Earlier quoted context omitted.
We had someone who was attempting something like tyrannical rule between 2016 - 2020 when the economy was going gangbusters. In his infinite wisdom he passed a ginormous tax cut, and then publicly lambasted the fed chair for modestly raising interest rates. Not that administration is solely to blame for our predicament. The failure goes back even before the previous administration who had a mandate to make radical ch…
Wow, he passed a ginormous tax cut all on his own? Without the House and Senate both passing it first and sending it to him to sign?? That's extremely tyrannical! I can't believe I never heard about this, do you have any more info I can look at???
Federal Reserve raises rates by 0.75%
311–320 of 593 posts
Re: Federal Reserve raises rates by 0.75%
#312Earlier quoted context omitted.
>What we're allowing to happen here through investors buying up housing stock (and jacking up the prices), second homes, AirBnB and so on has reached the point of being a human rights violation IMHO. There are plenty of affordable places to live. People just don't want to move there. Buying a house in a hip U.S. city/suburb isn't a human right.
It's not just the hip spots anymore. This comment is pretty out of touch.
Plenty of homes available for https://www.zillow.com/detroit-mi/
Re: Federal Reserve raises rates by 0.75%
#313The 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…
>"This is turning into the West's version of Pakistan's brick kilns."
Could you elaborate on this reference? I am not familiar with this.
Re: Federal Reserve raises rates by 0.75%
#314Earlier quoted context omitted.
How does IRS win here?
Inflation is 8.6% but they adjusted the tax brackets by 3%. https://taxdude.substack.com/p/inflation-is-a-double-stealth...
You linked to someone who doesn't explain how they do the adjustment calculation. I'm assuming because the person at that substack is a bad faith actor trying to get an emotional response from people.
Here's a link actually explaining the process. https://taxfoundation.org/2021-tax-brackets.
It would appear the year over year cutoff for the calculation will lead to a bigger catch up in the next adjustment.
Re: Federal Reserve raises rates by 0.75%
#315The 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…
The US government only takes a 12.5% royalty on profits from oil and gas extraction on public land [1]. Norway has a petroleum tax of 27% and a special tax of 51% for a total of 78% [2] in comparison.
While we would generate less tax revenue per capita than Norway would, that's not the point. The point is the state should take a much larger share of the profits of extracting natural resources that state owns.
[1]: https://www.americanprogress.org/article/federal-oil-and-gas...
[2]: https://www2.deloitte.com/content/dam/Deloitte/global/Docume...
Re: Federal Reserve raises rates by 0.75%
#316Earlier quoted context omitted.
You should pay more attention. They planned to start hiking rates in ‘21 when inflation broke 2% but in their infinite wisdom they deemed it “transitory” and kept rates low and now look where we are.
To be fair, there was no war in 2021 (involving huge oil/gas/wheat exporters).
Covid and the issues that caused should have been that long awaited wake up call to slowly ramp the money printer down.
Instead, they ramped it up and now we're here. The war is not the main cause of this, but was the monkey wrench thrown in the money printer, bringing down this house of cards.
This issue was years in the making, but they were just kicking the can down the road hoping the bubble wouldn't burst on their watch.
Re: Federal Reserve raises rates by 0.75%
#317The 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…
>What we're allowing to happen here through investors buying up housing stock (and jacking up the prices), second homes, AirBnB and so on has reached the point of being a human rights violation IMHO. There are plenty of affordable places to live. People just don't want to move there. Buying a house in a hip U.S. city/suburb isn't a human right.
I can buy a plot of dirt for maybe $10k near a city with lots of jobs in my state. The problem is actually building something requires following codes and building regulations. A simple adobe house is doable by hands by a family with the occasional help from extended family or friends. But government say "bad" and I need permits, even if it's on a 5 acre plot with zero chance of any structural failure spreading to a neighbor.
Meanwhile even shithole houses go for $250k+ in part because affordable housing is simply irreplaceable due to that housing being built before such onerous regulations being implemented.
Re: Federal Reserve raises rates by 0.75%
#318Earlier quoted context omitted.
It's not just the hip spots anymore. This comment is pretty out of touch.
Plenty of homes available for https://www.zillow.com/detroit-mi/
It's alright man, we'll agree to disagree. Housing is artificially constrained by treating it as an investment opportunity. Your solution is to pick up and leave everyone and everything you know because someone else decided that housing should be used as a game at the casino.
I know it's allowed, but is this what we want for society? I hope not.
Re: Federal Reserve raises rates by 0.75%
#319The 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…
>"This is turning into the West's version of Pakistan's brick kilns." Could you elaborate on this reference? I am not familiar with this.
Brick kilns in Pakistan (and also Bangladesh and possibly other places) are a form of neoslavery [1]. What happens is that depserate people are forced to take a job but as part of that job they go into debt. The company provides housing? You'll have to pay that back. They provide food too. You'll have to pay that back.
That's the point. For most there is absolutely no escaping that debt so they can't possibly get out of this situation (hence "neoslavery").
This form of coercion is violence and that's the point of having a budget shortfall in your existence: to make you a compliant worker whether you want to be or not.
Another term for this (and what people think we're heading to) is neo-feudalism because we're getting closer and closer to being serfs effectively.
[1]: https://www.aljazeera.com/features/2019/10/21/the-spiralling...
Re: Federal Reserve raises rates by 0.75%
#320At what point does my savings account at my bank make money?