Post Covid Economy, Taxes & Inflation (1 Viewer)

[Steve R.]

BREAKING NEWS.... Channel 5 in Los Angeles just announced inflation is on the way and business will likely pass the higher costs onto the consumers. Lol, ya think? When the government offers you $1.400 of your own money but you have to pay back $5.600 watch out.

As my wife always says "the only free cheese is in the mousetrap" ouch.ly

A very good question. I'm finding the economic news to be baffling, in the context of it being removed from (concrete) reality. Opinions, at this time, are essentially premature since economic trend data is "unclear" and frustratingly lacking "correlation".

As one anecdotal observation (non-scientific of course), eating out seems to have been impacted by inflation, in that it has gotten more expensive. Nevertheless, as you drive-by many establishments (fast food, a primary example), they have "help wanted" signs out, yet the US unemployment is 6.0%. So why aren't these people flocking to work? A reason put forward, is that many people are making more money by staying at home since they "make" more money with free government money in the form of stimulus and unemployment checks. This is a severe economic dislocation.

Even the recent speculative stock action on Game Stop, has been attributed to the flood of free money being released through the stimulus checks. Essentially, "I've got free money to play with, so what can I do?" I'm sure that some of that money did go into buying consumer goods as intended, but once a person has possession of that money that does not mean that they will spend it in the intended manner. Another example of "free" money having an adverse effect on the economy as it is not being used for generating economic growth.

This week, companies are continuing to release earnings reports for the first quarter of 2021. Since the data is not yet available, can't really comment.

The price of gold is usually correlated to inflation. So far it quizzically has not moved. However, the price of bitcoin has taken off and it has been extremely volatile. Based on this, some financial pundits believe that bitcoin is replacing gold as the inflation hedge. Wethere this viewpoint is valid or not, I don't know. But it does point a economic "evolution" which may not yet fully appreciate.

Biden is supposed to speak before Congress on April 28, 2021 where he will outline his taxing proposals. Currently, the opinions disclosed are basically rumors. Nevertheless, they are troubling if the rumors are valid. As many have expressed, what is the point of increasing taxation if the government is going to be passing out "free" money? ("the only free cheese is in the mousetrap"). Why not just eliminate taxation to achieve the stimulus effect? The hidden agenda reason by the Democrats is to achieve wealth re-distribution. Rob from Paul to pay Peter, under the guise of taking from the rich to give to the poor. That is not how capitalism is supposed to work.

But lets go a bit deeper into the murk of the Democratic taxing proposals. One of the standard mantra's of the Democrats taxing proposals is to have the rich pay their "fair" share of taxes (Democrats conveniently leave out that approximately 60% of Households pay no income tax.) On that news, many corporate leader have been quoted as agreeing with the need to raise income taxes. This presents a logical conundrum. Why would they publicly support such a tax increase, if it would hurt them? My suspicion is that their claimed public support is simply virtue signaling since they feel that they would be (secretly) exempted from any tax increase through "carve-outs". The Democrats "won" the election through the support of many executives in the corporate world, so they would be looking for payback now that the Democrats are in charge. This payback trend has been made evident in the recently passed stimulus bills which contained many "carve-outs" for left wing causes, government pensions, and unions. Rumors abound that the new taxation laws will contain subsidies for projects implementing "Green New Deal projects", which would benefit the rich, not to mention promote fraud (Solyndra).

Even leaving out the conspiracy angle above, the rich may not feel threatened by a tax increase as they will simply use their corporate power to pass-on their tax burdon to the poor through increased product prices which we will see as "inflation".

 

[AccessBlaster]

Biden claims that he will not raise taxes on anyone earning less than $400.000. That statement is patently false when you adjust for inflation. When inflation begins to rises it hurts the poor and the "middle class". Printing trillions in new dollars causes inflation coupled with higher corporate rates is a double whammy for the consumer. The poor and middle class will be paying higher taxes one way or the other.

 

[Pat Hartman]

Biden claims that he will not raise taxes on anyone earning less than $400.000.

For all those who believe that, I have a bridge for sale.

 

[Steve R.]

As an add-on concept; Biden is aggrandizing the "Nanny State". What happens when the stimulus money runs out and the unemployment entitlements expire?

Anticipate outrage from those currently receiving the benefits who will no longer be be receiving them and the faux outrage from the media with an endless tirade of human interest stories of the suffering by those no longer receiving those benefits. Essentially, the Democratic mantra will repeat the student loan scandal narrative that these people need to be "saved" by the government.

The Democratic may resurrect the "universal basic income" concept to "save" those suffering. This may be another attempt by the Democrats to "buy" an election. Consider that the next Congressional election will occur on November 8, 2022.

As an editorial aside to Biden's advancement of a "Nanny State"; "But Biden said at the White House that he’s not yet comfortable saying people can hold small outdoor gatherings on Independence Day." Biden is not our parent, who can through the power of government, tell us what we can or cannot do. Because that, Biden's remark are a form of intimidation.

 

[Pat Hartman]

I want to know when the Dems are going to publish their version of the Little Red Book.

