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Good news for American economy

Discussion in 'Current Events' started by pearl, Jan 21, 2022.

  1. pearl

    pearl Well-Known Member

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  2. F1fan

    F1fan Well-Known Member

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    The US economy is growing at 5.5%. Unemployment is at 3.9%. This is the best of all other Western nations. The fast growing economy is one reason there is inflation, so much demand for products and supplies.
     
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  3. Revoltingest

    Revoltingest Abnormal before it was fashionable
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    How much is actual economic growth, vs how
    much is inflation (ie, currency devaluation resulting
    in dollar price increases & more dollars being spent?
     
  4. The Hammer

    The Hammer Corporate Board Stooge
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    Isn't this what stimulates the economy, inflation or not, spending?
     
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  5. Revoltingest

    Revoltingest Abnormal before it was fashionable
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    Let's say that...
    In 1970, I spent $100 on a widget.
    There's 7% inflation for a decade.
    In 1980, I spent $200 on another widget.

    $100 (1970) is economically equal to $200 (1980).
    Is that an increase in the economy?
    Or is it an increase in the number of dollars
    required for the same economic activity?
     
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  6. sayak83

    sayak83 Veteran Member
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    Growth is usually reported as inflation adjusted, though the base year level has to be taken into account.
     
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  7. sun rise

    sun rise "This is the Hour of God"
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    And it's important not to consider inflation in the US in isolation given that it's a world-wide phenomenon Here's how rising inflation is affecting us around the world

    I can read the WSJ due to my local library! This is what that far left wing outlet had to say:

    What is causing inflation right now?

    The current bout of inflation has several identified causes, many of them linked to the pandemic. For one, consumers are flush with savings from government stimulus programs and depressed services spending from restrictions on businesses, leading them to open the spigot for goods that are in scarce supply.

    There also are fewer workers in the labor market, encouraging those who are working to demand raises and crimping overall productivity. These factors and many others are driving up costs.

    Energy prices, including gasoline, have gone up as oil-and-gas production lags behind a return of consumer demand coming out of the pandemic. This return of demand has also led to supply-chain disruptions. Truck drivers, seaport slots and warehouse spaces are all in short supply, leading to costly delays and rising shipping rates for goods.

    These added costs, at every step from production to sale, lead to price increases for consumers, with some companies seizing on a rare opportunity to raise prices.
     
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  8. F1fan

    F1fan Well-Known Member

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    More demand will cause higher prices. A better economy will mean higher demand.

    Of course those in the lower economic strata will not see the benefits as much as the middle class. The rich? They are doing so well that their net worth on average increased dramatically during the pandemic. The haves know how to exploit need and make profits. The rest of us scramble to make ends meet. And that is the squirrel cage we want.
     
  9. F1fan

    F1fan Well-Known Member

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    Or you can buy a better widget in 1980 for $90 because widgets are in such high demand that production costs are lower. And they are made in China with lower labor costs, thus you save.

    A VCR in 1978 was about $900. Ten years later they were a fraction of that price with better features.
     
  10. Revoltingest

    Revoltingest Abnormal before it was fashionable
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    The rate of inflation (currency devaluation) can vary greatly
    around the world. So being a common phenomenon around
    the world doesn't mean it can be ignored. Even Ameristan's
    lower rate has significant consequences to us.
    One comparison...
    [​IMG]
    Ref...
    Inflation rates in Zimbabwe

    Inflation is a natural consequence of recent large increases
    in deficit spending. To cite other causes doesn't mean the
    dollar hasn't lost value due to monetary expansion faster
    than economic expansion.
     
  11. Revoltingest

    Revoltingest Abnormal before it was fashionable
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    While true, that's not the only factor contributing to inflation.
    Looking at the extreme example of Zimbabwe, that clearly
    cannot be explained by supply & demand.
    Lower earners might have an advantage over the middle
    class regarding inflation due to taxation. Marginal income
    tax bracket creep is less, the lower one's wage is.
    The wealthy are generally more sophisticated, so they'll
    have investments designed with inflation in mind...which
    could be an excellent argument against institutionalized
    inflation (ie, government monetary policy designed to
    devalue currency).
     
  12. Revoltingest

    Revoltingest Abnormal before it was fashionable
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    Altering the assumptions of the hypothetical in order
    to deny the point I'm trying to illustrate, eh. Are you
    arguing that all price increases are due solely to demand
    &/or improvements in quality....not due to currency devaluation?
     
  13. We Never Know

    We Never Know Well-Known Member

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    U.S. National Debt Clock : Real Time

    IMG_20220121_135024.jpg
     
  14. Twilight Hue

    Twilight Hue Twilight, not bright nor dark, good nor bad.

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    I prefer a good paying steel mill with a full pension program making a comeback.

    Do you think a tech manufacturer can duplicate that?
     
  15. sayak83

    sayak83 Veteran Member
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    Those days are gone. Most steel manufacturing is highly automated nowadays anyway.
     
  16. Revoltingest

    Revoltingest Abnormal before it was fashionable
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    And fabulous!
     
  17. Twilight Hue

    Twilight Hue Twilight, not bright nor dark, good nor bad.

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    Not really. I've been in enough of them to know there's plenty of manual tasking involving the equipment still around.

    The only thing I've seen automated is the train / rail system.
     
  18. Saint Frankenstein

    Saint Frankenstein I'm not deaf, I'm just a real bad listener
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    Somehow I doubt those numbers, especially when millions of people were quitting their jobs each month last year (probably still are, but the news is burying the story). They always lie about those stats to make it seem better than it is. There's a severe labor shortage.
     
  19. Twilight Hue

    Twilight Hue Twilight, not bright nor dark, good nor bad.

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    I think people woke up to how much employees have been taken advantage of by their employers.

    While senior mgt is well off , people are finding they themselves are not, and are just not going to be used like that anymore.

    I'm actually a bit humbled by all of this and elated at least for now as employers are scrambling to sweeten the honeypot to attract and retain its workforce that keeps them in business in the first place.

    Without them, a company is nothing.
     
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  20. Kooky

    Kooky Freedom from Sanity

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    Most of the economic recoveries in the last two decades of US history have been jobless or mostly jobless. It's not implausible in that light, especially considering that most capital in the West is tied in rent seeking, rather than the places that would commonly employ a lot of people.
     
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