Strangely†, the Fed actually understands that monetary policy affects the economy weeks to months AFTER the policy change. And that thrashing does nothing good, and probably does bad things to the stock market.
And the covid lockdown payments weren’t about inflation OR deflation, they were an attempt to keep people, but mainly businesses functioning. Which did have the unexpected side effect of giving workers time to (re)consider whether they were willing to work in situations like they had been locked out of.
I never noticed that things got cheaper or that money bought more during the last 2 years. Abd at 6% inflation, it takes 12 years for prices to double, so I’m not sure I get why this is such a big deal.
This bout of inflation began this past February when the Saudis announced they were raising oil prices to cover the 40% loss in profit due to COVID-19. U.S. oil companies took it up immediately, and other industries and businesses followed suit. The message sent by Biden’s release of some strategic reserves was clear. Stop the rising prices or he’ll act further. There has been a small decline so far. We’ll see if they would like to return to the days of the ‘Windfall Profit Tax’.
Poor Biden, the GOP thinks he’s too left and the left thinks he’s too centrist. Biden is trying to be the leader for everyone. And, there are still more moderates in the US than liberals or conservatives. Both Clinton and Obama (in 1992 and 2008, respectively) ran on platforms that stressed “kitchen table” issues (job creation, middle class tax relief, etc.) over identity politics.
Concretionist over 2 years ago
Strangely†, the Fed actually understands that monetary policy affects the economy weeks to months AFTER the policy change. And that thrashing does nothing good, and probably does bad things to the stock market.
And the covid lockdown payments weren’t about inflation OR deflation, they were an attempt to keep people, but mainly businesses functioning. Which did have the unexpected side effect of giving workers time to (re)consider whether they were willing to work in situations like they had been locked out of.
† /sarcasm
braindead Premium Member over 2 years ago
Sure.
Concentration of industries has NOTHING to do with inflation.
rossevrymn over 2 years ago
I finally saw a piece that suggested inflation is more bad for the rich.
ChristopherBurns over 2 years ago
I never noticed that things got cheaper or that money bought more during the last 2 years. Abd at 6% inflation, it takes 12 years for prices to double, so I’m not sure I get why this is such a big deal.
ncorgbl over 2 years ago
This bout of inflation began this past February when the Saudis announced they were raising oil prices to cover the 40% loss in profit due to COVID-19. U.S. oil companies took it up immediately, and other industries and businesses followed suit. The message sent by Biden’s release of some strategic reserves was clear. Stop the rising prices or he’ll act further. There has been a small decline so far. We’ll see if they would like to return to the days of the ‘Windfall Profit Tax’.
jvscanlan Premium Member over 2 years ago
This is not what is going on in the Biden White House
GaryCooper over 2 years ago
My cats want their checks.
Northgalus2002 over 2 years ago
Poor Biden, the GOP thinks he’s too left and the left thinks he’s too centrist. Biden is trying to be the leader for everyone. And, there are still more moderates in the US than liberals or conservatives. Both Clinton and Obama (in 1992 and 2008, respectively) ran on platforms that stressed “kitchen table” issues (job creation, middle class tax relief, etc.) over identity politics.