The Economy and Economics

aloyouis

at least generally aware
Joined
May 27, 2006
Messages
9,216
Reaction score
3,226
Points
113
Location
Michigan
No, it's here. Stagflation, economic crash with GDP propped up by money printing.

In Keynesian economics, economic growth is measured in GDP, and GDP is measured in dollars, so all you have to do to offset a shrinking GDP and economic recession is print lots and lots of dollars, generate lots of inflation, and then count the dollars you printed as GDP growth. They'll point to the stock market too, because stocks are where inflation goes in America, so it is apparent growth, but actually it's just inflation, because the rising stock prices are disassociated from any actual productivity.

You print the money, give it to your rich banker Wall Street Friends, who buy up stocks and commodities with that freshly printed money, and drive the prices of stock up...but that kind of GDP growth reflects nothing but a massive wealth transfer from the bottom to the top, because by the time that money reaches teh average person, all the prices in the economy have already adjusted to the new money supply, so average folks derive no benefit from it.

That's why the rich get richer and the poor get poorer. This "infrastructure bill" is a perfect example of how you make rich people richer and poor people poorer, and convince them that they aren't because just look at those stock markets and GDP!

And most people, who have no clue why the rich keep getting richer, cheer on every new money printing bill, thereby screwing themselves harder and harder, every time, and despite their personal pain, they allow themselves to believe what they are told, because the stock market is booming and GDP is going up, while they eat their Rahmen noodles and Kraft macaroni for dinner.


Great explanation. Fantastic, actually. One thing I would ask is your definition of "rich" and "poor". I ask that because I think the "rich" strata is deeper than most people realize when talking about them as you do above or at least it is deeper as it applies to people's ability to benefit from what you explained above.

There is a hump to get over. The way I tried to explain it to my kids is by talking about a snowball and a hill. Anyone in this country can become rich enough to partake in the "rich getting richer" if you do a few simple things early enough and for a long enough time. Anyone.

Of course, there will always be a lot of people that are "poor" and stay there, but in this country (at least for now) that is almost always because of the decisions they make.
 

imapig

Roger Godell Gets mounted by Stallions
Joined
Aug 26, 2008
Messages
30,378
Reaction score
6,198
Points
113
Location
On the beach
they were just filling an opening:dancingcucumber:
Yeah I got fired for jerking off in the bathroom and hitting on chicks. Well they don’t know if I was jerking off, but they had their suspicions iouns. I’m In the bathroom stall, The boss Was right on the other side of the door and I could look down and see his feet tapping away. 🤣🤣🤣🤣

It’s amazing when you really think about The thousands of tampons that I handled eventually made it into another woman. I’m really proud that I made my mark in this world.
 
Last edited:

Baron Samedi

Russian Bot 762X54R
Joined
Feb 14, 2007
Messages
29,394
Reaction score
2,927
Points
113
Age
52
Location
Framingham
Great explanation. Fantastic, actually. One thing I would ask is your definition of "rich" and "poor". I ask that because I think the "rich" strata is deeper than most people realize when talking about them as you do above or at least it is deeper as it applies to people's ability to benefit from what you explained above.

There is a hump to get over. The way I tried to explain it to my kids is by talking about a snowball and a hill. Anyone in this country can become rich enough to partake in the "rich getting richer" if you do a few simple things early enough and for a long enough time. Anyone.

Of course, there will always be a lot of people that are "poor" and stay there, but in this country (at least for now) that is almost always because of the decisions they make.

It doesn't really matter where you draw the line, it just so happens that rich people get the benefit of government spending, the vast bulk of it...anything that is not welfare or social security, essentially. The sort of people who have stock portfolios, and generate their income by way of capital gains, not payroll.

What matters is that when these folks at the top get teh money, they buy up assets and goods, at current prices. So the demand and reduction of supply of these things leads to a rise in prices. Then the second tier who sell assets and goods get the money, and they buy more things, thereby increasing demand and reducing supply further, and so on down the line. Each person or institution in that chain gets less purchasing power from that money as it reaches them, because the markets adapt to the new balance of money and goods as it works it's way down the chain. The last in that line, the wage workers, who live off paychecks, get 0 benefit because by the time the money falls to them, in the form of raises in their paychecks, the prices of everything have already gone up, from barrels of oil, to stocks, to lettuce and hamburger. They get no benefit, they just need more money to buy the same amount of stuff they did before, they never have new money with old prices to take advantage.

Think of it this way....if we are playing monopoly, and every time you pass Go, you get $200, and every time I pass go, I get $400 because Uncle Sam gave me $200 in economic stimulus, who wins? I do, of course, but there is no denying that the economic stimulus led to more houses and hotels, and higher property values when we are bidding on property. That extra money created measurable economic stimulus, but only one of us benefitted. When I land on your property, sure, you get some of that money, but I have already accumulated houses, hotels, and properties, which are now more scarce by the time you get that money. In the real world, that means higher property values, rising prices of housing, and so on....but I bought those things at the old prices, by the time you get that money, prices have already risen, and you still can't buy any more with the additional money than you could have with less money before the "economic stimulus".

