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Inflation: Chapter 1 of Economics 101

If you constantly find yourself WRONG on the subject of inflation, don't be so hard on yourself. Liberal presidents like Nixon, Ford and Carter had no idea either. Ford made us all laugh with that Inflation Piggy commercial, where he blamed inflation on the consumer, people who wanted more things. They were piggy. And that somehow created inflation.
Most of you weren't born in the last century, so you don't have a knowledge base for this. I lived through the Nixon/Ford/Carter monetary disasters, so I know what I'm talking about. Plus, I ACED the Economics classes in College.

1st Rule: The law of supply and demand.
a. If supply stays the same and demand goes up, price goes up.
b. If demand stays the same and supply increases, price goes down.
There is supply and there is money to buy it with. If supply stays the same but you have more money, DEMAND will happen.
Gee! Where have we heard that before? Oh, yes! Keynesianism. The DEMAND SIDE economics of John Maynard Keynes, a British mathematician who pretended he was an economist.
Where did DEMAND SIDE first happen? The New Deal, of course. With ZERO expansion of the economy, FDR FLOODED the money market with dollars. Inflation got so bad that he had to LIE the United States into a WAR in order to bail out the economy he made worse.

2nd Rule: Money supply goes up and DEMAND goes up. If SUPPLY of goods stays the same, PRICE GOES UP.

Yeah, conservatives want to blame the Johnson Administration for all the welfare spending, but even with the Vietnam War chugging along and sucking up tax dollars, the federal budget last balanced in 1969.

What did Nixon do that inflicted so much damage on the economy?
Two things:
A. Took the world off the Bretton Woods Gold Standard in the early 70s. OPEC warned him not to do that because oil stocks are traded in US Dollars, (which is the world's reserve currency.) Sure enough, the FIRST effects of his war on the US dollar was the OIL SHOCKS of the early Seventies. Most of you might ask your grand parents about the earliest gas lines around 72-73. The idiots in Washington tried to claim there was a fuel shortage.
(Yeah. They ACTUALLY said that.)

B. Signed the Budget And Impoundment Act, which put Federal Entitlement Spending on AUTOMATIC INCREASE each year. (In case, some LYING GOOSE STEPPING DEMONAZIS try to accuse Republicans of cutting Social Security or Medicare, you now know that is impossible without an act of Congress, overturning that law.

Most of the Seventies afterward was a tale of skyrocketing costs, bad economies and the famous MISERY INDEX. Yeah, Carter inherited a lot of that, but his policies made it worse.

What did Reagan do to fix things? Well, his educational background was unique. He got a Bachelor's Degree in ECONOMICS and Sociology from Eureka College. He may be the first president with an actual ECONOMICS background.
Throughout the late Seventies, he made use of the finest economists of the time. (You can find this in detail in Robert Barltley's "the Seven Fat Years, and How To Do It Again." (Bartley was a Wall Street Journal Editor.)
Brilliant economists like Art Laffer and MIlton Friedman helped Reagan craft an economic course which would save the economy.

3. SUPPLY SIDE ECONOMICS. Idiots with zero economics education just call that tax cuts for the rich. (It's scary that these idiots vote.)

Remember DEMAND SIDE, where money flooded the economy, increasing demand. The law of supply and demand follows.
In SUPPLY SIDE, the goal was to increase the SUPPLY of goods.
Supply goes up. Demand stays the same. Price goes down.
The Reagan tax cuts created an expansion of the economy that was unheard of. Jobs sprouted everywhere. Companies appeared everywhere, all with large supplies of goods.
The Federal Reserve continued to tighten the money supply so there was a recession in 1982. It was around late 83 when most of the inflation had been wrung out of the economy.

The results were miraculous.

https://www.heritage.org/budget-and-spending/heritage-explains/the-real-story-behind-inflation
Burnley123 · 41-45, M
You lost me on the Nixon being a liberal bit.
Reason10 · 70-79, M
@ArtieKat Actually you ARE wet behind the ears. I presented facts and factual and reliable sources to back them up. If the diploma mill that printed out your Sociology degree didn't mention the great economists (Ricardo, Von Mises, Hayek, Friedman, Rothbard, Rand, etc) you are forced to work at McDonalds to pay for a useless degree.
Northwest · M
@Reason10
I presented facts and factual and reliable sources to back them up.

