Causes of Inflation.....

[Eastmandawg]

y'all think this fellow was right??......Axe'in 4 a friend:

* "Inflation is made in Washington because only Washington can create money."

* "too much government spending and too much government creation of money and nothing else."


Kinda looks like ole Lester Maddox:

Link:

https://www.jamesjpn.net/economy/milton-friedman-only-government-creates-inflation/

 

[Dirty Hairy Dawg]

He was also spot on about unlimited immigration with a generous welfare system. Even though he wasn't an advocate for a large welfare system, he stated we could survive one but not both combined.

 

[Eastmandawg]

He was also spot on about unlimited immigration with a generous welfare system. Even though he wasn't an advocate for a large welfare system, he stated we could survive one but not both combined.

nothing is free....

 

[MaitlandFloridaDawg]

y'all think this fellow was right??......Axe'in 4 a friend:

* "Inflation is made in Washington because only Washington can create money."

* "too much government spending and too much government creation of money and nothing else."


Kinda looks like ole Lester Maddox:

View embedded media

Link:

https://www.jamesjpn.net/economy/milton-friedman-only-government-creates-inflation/

The GOAT of economists.

 

[JackRussellDawg]

The first rule of economics -

TANSTAAFL

There ain’t no such thing as a free lunch.

 

[Dirty Hairy Dawg]

The GOAT of economists.

Always thought his appearances on Donahue were good debates.

 

[Dawgfan1966]

y'all think this fellow was right??......Axe'in 4 a friend:

* "Inflation is made in Washington because only Washington can create money."

* "too much government spending and too much government creation of money and nothing else."


Kinda looks like ole Lester Maddox:

View embedded media

Link:

https://www.jamesjpn.net/economy/milton-friedman-only-government-creates-inflation/

That man was a genius! He could explain such things , so students could understand And grasp the concepts of financial independence as well as sweet freedom. YouTube has a great video where he took a young Michael Moore out behind the woodshed. Check it out

 

[Eastmandawg]

The first rule of economics -

TANSTAAFL

There ain’t no such thing as a free lunch.

“misconfused”……..have read numerous times on this here chat that the sitting president has nothing to do with inflation.

I just do not know who to believe these DAYZ.

 

[deadduckdawg]

“misconfused”……..have read numerous times on this here chat that the sitting president has nothing to do with inflation.

I just do not who to believe these DAYZ.

What was right then is still right now.

 

[Eastmandawg]

He was also spot on about unlimited immigration with a generous welfare system. Even though he wasn't an advocate for a large welfare system, he stated we could survive one but not both combined.

Hate to see where the total $ so far is to Ukraine.

 

[Eastmandawg]

What was right then is still right now.

Math and a little common sense is not hard for most. Just hope people educate themselves and then vote…..in that order.

Inflation & security are high up there on my list.

 

[JackRussellDawg]

Hate to see where the total $ so far is to Ukraine.

Me too and have no idea the total. However, I say this with a great deal of confidence: If we had redirected all that money, manpower, and equipment to defend our Southern border, we would have it locked down “tight as Dick’s hat band,” as my Dad used to say.

 

[Eastmandawg]

Me too and have no idea the total. However, I say this with a great deal of confidence: If we had redirected all that money, manpower, and equipment to defend our Southern border, we would have it locked down “tight as Dick’s hat band,” as my Dad used to say.

HA!…..sounds like something my Dad would say…..and concur.

 

[rjpdawg11]

Inflation is caused by big businesses changing whatever they want no matter what is going on. Just plain greed by fat cats who want that extra house and jet. Government has no control over these people and there is a certain group who only care about giving more tax breaks. I feel so sorry for people who can only make a billion dollars when they could be making two.

 

[JackRussellDawg]

Inflation is caused by big businesses changing whatever they want no matter what is going on. Just plain greed by fat cats who want that extra house and jet. Government has no control over these people and there is a certain group who only care about giving more tax breaks. I feel so sorry for people who can only make a billion dollars when they could be making two.

Wrong answer. You must retake Econ 101.

 

[rjpdawg11]

Wrong answer. You must retake Econ 101.

Yeah right.

 

[rjpdawg11]

I apologize for commenting on this site. I should know better. But I do get upset with some of the comments on here. I will stack my 4 years of college, 3 years of law school and working for various governmental agencies for over 40 years up against any of the off the cuff comments on this site. Unfortunately issues are much more complicated than can be expressed on the internet.