• "A revolution is not a dinner party, or writing an essay, or painting a picture, or doing embroidery... A revolution is an insurrection, an act of violence by which one class overthrows another."

The American people are being threatened by their elected officials. Conform or we'll punish you. We are experiencing the Cultural Revolution but it is being pushed by nameless, faceless people behind the scenes. No one would follow Biden anywhere, let alone over the cliff of Communism. Socialism is a bridge too far for most Americans but they've allowed themselves to be cowed by fear and have proven that they're willing to trade a false sense of security for freedom.

Take a look at the cultural rating system in use in China. Do you really want that to be employed here? Agree to a COVID "passport" and you've got it. Big tech is ramping up to lock us in chains.

 

[Isaac]

In a strange twist, and as much as I obviously love and believe in this country and wish for its preservation, every now and then I get an almost-humorous twinge of wishing for just a moment that I could be part of a nation of serious people, who have not become overly distracted by theoretical imagined offenses and other nonsense (a nation of silly people, as Maher said), a nation where plain old meritocracy is still valued above most all else. We have begun to drift dangerously toward a climate where meritocracy is gone, and too many are demanding that they be handed guaranteed identical results as their neighbor, rather than focusing inward on what they can do (that their neighbor did too) to get there.

Virtually anyone can be successful in America, depending - as always - on a consistent and sequential string of reasonably decent choices, even with a few deviations along the way.

 

[Steve R.]

Still have my "Red Book". I've been thinking of reviewing for some applicable quotes.

 

[AccessBlaster]

Big tech is ramping up to lock us in chains.

Like the Matrix, we are born into bondage we just don't know it.

 

[Isaac]

Back then, they always touted Obama's skills as a Community Organizer. I think we need a lot more of that on the conservative side. We have almost half the country (or more) seriously disturbed as to where this country is going, but we don't organize and collaborate well enough, IMO. Or at least it doesn't appear that way. Maybe?

 

[Steve R.]

Back then, they always touted Obama's skills as a Community Organizer. I think we need a lot more of that on the conservative side. We have almost half the country (or more) seriously disturbed as to where this country is going, but we don't organize and collaborate well enough, IMO. Or at least it doesn't appear that way. Maybe?

Actually, a while back, you answered this very question. From what I recall with your answer, the Democrats know how to use "emotions" for their own advantage versus the Republicans using "logic" which does not sell well. For example, the Democrats are able to "sell" deficit spending under the guise of "investing" in abstract desires that have universal appeal, such as education and health care. Republicans on the other would want programs such as education to be paid for. That could mean raising taxes, which tends to be a "turn-off" even if obvious. Recall George H.W. Bush's no tax pledge which he broke (back in the day when budgets actually mattered). Instead of getting complemented for that necessary action, he was vilified and lost his re-election bid. Whereas Biden, by offering "free" government money was able to "buy" this past election (not to also mention the potential of election fraud.)

You are correct that Republicans need a "Community Organizer". The problem is that conservatives think independently versus the Democratic herd mentality, or as I like to characterize their Borg mentality. On one level, one can appreciate the likes of Romney, McCain, Flake, Murkowski, Collins, and Flake demonstrating "independence" but in doing that they have at times shot the Republican agenda in the foot. Democrats, amazingly don't have a problem with their caucus blindly following party dictates. It is unfortunate that some of the Republicans, when asserting "independence" have given the Democrats an unearned win.

.

 

[Isaac]

That is well stated and I agree. Add to that, people who view accomplishing their goals as "mostly" or "all" dependent on their own personal choices naturally are not prone to banding together to collectively "demand (i.e., bully / extort) "change".

But ironically, I think the survival of a country built on principles of individual responsibility, opportunity and self-sufficiency might only be able to be preserved by those otherwise-independent spirits banding together to make it so.

 

[CollaTech]

"The price of gold is usually correlated to inflation. So far it quizzically has not moved. However, the price of bitcoin has taken off and it has been extremely volatile. Based on this, some financial pundits believe that bitcoin is replacing gold as the inflation hedge. Whether this viewpoint is valid or not, I don't know."

I'm not an expert in the finance field, but as I can see, we can beat inflation by bitcoin and cryptocurrencies. I read that Pornhub is interested in crypto and I guess, this is already a catalyst.

 

[harpygaggle]

"The price of gold is usually correlated to inflation. So far it quizzically has not moved. However, the price of bitcoin has taken off and it has been extremely volatile. Based on this, some financial pundits believe that bitcoin is replacing gold as the inflation hedge. Whether this viewpoint is valid or not, I don't know."

I'm not an expert in the finance field, but as I can see, we can beat inflation by bitcoin and cryptocurrencies. I read that Pornhub is interested in crypto and I guess, this is already a catalyst.

Actually, crypto is now the only option to pay for Pornhub premium subscriptions after Mastercard and Visa deny merchant services to the website. They processes payments through crypto payment service provider Probiller.

 

[NauticalGent]

It's called the "Great Reset" and it should scare the ever-livin-doggie-doo-doo out of you.