In your imagination. Not here. But it may be the same thing to you.
@Reason10 “Liberal” defined as anyone to the left of Jefferson Davis.
Reason10 · 70-79, M
How did Biden/Harris create the INFLATION that is crippling our country?
https://www.nbcnews.com/politics/congress/house-set-pass-1-9t-covid-relief-bill-handing-biden-n1260393

Congress passes $1.9TRILLION Covid relief bill, with $1,400 checks, in major win for Biden

The economy in 2020 was SLOWLY recovering. But injecting $1.9 TRILLION NEWLY PRINTED DOLLARS into the economy created the WORST inflation of all time.

Remember. Supply stays the same, dollars increase demand, PRICE GOES UP.
DogMan · 61-69, M
@Reason10 It's really much simpler than people realize. But it is always blamed on people
that make more money than they do. They believe that for someone to get rich, they TAKE
from someone else. which in reality, the rich are the ones that employ people, and make them
richer.
@Reason10 Inflation is back to the historic average.
ViciDraco · 36-40, M
This, folks, is a great example of theory not aligning with practice. Raw theory peppered with propaganda to paint history in a completely different light than how it actually happened. Sourced link leading directly from the propaganda engine that wants to bring us conservative flavored fascism, no less.
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Reason10 · 70-79, M
@DogMan Same here in Florida.
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whowasthatmaskedman · 70-79, M
Most of what you say has merit. As far as it goes. But you did miss a couple of valid points. First, that the moment any administration tickers with the law of supply and demand by applying subsidies, barriers to entry or tariffs, the whole thing goes out the window. And second, that sooner or later everything has to be paid for, plus interest. And the US continues to mount up $Trillions every year in debt to other countries.. 😷
Reason10 · 70-79, M
@whowasthatmaskedman This isn't about the overall economy, (which anyone who isn't brain dead can see clearly this one is way inferior to Trump's.) This is just the definition of inflation and the economic causes of it.
whowasthatmaskedman · 70-79, M
@Reason10 I am so sorry to hear about the demise of your brain..By your logic, if you support yourself selling brushes door to door, but take out a new credit card every month and max it out to buy groceries and pay your utilities, then do the same next month, thats a great economic outcome. Because thats what is happening every month..😷
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SunshineGirl · 36-40, F
And they all lived happily ever after! 😂
MethDozer · M
Reagan fixed things.🤣
Milton a great economist.🤣


Their policies are the sole cause of our problems today. The 80's were terrible in terms of poverty as well. But hey, as long as investors see record profits and constant growth it's all good


You lost as soon as you quoted the Heritage Foundation.
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MethDozer · M
@Reason10 all you are capable of is strawmaning. You just did it again
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Reason10 · 70-79, M
@Northwest @Northwest
You are sadly ill informed.

For starters, Trump signed two pandemic relief bills totaling nearly $3 trillion in his final year in office. Why aren't counting that? Ignorance?

Trump was forced BY THE DEMONAZIS to sign a HUGE spending bill to avert a government shutdown.
https://www.foxnews.com/us/president-trump-signs-covid-relief-spending-bill-averting-shutdown-so-what-happens-now

President Trump’s Sunday night decision to sign the combination COVID relief/government spending plan averts a shutdown tomorrow night. The government was funded through 11:59 p.m. Monday. But Mr. Trump’s signature means the government is now funded through September 30, 2021.

The President railed against the combination package last week – even though the final plan was negotiated by the top four bicameral, bipartisan Congressional leaders and his own point man Treasury Secretary Steve Mnuchin.


You mean the hole riddled piece he copied and pasted from the rag that pretends it's a solid economic sounding board?

I gave SEVERAL credible sources. It's not my fault you lack the education to be able to read them. Your BLUE STATE nose picking ignorance barely prepares you for comic books.
Northwest · M
@Reason10
gave SEVERAL credible sources. It's not my fault you lack the education to be able to read them. Your BLUE STATE nose picking ignorance barely prepares you for comic books.

😂 So, they made Trump sign a bill he did not want to sign. Got it.

But it's clear why you think you gave references. You're giving references to excuses. Like this one.

So if Biden is responsible for inflation, because he signed a $1.9 T bill, what does that make Trump, who signed a $3 T bill?

I know you put in a career as a substitute teacher, teaching kids how to type (which by the way you thought qualified you as a computing expert), but let's assume you understand basic arithmetic.

$1.9 T = inflation.

$3 T = inflation divided by 1.9 and multiplied by 3 = 1.57 Inflation. So, we now have it documented that Trump caused 1.57 X more inflation than Biden. Numbers don't lie.
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Reason10 · 70-79, M
@DogMan What people do not realize about subs is the fact that we work solely on the lesson plan the teacher lays out. And we get to pick and choose what class, what school to sub at.
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