 

[Eastmandawg]

Inflation is caused by big businesses changing whatever they want no matter what is going on. Just plain greed by fat cats who want that extra house and jet. Government has no control over these people and there is a certain group who only care about giving more tax breaks. I feel so sorry for people who can only make a billion dollars when they could be making two.

“big businesses” must really HATE Joe:

 

[JackRussellDawg]

I apologize for commenting on this site. I should know better. But I do get upset with some of the comments on here. I will stack my 4 years of college, 3 years of law school and working for various governmental agencies for over 40 years up against any of the off the cuff comments on this site. Unfortunately issues are much more complicated than can be expressed on the internet.

Hey man, don’t beat yourself up about it. Inflation is caused by multiple factors, not just one. Sometimes, one factor is the main cause, aka out control gubmint spending and the outright printing of money to vastly inflate the money supply in more recent times.

Corporate and billionaire greed are minor causes of inflation. After all, they gotta answer to shareholders like you, Capeche?

 

[WyoDawg307]

Inflation is caused by big businesses changing whatever they want no matter what is going on. Just plain greed by fat cats who want that extra house and jet. Government has no control over these people and there is a certain group who only care about giving more tax breaks. I feel so sorry for people who can only make a billion dollars when they could be making two.

Take a lap and try again.

 

[WyoDawg307]

I apologize for commenting on this site. I should know better. But I do get upset with some of the comments on here. I will stack my 4 years of college, 3 years of law school and working for various governmental agencies for over 40 years up against any of the off the cuff comments on this site. Unfortunately issues are much more complicated than can be expressed on the internet.

And there is the reason for your thinking. Did you ever work in the private sector or were you just destined to dislike the private sector because your employer is the direct opposite of a free market?

 

[Eastmandawg]

I apologize for commenting on this site. I should know better. But I do get upset with some of the comments on here. I will stack my 4 years of college, 3 years of law school and working for various governmental agencies for over 40 years up against any of the off the cuff comments on this site. Unfortunately issues are much more complicated than can be expressed on the internet.

WOW….how coincidental. Joe has been in government for over 40 years and been to law school too.

“Upset”??….surprised with that kind of resume. Would think you would have better control over your emotions.

Hang in there…..

 

[Eastmandawg]

Hey man, don’t beat yourself up about it. Inflation is caused by multiple factors, not just one. Sometimes, one factor is the main cause, aka out control gubmint spending and the outright printing of money to vastly inflate the money supply in more recent times.

Corporate and billionaire greed are minor causes of inflation. After all, they gotta answer to shareholders like you, Capeche?

Wonder how Milton Friedman’s resume stacks up against rjp’s….his is impressive 4 sure.

 

[Old GaDawg Man]

y'all think this fellow was right??......Axe'in 4 a friend:

* "Inflation is made in Washington because only Washington can create money."

* "too much government spending and too much government creation of money and nothing else."


Kinda looks like ole Lester Maddox:

View embedded media

Link:

https://www.jamesjpn.net/economy/milton-friedman-only-government-creates-inflation/

Of course he is right. Thanks Biden and the dems!!!

 

[DTwnDawg]

I apologize for commenting on this site. I should know better. But I do get upset with some of the comments on here. I will stack my 4 years of college, 3 years of law school and working for various governmental agencies for over 40 years up against any of the off the cuff comments on this site. Unfortunately issues are much more complicated than can be expressed on the internet.

Oh, please enlighten us on the border crisis as well..I’m sure those issues are more complicated than can be expressed also…it’s amazing whenever Dems ruin something, they NEVER take ownership of their actions and decisions.

 

[oldmandawg]

Inflation is caused by big businesses changing whatever they want no matter what is going on. Just plain greed by fat cats who want that extra house and jet. Government has no control over these people and there is a certain group who only care about giving more tax breaks. I feel so sorry for people who can only make a billion dollars when they could be making two.

Sadly your response is typical of how most dims think. Bizarre and totally out of touch with reality. Just another example of how our educational system has failed us.

 

[Zonadog]

I apologize for commenting on this site. I should know better. But I do get upset with some of the comments on here. I will stack my 4 years of college, 3 years of law school and working for various governmental agencies for over 40 years up against any of the off the cuff comments on this site. Unfortunately issues are much more complicated than can be expressed on the internet.

Just FYI, you aren't the only one here with an advanced degree and lengthy experience. You're going to have to do a better job of backing up your point if you want to be taken more seriously than other off the cuff responses on this board.

Think I found the chink in the armor, highlighted above. Any real world experience?

 

[MRDAWG]

Always thought his appearances on Donahue were good debates.

View embedded media

So after this Reagan, Bush and Trump cut taxes!