Make sense?

It doesn't matter who you define rich and poor. What matters is where on the ladder between wage slaves and Wall Street you are...the higher on that ladder, the more you benefit from government spending, the lower you are, the less you benefit, except for the subsistance checks given to the bottom, which is free money, but enough to live on, not enough to invest and save and rise to higher rungs on the ladder, just enough to keep you alive and reasonably comfortable, so that you don't have any ambitions to climb the ladder, it's too hard, and so easy to just feed off the handouts and relax.

This is a lesson learned after WW1, when the Progressives introduced welfare for white widows so they could keep their homes, and their land, and their housemaids without a husband to earn and pay the bills, but what happened, was the widows lost all of their wealth instead, while the housemaids and blacks and immigrants worked hard and were becoming a middle class. This was immediately corrected when the government sent agents into the black communities to get them on welfare, thus shifting the apathy from the white widows to the blacks and immigrants, which halted their ascent to the middle class, for decades, and even a century later, remains true. Kill the need to work and build capital, and you kill the incentive. And you can do it with a veneer of altruism and faux sympathy. You can see the effect today, with the government unemployment bonuses....why work if you don't have to? No work means no accumulation of capital, in the form of savings and assets. Thus, you go nowhere, you remain at the bottom, dependent and apathetic.

If you want to verify any of this stuff, you have to do your own research, nobody will tell you.
 

aloyouis

at least generally aware
Joined
May 27, 2006
Messages
9,216
Reaction score
3,226
Points
113
Location
Michigan
It doesn't really matter where you draw the line, it just so happens that rich people get the benefit of government spending, the vast bulk of it...anything that is not welfare or social security, essentially. The sort of people who have stock portfolios, and generate their income by way of capital gains, not payroll.

What matters is that when these folks at the top get teh money, they buy up assets and goods, at current prices. So the demand and reduction of supply of these things leads to a rise in prices. Then the second tier who sell assets and goods get the money, and they buy more things, thereby increasing demand and reducing supply further, and so on down the line. Each person or institution in that chain gets less purchasing power from that money as it reaches them, because the markets adapt to the new balance of money and goods as it works it's way down the chain. The last in that line, the wage workers, who live off paychecks, get 0 benefit because by the time the money falls to them, in the form of raises in their paychecks, the prices of everything have already gone up, from barrels of oil, to stocks, to lettuce and hamburger. They get no benefit, they just need more money to buy the same amount of stuff they did before, they never have new money with old prices to take advantage.

Think of it this way....if we are playing monopoly, and every time you pass Go, you get $200, and every time I pass go, I get $400 because Uncle Sam gave me $200 in economic stimulus, who wins? I do, of course, but there is no denying that the economic stimulus led to more houses and hotels, and higher property values when we are bidding on property. That extra money created measurable economic stimulus, but only one of us benefitted. When I land on your property, sure, you get some of that money, but I have already accumulated houses, hotels, and properties, which are now more scarce by the time you get that money. In the real world, that means higher property values, rising prices of housing, and so on....but I bought those things at the old prices, by the time you get that money, prices have already risen, and you still can't buy any more with the additional money than you could have with less money before the "economic stimulus".

Make sense?

It doesn't matter who you define rich and poor. What matters is where on the ladder between wage slaves and Wall Street you are...the higher on that ladder, the more you benefit from government spending, the lower you are, the less you benefit, except for the subsistance checks given to the bottom, which is free money, but enough to live on, not enough to invest and save and rise to higher rungs on the ladder, just enough to keep you alive and reasonably comfortable, so that you don't have any ambitions to climb the ladder, it's too hard, and so easy to just feed off the handouts and relax.

This is a lesson learned after WW1, when the Progressives introduced welfare for white widows so they could keep their homes, and their land, and their housemaids without a husband to earn and pay the bills, but what happened, was the widows lost all of their wealth instead, while the housemaids and blacks and immigrants worked hard and were becoming a middle class. This was immediately corrected when the government sent agents into the black communities to get them on welfare, thus shifting the apathy from the white widows to the blacks and immigrants, which halted their ascent to the middle class, for decades, and even a century later, remains true. Kill the need to work and build capital, and you kill the incentive. And you can do it with a veneer of altruism and faux sympathy. You can see the effect today, with the government unemployment bonuses....why work if you don't have to? No work means no accumulation of capital, in the form of savings and assets. Thus, you go nowhere, you remain at the bottom, dependent and apathetic.

If you want to verify any of this stuff, you have to do your own research, nobody will tell you.
I understood your point in the original post both because it is basic and I am an Econ major. I wrote my senior paper on the Carter presidency so, yeah...

