If you don’t understand the difference in economic conditions between the Obama administration and the Trump administration then you really shouldn’t be in any conversation that involves economics.
and you should yield when considering one method 'tempered' and the other reckless destruction. It is, of course, not only partisan hackery, but completely incorrect...
Yield to what? Trump’s fiscal management is completely reckless. Does anyone have a problem with that statement?
yield, partisan hack, YIELD. Tax cuts are great. Spending is bad. Fortunately, Trump is creating a business friendly environment that will bring people here... Yes, even smart people who disagree with his innuendos and off hand remarks...
you used words together that made no financial sense. "New Debt based money". so never mind the fact you were trying to blame tax cuts for inequality even though the bottom half does not even pay Federal income taxes and 40 to 60 million new Americans came here. You now just used an oxymoron for our system New Debt based money. The point of borrowing money is that you don't create new money. Therefore we are told govt spending does not create systemic inflation when it borrows the money instead of printing it. Lets not just spout leftist propaganda. If we are going to discuss wealth distribution let address what could actually because the money to get removed from the working class and redistributed or given to the elite and the cronies. Lets discuss how 40 million new people were brought in near the bottom since Reagan.
All of our money is debt based. Saying new debt based money is redundant, if anything. We are not told government spending does not create inflation, nor are we told it does not either. Borrowing can go either way as well. What you are failing to account for is borrowing during times of economic expansion is inflationary. If we were recessing I would support some kind of stimulus to fight deflation and get the economy moving. But stimulus of any kind during expansion is inflationary. It will overheat the economy and create an economic condition where the fed is working against the governments fiscal policy and Vice versa.
how is borrowing money which was already created inflationary? Borrowing money takes the money out of circulation does it not? you may be able to argue that resources and demands are shifted and prices may go up in some areas but there would be less demand in others. so perhaps you could see some localized inflation but borrowing money does not cause the systemic inflation we have seen. Prices have gone up hundreds of percents even though demand for the dollar was strong for one major reason. Massive money creation for its and its members accounts. Trillions in wealth distributed to FED cronies and its friends diluting the dollar. Did you study economics? Because I guarantee you that one of the reasons given for govts borrowing money instead of print it is to avoid inflation. for your information... here is just a few examples... https://www.elitetrader.com/et/thre...e-worst-generation.320580/page-6#post-4646925 Question: Why does The U.S. government borrow money and thereby create debt when it has the sovereign and Constitutional right to create whatever money we NEED? $1,000 of debt and $1,000 of created money are both the same claim on our wealth — but the debt adds interest and is thus more costly to us. Creating debt is simply dumb — it creates no more inflation than creating money. Paul Solman: Interesting question (or “comment”). But don’t you see the difference? Debt is a transfer of accumulated wealth from someone to someone else. New money is wealth created from scratch. New money makes old money worth less. As people rush to get rid of the old money before it loses too much value, those words can fuse into WORTHLESS. https://www.quora.com/How-does-the-selling-of-government-bonds-reduce-inflation here is some info from random people explaining how govt borrowing reduces inflation... Government bonds are how the government borrows money. It creates bonds and sells them. The money is used by the government to spend on whatever the government spends its money on. This does not take any money out of the economy it just redistributes it to the government and then outwards to government spend. So no effect on inflation. The Central Bank can buy government bonds on the Open Market with newly created money. This causes monetary inflation. So the answer is that the net effect of the government borrowing money is inflation. In fact this is the ONLY reason for long term inflation and is why everything today costs 10 times the amount it did in the 1970’s.
We can argue this all day because you keep driving right past my point. The economic conditions is what is determinant whether stimulus, in this case a tax cut program, is inflationary. Our country was at full employment when Trump took the reins. Now he is trying artificially grow it with debt. Now that would be nice but we are already pushing capacity of available workers and productivity. With tight supply conditions (full employment mployment) and increased demand (tax cut stimulus) that is exactly inflationary conditions. Simply put, throwing excess money into the market under these labor conditions creates the atmosphere of overheating the economy. It’s ironic you mentioned the 1970s because this is a very similar situation. Now I am not saying we are going to see that type of inflation and interest rates, but we are going to see substantial inflation.
you keep refusing to give a credible answer. We were not talking about Trump. you were spouting leftist propaganda about reagan tax cuts and inequality. Which you could not back up. I don't care to support trump's cuts. they are another story. Trumps tax cuts was in part designed to take money from those of us who make money in blue states and give it to cronies and elites.
Well let’s talk about the Reagan cuts. First let’s look at the wealth gap through the years. And at least agree the wealth gap between the wealthy and the working people has grown. Can we agree?