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Kamala Harris is trying to avoid the No. 1 issue: inflation

o_mlly

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I wanted to ask you about the latest economic news this morning, with inflation now being under 3%, the lowest rate since mid-2021. What is your reaction to that news?
"Do you not understand the miracle of compounding? The present is always burdened by the past."
 
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wing2000

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Zero impact? Well, only iff all that drilling produces only dry wells.

Oil wells take years to come on line....and as you well know, the oil produced will enter the global oil market...

Fleece? As in "swindle"? Did those big corps deceive you into buying their products? Or did you decide to buy, let's say, that car, dishwasher, dryer, lawn mower, etc. all on your own?

Fleece as in keeping prices high for their profits. But yes, the consumer ultimately is the one who keeps prices high by their decision to purchase.
Investment firms working against their own interests? That's novel. You do know that investment firms make less money if people cannot borrow to purchase goods and services?
That's true after a certain point. As it stands today, home buyers are competing against investment firms when buying a house.
 
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wing2000

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Shall we examine fiscal spending during the Trump Administration?

Or let's examine what will happen should Trump carry through with his threats to appoint a loyal Federal Reserve Chair who carries out his orders to lower interest rates....because...Trump feels it in his gut?
 
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Bradskii

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According to who?
Whichever poll I am reading.
Why are you so interested in American politics anyway when you are from Australia?
We take an interest in what's going on in the world. And I like America. Always have. And Americans, generally. Though there was this guy in Laramie one time...
 
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Danthemailman

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Whichever poll I am reading.

We take an interest in what's going on in the world. And I like America. Always have. And Americans, generally. Though there was this guy in Laramie one time...
Polls vary and glad to hear you like America. I liked it much better prior to 2020.
 
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o_mlly

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To be fair, the president doesn't set prices.
Biden-Harris' poor fiscal policies caused poor monetary policy and, presto, caused inflation.
In my experience, when inflation is up, prices go up.
By definition.
... but when inflation goes down, prices don't come down.
As written above, the present is burdened by the past. There is an important distinction between disinflation and deflation.
One of the negative effects of inflationary spirals is an inability for firms to enter comfortably into long term supply contracts. Suppliers must predict with greater uncertainty future costs. Their price offerings to buyers intend to protect their investors' interests in maintaining historical profit margins as a percent of sales. In doing so, suppliers offer prices that incorporate their recent history of cost increases.

I note the source of your information is a labor-oriented think tank:

The Economic Policy Institute’s vision is an economy that is just and strong, sustainable, and equitable — where every job is good, every worker can join a union, and every family and community can thrive.
I'd suggest the Kansas City Fed's study on the relationship between margins and inflation as less biased:

How Much Have Record Corporate Profits Contributed to Recent Inflation?
However, the markup itself is determined by a host of unobservable factors, including changes in demand but also changes in firms’ expectations of future marginal costs.
 
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A2SG

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Biden-Harris' poor fiscal policies caused poor monetary policy and, presto, caused inflation.
Out of curiosity, which specific policies and which specific acts caused it? And exactly how?

I admit, I'm no economist, so I may only have a rudimentary understanding of these issues.

So, does this mean you dispute the data showing corporate profits are exceptionally higher than before the pandemic?

Again, not an economist, so...

-- A2SG, but I do appreciate learning new stuff....
 
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BCP1928

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Exactly. They would have to be subject to the forces of a free market, and we can't let that happen to the multinationals that control grocery prices.
 
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Valletta

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Out of curiosity, which specific policies and which specific acts caused it? And exactly how?
The Democrats were warned that their crazy 1.9 trillion dollar Rescue Act was not just not needed, but would cause severe inflation. Kamala cast the deciding vote to break the tie. Biden signed it into law in March of 2021. The annualized cost of living went from 2.6% in March to 9.1 % by June of 2022. Joe and Kamala set a 40 year high.
 
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A2SG

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Thanks. I'll look into that.

-- A2SG, appreciate specifics, they can be rare these days....
 
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childeye 2

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Thanks. I'll look into that.

-- A2SG, appreciate specifics, they can be rare these days....
Also consider how some people would still be complaining had there been a recession or depression rather than inflation.
 
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BCP1928

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That's what happens when you give too much money to lazy poor people who won't work. That money should have been used to bail out the poor suffering multinationals.
 
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o_mlly

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Out of curiosity, which specific policies and which specific acts caused it? And exactly how?

I admit, I'm no economist, so I may only have a rudimentary understanding of these issues.
Let's start with the so-called Inflation Reduction Act, more accurately labelled as the "New Green Deal Act, so far has cost taxpayer $8.4 billion. And more is still to come.

... 3.4 million American families benefitted from $8.4 billion in tax credits to lower the costs of clean energy and energy efficiency upgrades to their homes during 2023. https://home.treasury.gov/news/press-releases/jy2521

Correctly stated, the bill reduced tax revenues $8.4 billion.

Note that the bill, like many others, benefits only a few taxpayers (2%) while spreading the cost to the many (168 million taxpayers in 2023). The average benefit to the lucky few is so far ~ $2500. But stay tuned the real cost to all taxpayers may be as high as $1.2 trillion.

The Inflation Reduction Act may go down as one of the greatest confidence tricks on taxpayers in history. Democrats used accounting gimmicks to claim the partisan law would reduce the budget deficit. But now a Goldman Sachs report projects its myriad green subsidies will cost $1.2 trillion—more than three times what the law’s supporters claimed.

Now, if Biden cut other programs to pay for his green new deal, no effect on inflation. But he didn't. So, the Treasury's shortfall in revenues must be funded by additional borrowing, and the Fed will finance that additional borrowing by increasing the money supply. Inflation results.
 
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Ana the Ist

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Well let's base the economic data on what you experience, eh? Let the fact that you think 'it's bad here' dictate government policy, shall we? Do you think that's a good idea?

Yes.

It's basically the fundamental nature of a democratic republic.

If someone does poorly....you remove them. If they do well, you keep them.

You can in fact judge it by "how things are" in your nation.
 
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Ana the Ist

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Do you know that we have had arguments in this thread saying that even a 20% wage increase in the last 20 months meant that they were still worse off? That's simply not credible.

Who got a 20% wage increase?



It's better than sticking your nose in other people's business.
 
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Ana the Ist

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Great question. Big corporations are certainly opportunist. Anything to raise prices. How do you get them to cut prices now? I have no idea.

Stop buying.


I'm sure Harris has a plan. A great plan. Trump too. Just vote for the right party and all your problems will just melt away!

An optimist.
 
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Valletta

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Grocery prices are so high much because of the huge increase in energy prices (groceries have to be transported), the Biden/Harris regulatory environment (which raises prices all around), and the trillions of dollars of Democrat program spending. The EV push was a disaster. Now Kamala wants to put on price controls. That's would create chaos in the economy.
 
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