Friedman's theory didn't hold during COVID. USA had deflation with increased spending. I liked the spending for vaccine research and distribution but mostly for healthcare issues and stimulus payments.

 

[MRDAWG]

Me too and have no idea the total. However, I say this with a great deal of confidence: If we had redirected all that money, manpower, and equipment to defend our Southern border, we would have it locked down “tight as Dick’s hat band,” as my Dad used to say.

And Russia would be invading Poland now. Putin mentioned Poland 13 times in his interview with Tucker.
Yes we should have defended our Southern border at the same time.

 

[cherrydawg]

Yeah right.

This is the correct answer for you. We can all tell you have not taken econ 101 yet in your, I'm sure, stellar intellectual endeavors.

 

[deadduckdawg]

I apologize for commenting on this site. I should know better. But I do get upset with some of the comments on here. I will stack my 4 years of college, 3 years of law school and working for various governmental agencies for over 40 years up against any of the off the cuff comments on this site. Unfortunately issues are much more complicated than can be expressed on the internet.

Nobody would mind your comments if you had the slightest clue what you were talking about. Sounds to me like you’re overeducated and can’t hold a job.

 

[deadduckdawg]

So after this Reagan, Bush and Trump cut taxes!

Friedman's theory didn't hold during COVID. USA had deflation with increased spending. I liked the spending for vaccine research and distribution but mostly for healthcare issues and stimulus payments.

Good grief. We had no deflation during Covid. Here’s your reading assignment with a quote from the article.
https://www.stlouisfed.org/open-vau... chart shows, the,after the COVID-19 pandemic.
“The below chart from economic database FRED plots the year-over-year percentage change in the CPI. As this chart shows, the last time the United States experienced average price decreases was in 2009, around the Great Recession. That period of deflation was short and mild.”

 

[MaitlandFloridaDawg]

Good grief. We had no deflation during Covid. Here’s your reading assignment with a quote from the article.
https://www.stlouisfed.org/open-vau... chart shows, the,after the COVID-19 pandemic.
“The below chart from economic database FRED plots the year-over-year percentage change in the CPI. As this chart shows, the last time the United States experienced average price decreases was in 2009, around the Great Recession. That period of deflation was short and mild.”

In reality, there was a very brief moment when there was little demand for goods at the very beginning of COVID, so there was a minute where prices did drop, but that was replaced with low output and shortages which caused high inflation. COVID was extremely inflationary but it started with deflation.

 

[poorpreacher]

Trump and his MAGA followers caused it.

Did I do that right? Everything else is his fault, so I figured he's responsible for that too.

I'm sure Trump caused Covid, both wars that are going on, global warming, the immigration crisis, the division of America, the increased pet population, and organized crime.

 

[MaitlandFloridaDawg]

Hey man, don’t beat yourself up about it. Inflation is caused by multiple factors, not just one. Sometimes, one factor is the main cause, aka out control gubmint spending and the outright printing of money to vastly inflate the money supply in more recent times.

Corporate and billionaire greed are minor causes of inflation. After all, they gotta answer to shareholders like you, Capeche?

You know it’s funny, that term, corporate greed. Almost all of us invest in the stock market either directly or through mutual funds in IRAs or 401Ks, but it is considered unseemly for corporations or the wealthy to publicly admit that their primary goal is profit. Any company that has a goal of anything other than maximizing profit deserves bankruptcy. It is kind of like drivers who are constantly giving up right away to let other drivers in. They think they are being nice but in reality they are gumming up traffic and causing traffic jams for the rest of us. The economy functions best when corporations are free to maximize profits without government interference and without guardrails. There is no reason to pretend that a company has a mission other than to make money for owners, investors, and shareholders.

 

[JackRussellDawg]

In reality, there was a very brief moment when there was little demand for goods at the very beginning of COVID, so there was a minute where prices did drop, but that was replaced with low output and shortages which caused high inflation. COVID was extremely inflationary but it started with deflation.

I reckon the fed’s basket of goods didn’t include toilet paper, paper towels, cleaning products, and such.

 

[MaitlandFloridaDawg]

I reckon the fed’s basket of goods didn’t include toilet paper, paper towels, cleaning products, and such.

