They can’t pay rent but they all have brand new IPhones and a Robinhood portfolio of GME AMC DOGE and other assorted internet hype dogshit Their parents were most likely stupid and their kids are definitely going to be stupid as well. Welcome to America 2024
Yes absolutely agree that the cause of current inflation is caused by a huge drop in productivity brought on by the pandemic but that's not the only cause. It's also exacerbated by the reckless showering of cash onto people which allows people being able to spend more on very limited quality of products thus driving prices further into inflationary territories. So an increase in interest rate is necessary unfortunately to essentially encourage people to put the money away and not spend them all. What countries with planned economies would do is to install a voucher system where purchasing certain kinds of goods would require the surrendering of a fixed number of government-issue vouchers issued by the government according to the number of members in a household in addition to cash and the number of vouchers required would depend on the quantity of the goods to be purchased. Trading and altering the vouchers would be illegal and punishable by very harsh punishments. The voucher system would only be phased out once productivity picks up to the point that supply is more than enough to satisfy demand. That's not a perfect solution but it's a solution. That's temporary cuz all of the medical resources were all concentrated on getting rid of covid. Once covid eases, the shortage would gradually ease off as well. Like I said before, the fed can't really leave the rate at zero; that would've exacerbated the problem. What they could've done is do a a better job encouraging people to work instead of just handing out stimmie, create more incentives not with money but perhaps in tangible goods to encourage people to work, do more to create and support some sort of bartering networks to encourage people not to use money as much to exchange for goods so the real value of the goods gets increased. With regards to increasing housing, what they should've done is to use better technology to build more affordable housing and not just any housing. This is what people need, housing with new innovative and yet low-cost materials instead of the traditional materials that experienced a shortage and a huge price spike on the world market, housing using innovative technology like 3D-printing and etc. Crisis are not problems but opportunities to create innovative solutions and with this inflation, I find there are not many innovations, new ways of doing things in addition to the good 'ol' strategy of increasing interest rates and that is a shame.
You make a good point about a drop in domestic productivity. My argument was based on a shortage of foreign produced materials/components. I still don’t understand where all the workers went after the stimulus checks and extra unemployment benefits ended. The rest of your argument goes against my core beliefs though. Another stimulus check would be OK with me. I think a lot of that was converted to BTC and that could help my position….
That is correct. Youth are more concerned about their social status, than basic needs of food and shelter. They will hang out with parents for as long as possible, couch surf, stiff an Airbnb host for a week etc. There are other options which are undesired by most.
Some of the possible places that they could've gone to: 1) School 2) Private investing including crypto-investing like you said 3) Starting their own business 4) Forever retired Another stimulus check would've exacerbated the inflation problem even further. The Feds would've really needed to increase the interest rate to double-digit to bring the inflation down. Excessive cash + drop in productivity = inflation. The more excessive cash there is, the bigger the inflation. Just looking at how the hyperinflation was created in Germany after WWI would've illustrated to you exactly this point. Biden was extremely irresponsible in showering the masses with the stimulus checks if you ask me, In light of the shortage of foreign-produced components and supplies, Biden should've made an even bigger effort to encourage local production of these components and supplies to make up for the shortfall in foreign production instead of just handing out money. Increasing productivity is the only true way to keep inflation under control, not increasing interest rates. When you increase interest rates to too high of a level, it increases the potential for a recession which would've been even more devastating than inflation. If Biden hadn't been this reckless in handing out free money, the inflation would've been this bad and the Fed wouldn't have needed to increase the interest rate this much.
I agree. But I was slightly serious about the stimulus helping BTC. The checks were small enough to not make a difference in people’s situations so they took a gamble on a highly volatile asset like buying a wad of lottery tickets.
From here on is only pain. Rates going lower = hyperinflation. Rates going higher = Implosion. What do they prefer is the question.
Honestly I wonder how my tenants afford it every week. And I try to stay at the lower end of what I could get.
Its way beyond living below your means. You used to be able to live a semi middle class life on one salary. a two bedroom used to be $750 in a decent neighborhood in Miami back in the late 80s -90s . Now it’s $2800 plus. Good for people who purchased income properties back in the day.