 

[NauticalGent]

Socialism is a bridge too far for most Americans but they've allowed themselves to be cowed by fear and have proven that they're willing to trade a false sense of security for freedom.

Boiling frogs

 

[Steve R.]

Below is a nifty link to an interactive labor participation rate graph.

Civilian labor force participation rate

www.bls.gov

Below is a link to the U.S. Bureau of Labor Statistics.

U.S. Bureau of Labor Statistics

The Bureau of Labor Statistics is the principal fact-finding agency for the Federal Government in the broad field of labor economics and statistics.

www.bls.gov

Today, the unemployment rate, labor participation rate were released. These results were considered "disappointing". But the comments of Larry Kudlow and Peter Morici appear to be most relevant. They basically called the data a "statistical anomaly one-off", as in temporally inaccurate and does not mean much. So we can't yet blame Biden for killing the economy.

U.S. employers added just 266K jobs in April as hiring slows; debate over incentives heats up

The U.S. added only 266,000 jobs in April, the government said Friday, far below the 1 million that economists predicted amid the COVID-19 vaccine rollout and gradual recovery from the pandemic.

www.washingtontimes.com

 

[Isaac]

I wonder if a government is like a regular individual or family - as long as you keep borrowing more money and adding to your debt, you can fudge anything to make it look like things are OK. And you can even help others do the same thing! (Now Biden is thinking of paying Mexicans to plant trees. I mean, you can't make this stuff up! I know it sounds like I am joking, but I am not).

 

[Steve R.]

At the noon hour, Biden spoke on the jobs report. Biden speaking out of both sides of his mouth in an incomprehensible manner. On one hand claim that his policies were leading to a recovery, but on the other hand saying that we had a long way to go. And using his long way to go theme, as an excuse to promote continued massive deficit spending.

The graphic below is from the New York Times. The graphic unfortunately cuts out showing the Trump administration's successful job creation efforts prior to Covid (March 2020). According to Statista, in 2016 there were 123.76 Million people working. This grew, based on the Times graph below to 152.5 Million people by February 2020. A net gain of 28.74 million employed.

Nevertheless, the graphic does show that jobs were strongly returning prior to Biden assuming office in January 2021. So the recovery was well underway before Biden's policies were even a contributing factor towards recovery. Additionally, based on all the "help wanted" signs, Biden's massive handout of "free" money may be hindering economic recovery.

Stocks Hit Record Even as Jobs Report Disappoints (Published 2021)

www.nytimes.com

Number of full-time employees U.S. 2023 | Statista

The number of full-time employees returned to pre-pandemic levels in 2022 after a sharp decline in 2020.

www.statista.com

 

[Isaac]

The graphic unfortunately cuts out showing the Trump administration's successful job creation efforts prior to Covid (March 2020). According to Statista, in 2016 there were 123.76 Million people working. This grew, based on the Times graph below to 152.5 Million people by February 2020. A net gain of 28.74 million employed.

These liberal media journalists are hilarious. I'm picturing little Ella literally having to cut rows off of her Excel spreadsheet to make the graph fail to show the Trump boom - crazy stuff

 

[Steve R.]

In the video clip below, Tucker raises numerous questions that need to be researched concerning the economy. Of particular note: Tucker observes that we have simultaneous high unemployment with numerous employment vacancies. These contradictory statistics imply that something is wrong with the economy. As we have previously noted in this thread, people are being payed to stay home. The Tucker Carslon video clip is at the bottom of the page.

Tucker also delves into the concerns of inflation and consumer product shortages. While I have observed some nominal inflation and nominal consumer product shortages, I have not yet developed a strong belief that these can be fully attributed to the economy being flooded by free $$$$. Some of this, is an after-the-fact "headache" from the economic dislocation resulting from Covid. For example, shifting manufacturing production to masks and hand sanitizers resulting in paper product shortages and shortages in the availability of many household cleaning supplies. When my wife and I can't find a consumer item that is normally always available in the grocery store we jokingly refer to this as being equivalent to living in the old Soviet Union. Soon we may no longer be joking. With the Covid pandemic being ameliorated, manufacturing should be trending back to normal. However, the economy is now being flooded with free $$$$, which will eventually result in "new" economic dislocations, one of them being inflation.

One emerging shortage, has been a shortage of computer chips that are necessary for car production. Why this is occurring or even if it has any relation to Covid manufacturing is unknown to me. Additionally, this shortage has been simmering for a while, so it is also unknown if it has anything to do with flooding the economy with free $$$. The Tucker Carslon video clip a bit further down.

Here Are the Models That Are Being Affected by the Chip Shortage

Some big names have temporarily stopped or cut back on production because of a worldwide semiconductor shortage, including the Ford F-150, the Jeep Grand Cherokee, and the Mercedes-Benz C-class.

www.caranddriver.com

Tucker: Americans are being paid to stay at home | Fox News Video

'Tucker Carlson Tonight' host reacts to 'troubling' April jobs report

video.foxnews.com