Inflation can be caused by several things, shortage of supply, increase in demand, increase in money supply, availability of capital, etc. During COVID, we saw a distortion of all of those things. While there was a shortage (early days) of things like hand sanitizer, rubbing alcohol, paper towels, toilet paper, etc; things like chicken (remember the guy on the Dawgvent who worked for a chicken plant that held a parking lot sale to unload inventory) and other food items, hotel rooms, gasoline, and many other commodity items were dirt cheap because of decreased demand. By the second half of 2020, we were clearly in an inflationary environment on all items except for those that there were still impacted by COVID restrictions. As things slowly opened up in 2021, 2022, and 2023, prices shot up on items that had previously impacted by restrictions. Couple that with money printing and interest rates, it was a perfect storm for inflation. The items most impacted by inflation over the long term are housing, health care, and education. What do these things have in common? They are all highly regulated and / or controlled by the government. Inflation is much more transitory for items with less government control. Government involvement causes inflation to become entrenched.

Sorry, I’m on my soap box this morning.

 

[SLC_Dawg]

Inflation is caused by printing money to cover over-spending. A president sends a budget bill to congress, so he is responsible for the inflation it causes.

 

[-lowcountrydawg]

Biden had economic tailwinds. Big time. Look at the run up in markets leading into 2021 and the amount of liquidity folks had between savings from Covid and tax free RE-fi proceeds from ultra low interest mortgages.

And despite the fact that anyone with a brain could see that we had already recovered economically. And the only ones super focused on keeping things shut down in early 2021 were politically minded folks who couldn’t bear the thought of agreeing with Trump / DeSantis - the democrats on a straight party line injected another trillion dollar stimulus.

And to make matters worse kept supply chains constrained with continued shutdowns and unnecessarily long quarantine rules for anyone 15 people removed from COVID. We had vaccines at that point. But the continued virtue signaling and shaming kept supply chains eff’d.

Straight party line. Demand >>>>>>> Supply = inflation. I blame the fed also for acting too late.

Defenders will say that global inflation proves this was not a US issue. True to some extent but remember that the World turns on US economic policy, the cost of US treasuries, US currency, etc, etc. Bottom line we were going to have some inflarion coming out of Covid but our Government threw gas on it.

When inflation hits as hard as it does, honestly the President probably gets too much blame. Covid took out Trump. Indirectly it is going to take out Biden as well - because the aftermath of Covid led to inflation which sure as shit effects everyone and is the number one reason he’s polling so poorly.

All that said - the things that help on inflation that you can control from a government standpoint are supply side economics and restraints on policy injexting more liquidity into the system.

Supply side constraints: government regulation in general and rhetoric painting big business as the enemy. Shutdowns. Government lawsuits shutting down M&A. Anything that keeps businesses operating at less than full potential

Excess demand: government spending. Stimulus. Government led liquidity infusions.

Inflation Would have been a thing regardless, but policy poured gasoline on it.

Presidents don’t control interest rates, but policy leading to rampid inflation forced the fed to raise them: too late and way too fast in my opinion. But had we done a better job with policy a few years ago, mortgage rates would be in the 4-5 range. Not the 6-7 range. Both Biden and Trump II should benefit from falling rates beginning this summer.

Bottom line - inflation would have been bad but not as bad with republican economic policy. And going forward in general the basic Econ 101 rules of supply / demand work better IMHO with republican policy: less regulation being the biggest “Trump II economic plan” that works much better than what we have now. It isn’t a Trump thing per se. It is a general principal of capitalism thing.

 

[deadduckdawg]

Inflation can be caused by several things, shortage of supply, increase in demand, increase in money supply, availability of capital, etc. During COVID, we saw a distortion of all of those things. While there was a shortage (early days) of things like hand sanitizer, rubbing alcohol, paper towels, toilet paper, etc; things like chicken (remember the guy on the Dawgvent who worked for a chicken plant that held a parking lot sale to unload inventory) and other food items, hotel rooms, gasoline, and many other commodity items were dirt cheap because of decreased demand. By the second half of 2020, we were clearly in an inflationary environment on all items except for those that there were still impacted by COVID restrictions. As things slowly opened up in 2021, 2022, and 2023, prices shot up on items that had previously impacted by restrictions. Couple that with money printing and interest rates, it was a perfect storm for inflation. The items most impacted by inflation over the long term are housing, health care, and education. What do these things have in common? They are all highly regulated and / or controlled by the government. Inflation is much more transitory for items with less government control. Government involvement causes inflation to become entrenched.

Sorry, I’m on my soap box this morning.

https://www.stlouisfed.org/open-vault/2023/august/explaining-inflation-disinflation-deflation
You’re speaking of deflation in prices of specific items, which does not necessarily indicate general economic deflation. You can always find specific items with falling prices. The Fed defines deflation as a “sustained decrease in the price of goods and services.”