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
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
