The reason we should not be concerned about inflation

102,706 Views | 899 Replies | Last: 1 mo ago by LMCane
Oldag2020
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Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.
aTmAg
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AG
Remember, keynesians have no clue what they are talking about.

This thread is a good example.
jt2hunt
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Is this a joke?
TRADUCTOR
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Sounds magical.
When The Going Gets Weird, the Weird Turn Pro -HST
Onceaggie2.0
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I hope OP is not in charge of anything important in their life
DallasAg 94
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Ol_Ag_02
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Good lord. I wouldn't hire OP as an unpaid intern.
sonnysixkiller
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DallasAg 94
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DallasAg 94
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FbgTxAg
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Now I know why tigers eat their young.
Oldag2020
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DallasAg 94 said:

Onceaggie2.0 said:

I hope OP is not in charge of anything important in their life
He is the guy with the Capital One credit card being charged 30% for a maxed out card, brand new $50K car at 10% interest, trying to get a $400K mortgage at 5% interest while making $30K/yr and can't understand why he is broke.


I'm not sure you comprehend the difference in government debt and individual debt.
Illustrious Potentate
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I've read some dump posts on this site through the years, but this may be the dumbest. Blue star for you, OP.
BuddysBud
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Oldag2020 said:

Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.


This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.

Look, an endless supply of energy.
Oldag2020
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BuddysBud said:

Oldag2020 said:

Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.


This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.

Look, and endless supply of energy.


That is precisely where we are. I don't believe I could have said it any better!
TheMasterplan
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The transitory explanation makes some sense.I'm not convinced it's true.

As far as the fed goes, take a look at historical interest rates.

They peaked sometime in the 70s or 80s I believe and dropped to create growth after a crash and every time the fed tried to raise rates to get back to normal there was another crash. Then they dropped rates again. It's been a downward trend line since.

The fed has never even got close to that peak again and now we're at zero to near zero since 2008. The fed is what is causing these economic crashes in the first place.
Trucker 96
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This guy's professors who teach because they couldn't do told him so. LOL at the OP
Trucker 96
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Oldag2020 said:

BuddysBud said:

Oldag2020 said:

Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.


This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.

Look, and endless supply of energy.


That is precisely where we are. I don't believe I could have said it any better!


You do realize that he basically just described AOC plugging a power strip into itself, right? He was mocking you and you agreed with him. And I thought your OP was dumb
BuddysBud
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AG
Oldag2020 said:

BuddysBud said:

Oldag2020 said:

Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.


This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.

Look, and endless supply of energy.


That is precisely where we are. I don't believe I could have said it any better!


Since perpetual motion machines are impossible, your post was sarcasm.

You fooled many of us. Good job.
Outdoorag011
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The government literally subsidizes every single sector of the economy. A great way to hide inflation
Oak Tree
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I disagree with the OP. The federal government continuously printing money will soon lead to hyperinflation and economic collapse. Republican and Democrat politicians increase spending every year...way beyond the US government's ability to support it. History always repeats itself...do some basic research.

The replies on this thread are childish. If you disagree with the OP then post an intellectual argument or viewpoint.
Trucker 96
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Oak Tree said:

I disagree with the OP. The federal government continuously printing money will soon lead to hyperinflation and economic collapse. Republican and Democrat politicians increase spending every year...way beyond the US government's ability to support it. History always repeats itself...do some basic research.

The replies on this thread are childish. If you disagree with the OP then post an intellectual argument or viewpoint.


He's been spewing this nonsense constantly in many threads and people are naturally fed up with reading this tripe from someone who has absolutely zero experience
Sully Dog
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Quote:

"Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber oil prices were inflated, now they are correcting themselves". - Jimmy Carter
Deplorable Neanderthal Clinger
Oldag2020
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BuddysBud said:

Oldag2020 said:

BuddysBud said:

Oldag2020 said:

Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.


This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.

Look, and endless supply of energy.


That is precisely where we are. I don't believe I could have said it any better!


Since perpetual motion machines are impossible, your post was sarcasm.

You fooled many of us. Good job.


They are in fact, not impossible.

Imagine if you drilled to the earths core, shot water into that hole, and used the steam generated by the earth as a source of power. That is limitless power that theoretically can never run out. The power created by the steam could be used to perpetually power itself, making a perpetual power machine.

This in fact is currently being developed by a team of billionaire investors through one of their family offices.