Simply put, my point was that the "rich" that benefit isn't the top 1% as the original post may have led some folks to believe.. It is far more than that AND that we aren't India, locked into a caste system never allowed to move up.
 

deec77

Well-known member
Joined
Sep 8, 2008
Messages
17,788
Reaction score
9,270
Points
113
I want to say it was $2.31 but I really cant say for sure. I worked at Stop &Shop until I graduated from college and received my BS degree.

~Dee~
 
Last edited:
OP
johnlocke

johnlocke

Well-known member
Joined
Jan 11, 2008
Messages
14,755
Reaction score
5,839
Points
113
Age
49
Location
Salisbury, NH

U.S. Consumer Prices Rose Strongly Again in May​

Consumer-price index surged 5% from a year ago, the highest annual inflation rate in nearly 13 years​



What Your Breakfast Can Tell You About Inflation Worries

What Your Breakfast Can Tell You About Inflation Worries

Rising costs for everyday foods such as bacon and fruit have raised concerns about inflation. Here is why you might be paying more for breakfast, and what that says about where prices might be heading in the future. Photo: Carter McCall/WSJ

By
Gwynn Guilford
Updated June 10, 2021 8:54 am ET

U.S. consumer prices continued to climb strongly in May, surging 5% from a year ago to reach the highest annual inflation rate in nearly 13 years.
The Labor Department said May’s increase in consumer inflation was the largest since August 2008. The jump followed a 4.2% rise for the year ended in April. The core-price index, which excludes the often-volatile categories of food and energy, rose 3.8% in May from a year before—the largest increase for that reading since June 1992.

Prices for used cars and trucks leapt 7.3% from the previous month, driving one-third of the rise in the overall index. The indexes for furniture, airline fares and apparel also rose sharply in May.

On a month-to-month basis, overall prices rose a seasonally adjusted 0.6% and core prices rose 0.7%.
 

Baron Samedi

Russian Bot 762X54R
Joined
Feb 14, 2007
Messages
29,394
Reaction score
2,927
Points
113
Age
52
Location
Framingham

Soaring factory prices in China add to global inflation fears​


China factory inflation was 9% in the month of April alone.

I knew this already due to the nature of my work, but generally I only tell people who will believe me rather than the MSM. These are the same people who take their personal financial advice from asshats on MSM TV, because they don't understand that they aren't the client that asshat is representing. Their role is the sucker. This will become very apparent this year...lol.
 
OP
johnlocke

johnlocke

Well-known member
Joined
Jan 11, 2008
Messages
14,755
Reaction score
5,839
Points
113
Age
49
Location
Salisbury, NH
Fools. Cheap energy is essential to human growth and flourishing. Green Energy is no such thing. If the eco-fascists truly believed the shit they spew they would embrace nuclear. But their goal is not human life but its destruction.



Oil Price Hits Pandemic High as Investors Bet on Green Energy​

Wall Street’s preference for renewables could mean oil producers will now struggle to meet demand​

im-350739

Some analysts expect surging demand and limited supply to lower global inventories and cause shortages.​

PHOTO: PHOTO: DREW ANGERER/GETTY IMAGES
By
Amrith Ramkumar
and
Joe Wallace
Updated June 14, 2021 5:51 am ET

Some investors are wagering that Wall Street’s preference for green energy will depress spending on oil extraction, setting the stage for supply shortages and higher fuel prices.

The bets come as money managers line up trillions of dollars for wind, solar and other renewable programs and expenditures on oil projects tumble. The drop in fossil-fuel spending is becoming so severe that energy companies could struggle to quench the world’s thirst for oil, some analysts say.
Crude is still expected to remain in high demand over the next decade to make transportation fuels and petrochemicals used for plastics and other household products. U.S. consumption has surged lately following the worst of the coronavirus pandemic, and output cuts by the Organization of the Petroleum Exporting Countries have given prices a further boost.

U.S. crude hit $71.48 a barrel Monday, its highest level in more than 2½ years, and has roughly doubled since the end of October. Some traders are using options, which allow the holder to buy or sell an asset at a specific price in the future, to wager on prices hitting $100 by the end of next year.
 

ParanoidPatriot

Well-known member
Joined
Dec 19, 2007
Messages
10,018
Reaction score
1,690
Points
113
Location
in my shed
High oil and gas prices hurt the poor and middle class the most.
These are the very same people that the Dems always say that they care about the most.
Implementing the Green New Deal will have a crushing effect on the poor and middle class, but the left doesn't care because they know better than the little people.
 

aloyouis

at least generally aware
Joined
May 27, 2006
Messages
9,216
Reaction score
3,226
Points
113
Location
Michigan
High oil and gas prices hurt the poor and middle class the most.
These are the very same people that the Dems always say that they care about the most.
Implementing the Green New Deal will have a crushing effect on the poor and middle class, but the left doesn't care because they know better than the little people.
For the last 100 years this is what the Dems have done and the sheep still believe them.
 
Top