Trump and Tax Cuts

And that means nothing really with regard to this subject. Tax cuts work in the medium term and long term. But inflation is something that Biden caused. I just want you to tell me what specifically caused the current inflation.
Is it it a supply chain thing? There is NO building to speak of, so what on Earth is causing this inflation?

It has to be something policy driven... what is causing it?

 

In 2023 Rick said devaluation causes inflation

In 2024 he is saying devaluation is good

Did Rick ever clarify this discrepancy?

 

https://oversight.house.gov/wp-content/uploads/2023/03/inflation_testimony_mkonczal_current.pdf

Shift from services to goods
Supply chain shocks
Housing market/work from home
Russia invading Ukraine
Tight labor market
Corporate profit gouging

 

And your side proposes to mint a platinum coin and stamp a $1T number on it to end our debt. They actually believe we cannot go broke by printing cash forever. Nevermind that doing that would 100% guarantee hyperinflation and yeah that $1T coin might buy you a loaf of bread.

 

Please Rick, explain how Biden caused what is basically global inflation, but the US has lower inflation than most of the industrialized world.

 

A. No, it doesn't "have to be something policy driven." Inflation isn't always driven by policy.
B. There likely is some interaction of policy and non-policy, but often in ways that you won't like.

So let's explore this. You had a massive pandemic hit all over the world. This has a few important effects:
1. A substantial cut in worldwide productivity/economic production. Much of the world had substantial declines in productivity in 2020. This led to cascading effects through a supply chain (e.g., even if your cell phone factory is open, you can't build phones if you can't get boards due to shutdowns in the sourcing plant).
2. A substantial amount of excess death. Millions around the world died.
3. A temporary halting of migration.
4. An increase in retirement rates for older workers in developed countries.
5. An increase in government fiscal spending starting in March 2020.
6. Strong shifts in prices for different products, leading to odd results like temporary negative oil prices.

So you had a goods shortage, a labor shortage, and a policy of limiting downward effects on demand. This led to inflation.

You want to solve it? Well, the goods shortage has already worked itself out. Supply chains are functioning again and inflation for goods is roughly in line with targets. The labor shortage is getting closer to sorting itself due to migration. Because of dumb laws, we chose to do so in an expensive manner, and we could see a policy shift to bring it back on, such as deporting a bunch of people we need for labor, but it is starting to approach a market in mild shortage rather than the severe shortages of the last few years. Much of the fiscal spending has already ended. So, it is largely about not purposefully causing inflation going forward at this point.

 

What side would that be? Last I checked the Obama Treasury Department rejected that proposal. I don't think it has been brought up in a serious manner since then (although it could be a method used by the Trump people to accomplish their goal of devaluing the currency). I just looked it up and Yellen rejected the concept as recently as 2023.

So what do you think about purposefully devaluing the currency as Trump's VP and top trade advisor have proposed?

 

Following the Hugo Chavez playbook. What could go wrong?

 

"We are going to build lemonade stands. The biggest lemonade stands. My people tell me that they will be beautiful lemonade stands. People tell me all the time, when Biden gave us lemons, you gave us lemonade stands. With American kids in our neighborhoods running them and mark my words, We will make Tropicana pay for it."