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The Economic Question Of Our Time
Have we entered a "high inflation regime"?
At this point, asking that question feels like Bill Murr
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“Nobody” — not even Recep Tayyip Erdogan — “wants a vault full of physical Turkish lira….”
It’s rare that we ever get definitive answers to the economic questions of our time.
I would say the closest I’ve come from personal experience is that tax-cut driven supply side stimulus neither pays for itself nor ever trickles down much, despite being essentially GOP dogma. And now these very same folks are making equally questionable assertions about fiscal overload, deficit spending, MMT and inflation. They could very well be right for a change, but I’ll go ahead and trust my experience that they are always wrong (at least until proven othewise).
Thank you H. Good reading in an airport. Also good reading when I am not at the airport.
Print print print more and more money. Then raise wages and raise the cost of all good and services. Then print more money. The story of our lives.
Before I am dead, the federal debt will be $200 trillion and no one will bat an eye.
I mean it would be less crazy if we implemented any sort of economic policy… spending to actually do stuff economically like grow production capacity or minimize transportation costs by building infrastructure that can accommodate the economy. But yeah if we’re just printing and letting the market decide it’s plenty happy playing games to just make the big boys wallets fat while Rome burns.
Gravity and inflation. Two great concepts we still can’t quite figure out.
As far as spending being inflationary from money creation or debt-the real question is what type of spending? Remember the federal budget does not differentiate investment spending and spending for consumption. So if the government borrows at 2% or issues currency for a project that returns 6% in benefits is that inflationary (better infrastructure for example)? If the government spends for inefficient subsidies or $500 toilets on jet fighters that is a much different calculation.