Biden's inflation economy: inflation hits 40 year high

[Parkbandit]

Um the inflation is global, and it's largely from COVID-related supply chain issues.

We just had record growth in the US, and wages are going up quickly. That's about as good as it gets when dealing with global inflation

I'm honestly surprised you didn't somehow blame President Trump.

Like shocked.

Instead, you are blaming supply chain issues and not the shit policies enacted by President Biden.

I can only give you partial credit for this post.

Be better.

[ClydeR]

It's no coincidence that inflation hit a 40 year high at the same time GDP growth hit a 40 year high. With that much growth so quickly after the anemic production and distribution during the 2020 recession, inflation was inevitable. The current inflation appears to be healthy inflation -- a side effect of extremely high economic growth. It's like being out of breath after jogging.

Unhealthy inflation results from a loss of faith in the stability of money, which can be caused just by the public's expectation of high inflation. It's like being out of breath from walking to the mailbox at the end of your driveway.

Healthy inflation can quickly morph into unhealthy inflation if the public's expectations of continued inflation change.

If the Fed threads the needle of tamping down economic demand while avoiding excessively increasing public fear of inflation, then Jerome Powell should get a medal. Otherwise, we'll have to end inflation as we always do, by raising interest rates until we have a prolonged recession.

[Shaps]

It wasn't "growth"... it was people going back to work.

https://fred.stlouisfed.org/series/CIVPART

Labor participation isn't even back to pre-pandemic levels.

"Growth" would be get the economy to where it was pre-pandemic... then go UP from there... that's "growth". Goodness.

[ClydeR]

"Growth" would be get the economy to where it was pre-pandemic... then go UP from there... that's "growth". Goodness.

That's a clever point. But there are two problems with your method of measuring growth..

1. Growth is normally measured period-over-period. You can measure it from the peak or trough of the previous business cycle if you want, but your numbers will not match the numbers that economists normally use.

2. During the 2020 recession, the United States experienced deflation. Measuring inflation period-over-period, as the 40-year high number was measured, means measuring from the deflated numbers produced by the 2020 recession, which makes the current inflation numbers higher than they would be if measured from the peak of the economic cycle before the 2020 recession. Goose and gander, you know.

[Shaps]

That's a clever point. But there are two problems with your method of measuring growth..

1. Growth is normally measured period-over-period. You can measure it from the peak or trough of the previous business cycle if you want, but your numbers will not match the numbers that economists normally use.

2. During the 2020 recession, the United States experienced deflation. Measuring inflation period-over-period, as the 40-year high number was measured, means measuring from the deflated numbers produced by the 2020 recession, which makes the current inflation numbers higher than they would be if measured from the peak of the economic cycle before the 2020 recession. Goose and gander, you know.

Very good points, and well said. Do appreciate the clarification.

Doesn't change the fact, people claiming Biden is helping "grow" the economy isn't really honest... just saying - "go back to living" was going to "grow" the economy. No policies, or actions, I've seen so far have really helped businesses. I've seen some lip service, some bills that spread some $ around as kickbacks, but not really in the regulations passed to promote investment and "growth".

Maybe they'll wake up and realize, if they don't do shit and stay out of the way, things would actually "grow". Here's to hoping.

For those that claim the Infrastructure Bill... we'll see how that plays out.

[Parkbandit]

Doesn't change the fact, people claiming Biden is helping "grow" the economy isn't really honest... just saying - "go back to living" was going to "grow" the economy.

What? That's crazy talk. THe Democrats would never, ever be dishonest about a point they are trying to score.

Never...

[Tgo01]

What? That's crazy talk. THe Democrats would never, ever be dishonest about a point they are trying to score.

Never...

That has to be the best Tweet in existence.

[Parkbandit]

That has to be the best Tweet in existence.

And they have retards like Seran being all:

[Pin]

Switzerland inflation: 1.5%
Japan: 1.7%
Isarel: 2.8%
France: 2.9%
Hungary: 3.1%
Norway: 3.2%
South Korea: 3.6%
Sweden: 3.9%

But don't worry, we are in good company with countries such as:
Russia: 8.4%
Ukraine: 10%
Egypt: 10.3%
Ghana: 13.9%

Not sure if it means anything, but it's an interesting correlation none-the-less.

Switzerland vaccinated: 68%
Japan: 79.4
Israel: 66.3
France: 77
Hungary: 62.9
Norway: 74.5
South Korea: 85.3
Sweden: 72.8

Russia: 49.1
Ukraine: 33.8
Egypt: 27.8
Ghana: 10.1

The US (64.5) is the only country that doesn't seem to follow the trend as far as vaccination rates and inflation; that being said, the US also has a larger population in Florida than most of those countries have in total.

What tends to really give me pause however is all the US companies (Disney, Exxon, etc) that are recording record profits. If inflation was a main driver in cost increase due to policy, than these companies would have relatively stable profits.

Edit to add:

Looking at vaccination vs inflation a little deeper, there seems to be a pretty straightforward line between 63% rates and inflation 5.8% and lower, again with the US being the only real outlier.

Ahhh red rep, how I missed you.

[Tgo01]

Here are two of the sneaky ways I have noticed food companies charging a lore more for their products without raising their prices too much.

I buy cabbage at Sam's Club. Three large heads came in a pack. Not only has the price increased slightly, but the heads of cabbage are much smaller, probably around 30% smaller, AND the package only comes with 2 heads of cabbage instead of 3. They even use the exact same packaging as before that clearly states it's a package of THREE heads of cabbage.

My nacho lunchables, one of the best inventions of mankind, practically give you no cheese to dip your chips with anymore! Oh sure you get cheese, but it's probably about 20% of what you used to get. But of course they also raised their prices.

And keep in mind when the US calculates inflation they just go by direct dollar numbers, they don't compare the fact that, for instance my cabbage example, that we are getting less than half the food we were before.

There are other much more sneaky ways companies do this shit that 99% of people would never even notice.

For example that 18 ounce box of cereal you like might only be 17.9 ounces in a couple of months, then 17.8 ounces a couple of months after that. A change so small you wouldn't really even notice it unless you look at the tiny text along the box which states how much the cereal weighs and you remembered how much cereal was in there last time.

The crazy part is the US has PLENTY of energy! We have so much energy in this country we could easily meet all of our needs and start selling our excess energy to Europe. But instead Democrats are demonizing our energy production and shackling them with more costly regulations instead of easing up on regulations and maybe even giving them a tax break on the condition they pump out more energy.

Let the peasants eat cake!