Re: Rational economics discussion Re: Trump's plans....

The economy under Trump was robust...lowered regs to spur growth, net negative interest rates, available labor pool, etc. helped float all boats. Cutting taxes along with stock market gains certainly made most feel secure.

Now that the sticky inflation is hanging around with most goods costing more than three years ago, I have concerns that Trump's similar policies and beliefs might dampen an economy that, by all economists' accounts, is remarkably strong. Folks right now feel a pinch, but in six months (studies show) that the pinch will no longer feel like a pinch because higher prices have become the norm as prices don't usually ever fall in times of economic expansion.

If similar tactics are used to stoke an already good economy, inflation most definitely will perk up again because:

1) There's around 0.7 workers for every available job vs around 1.5 during Trump's time. An even tighter job market raises wages, and higher wages means higher prices across the board.
2) Throwing all of the illegals out of the country and closing the border further reduces the workforce.
3) The promised protectionist Tariffs make the costs of goods go up...if anyone remembers the lumber price issues of a few years ago - that's a good example, along with increases on china's crap.
4) The encouraged lowering of interest rates indirectly raise prices since they typical make the economy heat up....

I do think loosening oil and gas production regs will help lower overall costs, but the other big picture thoughts are a real concern of bringing back inflation of most consumer goods.

RememberTheDanny

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Biden threw carcass into the well. Disinfectant wont stop stink much longer

Mar 9, 2024, 3:44 PM

With what the OBiden Handlers Admin has done with the economy already, it is destined to go poorly regardless of who becomes our next president -&- which party takes (or resumes) its place in Congress.

Inflation will skyrocket if Federal Reserve cuts interest rates. Currently, the Federal Reserve is in a heck of a pickle to balance the high interest rates needed to sell new T-bonds into the global market to cash out the old (low interest rate) T-bonds which are maturing. The Fed has not ‘honestly’ funded the Treasury under the Biden Admin. Even without a legitimate excuse to engage in wild fiscal policy, as Trump had to do during COVID economic crisis year in 2020, the Federal Reserve under Biden has greatly increased the issuance of ‘IOU’s’ to the Treasury so that the Treasury can manage the increase in money supply that our indebtedness driven economy needed to function.

In other words, the Biden Admin’s inflationary policies, combined with the Federal Reserve’s reluctance to offer high enough interest rates so that USA can actually attract enough buyers to actually buy all of the T-bonds that we need to sell so that real money (not just IOU’s) are needed to keep our country running on real money.

This is akin to throwing a carcass into a well, covering up the stench for a while with disinfectant, and hoping to sell the property with the well before the stink overwhelms the disinfectant’s ability to suppress the stink.

Nobody, and I mean NOBODY, can do economic party tricks to get past this pending deep recession / possible depression. Biden wins, Trump wins, Big Mike wins … it doesn’t matter.

The Great Financial) Reset will be the ‘answer’; when that happens, or whether that happens in the next 4 to 8 years), is the way out. That will be a seismic event for all of the world’s societies.

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Rational economics discussion Re: Trump's plans....

If Trump achieves his goals, the economy tanks.

Insert Morgan Freeman - Hes right you know - meme