I am not sarcastic. I fully believe my OP
Outdoorag011
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The fact that you believe the government is all I need to know about you.
Get Off My Lawn
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"One has to belong to the intelligentsia to believe things like that: no ordinary man could be such a fool." - Orwell
dmart90
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AG
OP has an Ag tag
Fightin_Aggie
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Oldag2020 said:

BuddysBud said:

Oldag2020 said:

BuddysBud said:

Oldag2020 said:

Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.


This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.

Look, and endless supply of energy.


That is precisely where we are. I don't believe I could have said it any better!


Since perpetual motion machines are impossible, your post was sarcasm.

You fooled many of us. Good job.


They are in fact, not impossible.

Imagine if you drilled to the earths core, shot water into that hole, and used the steam generated by the earth as a source of power. That is limitless power that theoretically can never run out. The power created by the steam could be used to perpetually power itself, making a perpetual power machine.

This in fact is currently being developed by a team of billionaire investors through one of their family offices.

I am not sarcastic. I fully believe my OP
But what happens if you are wrong?
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Trump 2024
Get Off My Lawn
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And to include OP specific criticism: just because we haven't seen a systemic crash doesn't mean everything is good nor that there haven't been losses. Falling short of an govt inflation target is even less meaningful, as it begins with an assumption that the target is good.

At the end of the day, currency represents a unit of production. When you print more, you devalued that which is already in circulation because you just introduce more stand-ins while not adding to the aggregate production. Perhaps you could argue that it's helpful to the system to keep the currency in circulation (rather than savings) but it certainly isn't something that any responsible adult should applaud as it chips away at whatever they've saved and gives them less power to pursue their goals.
Oldag2020
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AG
Fightin_Aggie said:

Oldag2020 said:

BuddysBud said:

Oldag2020 said:

BuddysBud said:

Oldag2020 said:

Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.


This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.

Look, and endless supply of energy.


That is precisely where we are. I don't believe I could have said it any better!


Since perpetual motion machines are impossible, your post was sarcasm.

You fooled many of us. Good job.


They are in fact, not impossible.

Imagine if you drilled to the earths core, shot water into that hole, and used the steam generated by the earth as a source of power. That is limitless power that theoretically can never run out. The power created by the steam could be used to perpetually power itself, making a perpetual power machine.

This in fact is currently being developed by a team of billionaire investors through one of their family offices.

I am not sarcastic. I fully believe my OP
But what happens if you are wrong?


Wrong about what? The team of investors developing this technology? Or are you referring to my OP about reasons we shouldn't worry about inflation?
Slyfox07
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AG
Dude. No.

****ing NO.
Trucker 96
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I am enjoying my perpetual energy machine while I sip on my 2nd tea
BudAg97
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OP, at least cite that wall of garbage you pasted.
Post a link.

Unless it was a result of too much Woodford.

kb2001
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The OP is all pretty much non-sensical gibberish with no basis in reality, but one line in particular is the cornerstone of Keynesian thought, and is one of the dumbest things I've read. I can't fathom how people can believe this. His username seems to mean he's class of 2020, so I can only assume he learned this at TAMU.
Quote:

Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
This is one of those almighty benevolent government tropes, where somehow when government spends the $1 it's magical and different. Nevermind the roughly 40% waste in government funded anything, where $1 of spending buys you roughly $.60 of output.

ETA- the post is written like a grade school paper as well, so this points even more to a prof at TAMU being responsible for poisoning this mind
aunuwyn08
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AG
Oldag2020 said:

BuddysBud said:

Oldag2020 said:

BuddysBud said:

Oldag2020 said:

Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.


This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.

Look, and endless supply of energy.


That is precisely where we are. I don't believe I could have said it any better!


Since perpetual motion machines are impossible, your post was sarcasm.

You fooled many of us. Good job.


They are in fact, not impossible.

Imagine if you drilled to the earths core, shot water into that hole, and used the steam generated by the earth as a source of power. That is limitless power that theoretically can never run out. The power created by the steam could be used to perpetually power itself, making a perpetual power machine.

This in fact is currently being developed by a team of billionaire investors through one of their family offices.

I am not sarcastic. I fully believe my OP
The Earth's core is going to cool into solid rock eventually, nothing escapes the law of entropy. I think the estimate is about 90 billion years, but I imagine drilling a hole to it to generate steam power would radically accelerate that timeline.
 
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