

[Alan Klein]

Did you really say these things? Shame.

I was trying to make a point.  Years ago, many mothers stayed home to care for family and hearth and rear the kids. Husbands and fathers brought home the bacon.  Because of rising inflation and taxes, men could not make enough income to pay for family expenses.   So many women had to go to work and they became two-income families.  Children became latch-key kids who wondered around the street after school getting into trouble rather than home doing their homework.  Families suffered, kids do more poorly in school, and society is hurt. Divorces increased hurting families even more. We can argue about whether it's good or bad for women having to work. That's another discussion.  But the fact is inflation, government deficit spending, the decreasing value of money and higher taxes have left less take-home pay for families forcing both parents to work. 

[digitaldog]

Did you really say these things? Shame.

Like Trump: a racist and a misogynist. Shame indeed, there seems to be no bottom.

[LesPalenik]

However, government printing helps the rich. 

That is correct, but primarily it helps government to increase the tax revenue and to make the government even bigger.

[Alan Klein]

That is correct, but primarily it helps government to increase the tax revenue and to make the government even bigger.

The problem is that taxes have not been raised enough.  That's why we have $3 trillion in deficit the last year and have hit $30 trillion in debt.  While taxes go up somewhat especially because people are pushed into higher brackets and salaries go up, just like for people, the cost of everything goes up for the government as well.  So inflation hurts government spending too.  The government has to pay for higher gasoline prices for jets and trucks and tanks etc.  Government salaries go up.  Interest rates of government debt go up.  Eventually, inflation causes a recession as demand falls due to higher prices.  Sales declines, profits decline, jobs and income taxes decline. So they have to print more.  It's a terrible cycle. 

Pop.

[Chris Kern]

Just when the British Conservatives were drawing level, the Republicans seemingly up the stakes . . .

It's not an even contest.  While the Conservatives are ignoring the rules and slurping down G-and-Ts in Downing Street, the loopier Republicans are taking off their facemasks and mainlining ivermectin and hydroxychloroquine.

[Alan Klein]

It's not an even contest.  While the Conservatives are ignoring the rules and slurping down G-and-Ts in Downing Street, the loopier Republicans are taking off their facemasks and mainlining ivermectin and hydroxychloroquine.

Well, the British were always a bit strange.  Why doesn't someone buy the PM a comb?

[digitaldog]

Well, the British were always a bit strange.  Why doesn't someone buy the PM a comb?

At least he has hair (real hair) and doesn't wear orange makeup!

[Peter McLennan]

The problem is that taxes have not been raised enough.  That's why we have $3 trillion in deficit the last year and have hit $30 trillion in debt.  While taxes go up somewhat especially because people are pushed into higher brackets and salaries go up, just like for people, the cost of everything goes up for the government as well.  So inflation hurts government spending too.  The government has to pay for higher gasoline prices for jets and trucks and tanks etc.  Government salaries go up.  Interest rates of government debt go up.  Eventually, inflation causes a recession as demand falls due to higher prices.  Sales declines, profits decline, jobs and income taxes decline. So they have to print more.  It's a terrible cycle. 

Pop.

Alan, why don't you get a blog?  You can say whatever you like there, rather than bore us to death with your theories.  They're easy to implement and free.

https://www.blogger.com/dashboard/reading

[digitaldog]

You can say whatever you like there, rather than bore us to death with your theories. 

For the Einstein of stupidly theories:
"If the facts don't fit the theory, change the facts". -Albert Einstein
Exactly what so many on the right are doing with respect to Jan 6th and more.

[Alan Klein]

Alan, why don't you get a blog?  You can say whatever you like there, rather than bore us to death with your theories.  They're easy to implement and free.

https://www.blogger.com/dashboard/reading

Why are you always so rude?  You attack me rather than my ideas.  Don't you have any ideas of your own? 

[Robert Roaldi]

Why are you always so rude?  You attack me rather than my ideas.  Don't you have any ideas of your own?

Actually, I'd like to second that notion of starting your own economics blog. You seem to like lecturing us, why not expand your audience.

[digitaldog]

Why are you always so rude?  You attack me rather than my ideas. 

Your ideas are consistently stupid. That isn't to be rude, it is factual. That so many tell you this could be a sign, but you'll ignore your peers who nearly all tell you on a daily basis, your ideas are stupid, filled with assumptions and bias, without fact.
Don't take it personally. Sadly:
“No matter how smart you are, you can never convince someone stupid that they are stupid.”- Anonymous.

[Alan Klein]

Actually, I'd like to second that notion of starting your own economics blog. You seem to like lecturing us, why not expand your audience.

There you go again trying to shut down people whose views you disagree with.  If you disagree with my economic views, then state your own and let the readers decide what they want to believe.  If you don't think inflation, higher taxes, and deficit spending reduces spendable income, then what does? 

[PeterAit]

I was trying to make a point. 

You made your point quite well. Women are servants of their husbands and can be "made" to work when the hub demands it. And daughters are helpless maidens who need a man to support them. Again, shame.

[digitaldog]

You made your point quite well. Women are servants of their husbands and can be "made" to work when the hub demands it. And daughters are helpless maidens who need a man to support them. Again, shame.

Seems he's missed The Handmaid's Tale on Hulu (I didn't expect like myself, he read the book).
If only he could follow this one on the right in example <g>: