Sounds like an excellent stock market crash trigger to me.
And 5% would be just a beginning; the US income tax started at 1%.
Almost as brilliant as first spending a ton of money and then figuring out how to pay for it.
It can never be paid for. The debt will have to be inflated away.
Politicians don't see past the next election, so they borrow money to give to people to buy their votes.
That's precisely the case. The problem is that the US dollar is still the reserve currency on the planet and your massive inflation will be exported from the US. This is the key technical difference between the US and Zimbabwe Federal Reserves.
Best regards, Piotr
If you exclude the weight of used cars in the CPI, the core US CPI has been increasing at 1.8% annual rate since the pandemic began, which is below the Fed's target rate.
Only thing that sends Mr. Larkin into a panic is billionaires being taxed.
Have you considered just not worrying about it?
I think that home prices should be excluded too. Maybe they already are. Around here any home worth living in usually has a bidding war and sells for more than the listed price.
Which shows you how useless the official CPI is. Lots of things are up
20 or 30% since the pandemic spending began. Lumber, ammo, food, useless stuff like that.
Somebody just bought a house here for $44 million. A house on Lake Tahoe recently sold for 55.
Nothing has ever sent me into a panic. I was born without that facility.
I just think that jealousy is bad economic polocy.
Even libertarians are from time-to-time scrupulous to point out that the fortunes of history's rich and powerful were in the main, stolen.
Old Parenti classic called "there are no poor countries":
I did a search on Zillow for the nicest single-family home you can buy in Rhode Island, for under $200,000. This is it:
This is the runner up:
Yeah, I can see why millennial aren't chomping at the bit to get in on owning a home...
I was buying gas for 99 cent a gallon with a few rewards points circa April 2020, good for me but deflation isn't much fun for retailers, either.
1970s inflation was associated with a sharp drop in productivity that doesn't seem to have happened.I went to the nearby megamall that I used to go to in the 90s, it looked like it was dying before the pandemic. Still does, at least if you wander around the mostly empty top floor, but if you stay on the ground level you might be able to convince yourself it was still the 1990s on a Friday night.
Rich people often got that way by building stuff or financing it. Cars, railroads, planes, ships, steel, electric utilities, oil refineries, hospitals, newspapers. The result of capital concentration has been a huge benefit to the general population.
Poor people don't build tractor factories. They borrow from greedy banks and buy tractors and increase their crop yields by 50:1.
Equality of income gave humanity 35 year lifespans. Greedy capitalism doubled that.
How about "Venezuela is rich." "Cuba is rich." "North Korea is rich."
Or were.
It's a little bit more complicated than that.
Electric utilities and hospitals work rather better as service organisations rather than profit generators. Capitalism isn't a great way of running natural monopolies.
Actually, they do - rich people may take part in the process, but they don't put in most of the hours worked.
Poor people find it difficult to borrow money from banks. You need to own (or at least rent) quite a lot of land before a tractor becomes a good investment.
It wasn't equality of income that produced 35-year life-spans, and greedy capitalism isn't what drove the agricultural revolution.
US life expectancies are rather lower than those in other advanced industrial countries, all of which are more careful to reign in the rapacity of greedy capitalism.
The free market is a useful tool, but - like all tools - it has to be used carefully.
Boy, the Deep State's never gonna forgive Cuba for the Bay of Pigs, are they. They had the victory medals all stamped out n everything!
Snark needs much less thinking than thinking does.
I wonder who told John Larkin that? He can manage snark, but thinking does seem to be beyond him.
Cuba is shooting for 60% efficacy of their indigenous vaccines, which if successful would be a major upset for the German's most recent effort.
Probably will be. When the Germans screw something up...
What is it that the US has it with Cuba ? Almost every country in the world we have trade relations with and even give them money.
Must be there is no oil there or anything else the US thinks we can use from there.
Starting back relationships with Cuba is about the only good thing I can say about Obama.
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