441–450 of 593 posts
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I hope you get shown similar sympathy when your house value crashes
I don't view housing as an investment. I look at it as I need a place to live. If I make money on it after I'm done living there then that's great.
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> pensioners Are US pensions not tied to the CPI or some other inflation measure? (In Germany, pensions are, in principle, tied to the development of wages, which are generally assumed to outpace inflation.)
Yes, Social Security is indexed to inflation. You can also buy a certain amount of I-Bonds that are tied to inflation and are paying very nicely nowadays. Tax free too.
I bonds are not tax free.
They can be tax-deferred, and some (educational) uses of interest gained can be tax excluded, for some people.
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They have debt, but they also have work contracts with out of date wages. But even in our sector, with the leverage that we as programmers have, companies don’t bother to match inflation. You have to make some risky or uncomfortable move to renegotiate your wage or find a new job. For many people it can be worse. So, everyone is under additional financial stress.
Inflation forces people to seek new jobs every few years. That is not necessarily a bad thing. The alternative is to have your boss decide for you when he wants to fire you.
Just for fun, I thought I’d do the math on deflationary economics:
#!/usr/bin/env raku
use v6;
multi sub deflate($n, $r, $y)
{
my $m = $n;
loop (my $i = 0; $i Assuming an average inflation rate target of 2% per year (per the Fed) and an average GDP growth rate of 0.25% per year, your real purchasing power would grow by about 25% per decade.
Under this scenario, you could mimic a universal basic income of $1000 per month upon saving a total of $480,307.
Bonus: your monthly “UBI” could never be shut off by your government.
If you've come here for informed commentary on economics, so far it seems the comments section is about par for the course by internet standards. If you're looking for informed professional analysis, I highly recommend the Inside Economics podcast by Moody's Analytics[0]. They post at least once per week and they often discuss recession odds, they break down the causes of inflation, and regularly host industry expert…
If you've come here for informed commentary on economics, so far it seems the comments section is about par for the course by internet standards. If you're looking for informed professional analysis, I highly recommend the Inside Economics podcast by Moody's Analytics[0]. They post at least once per week and they often discuss recession odds, they break down the causes of inflation, and regularly host industry expert…
Economics is the lies told by some middle class assholes with a degree and/or credential that get paid just enough by upper class assholes to trick low class rubes.
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Sales tax, property tax, fees, etc are a rounding error essentially and are local. At a Federal level they are meaningless. Saying that I'd be all for a Federal sales tax of 20% if we could nearly eliminate income taxes.
Why? That puts more of the tax burden on those with the least
Contrary to popular belief, the so called utopias like Sweden, tax the poor at almost comparable rates as the rich.
The Fed clearly doesn't understand how to MMT properly. What J Powell was supposed to do her was to raise the income tax rate.
2. You're assuming that Powell agrees that MMT is the right answer, which is definitely false.
3. You seem to have the idea that Powell has some control over the income tax rate, which is totally false.
The returns that capital demands (and the government obliges to) are ultimately unsustainable. That's the core problem here. Rising wages? There has been no meaningful real increase in wages in 40 years despite a massive increase in productivity. Profits keep going up and up. The expectations for profits keep going up. The problem here is that the people who make companies possible don't get to share in the proceeds…
The Norway example is really annoying. It keeps coming back as an example to follow, when everybody knows it is a complete outlier that cannot be reproduced elsewhere. Norway is sitting on a gigantic pile of offshore gas that it uses to generate massive profits that go into a huge fund they don't know what to do with, all of that for a 5M population that drowns into social programs. There is literally no country in t…
Do you have anything to back this claim up? Most of what I've searched about the Nordic countries in terms of innovation seems to disagree with this assertion.
https://voxeu.org/article/nordic-innovation-cuddly-capitalis... https://www.ft.com/content/e3c15066-cd77-11e4-9144-00144feab... https://www.globalinnovationindex.org/analysis-indicator
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takes guts to do this and it was needed. Problem is that it will expose that most of the US economy is a sham that needed 0% interest rates to even fake growth. our "leaders" have been kicking the can down the road for a long time. US economy used to grow even with very high interest rates, now even a slight increase puts us into a recession.
Is this because of the transition to a service economy?
We've stopped reinvesting our profits, essentially.
The returns that capital demands (and the government obliges to) are ultimately unsustainable. That's the core problem here. Rising wages? There has been no meaningful real increase in wages in 40 years despite a massive increase in productivity. Profits keep going up and up. The expectations for profits keep going up. The problem here is that the people who make companies possible don't get to share in the proceeds…