Inflation is back. Biden should be worried
- Thread starter DEAD7
- Start date
ogc163
Superstar
ogc163
Superstar
I don't see how this brand of economics is sustainable into the future. This would cause an uproar politically. I guess this is why the fed is somewhat private
mastermind
Rest In Power Kobe
It’s not popular now, except with rich people and major corporations. It’s insane that’s even been considere.
ogc163
Superstar
The Fed is stuck between a rock and a hard place, they can't sit back and let inflation stay at current levels as the negative consequences are too plentiful.
The fed can only do so much and if unemployment remains historically low, demand(the thing that is causing inflation) isn’t going away
Why would the rich and corporations want their access to cheap money and see increases in cost of capital? Also seeing their business valuations Increase due to lower opportunity costs from low rates?
Business in aggregate were the absolute beneficiaries of zirp.
Outlaw
New Hope For the HaveNotz
Why isn’t more effort being done to increase supply?
Outlaw
New Hope For the HaveNotz
Yes a concentrated effort in increasing the supply of commodities that contribute the most to inflation
This is a good Q and honestly would require industry knowledge of each main input to answer in full, which I don’t have.
Healthcare for instance, a large portion of the raw inputs for the actual drugs (biologics) are sourced from china and they have 0 covid policies which have put pressure on producers.
That’s just raw materials, then you have the bio production aspect of it which is typically done worldwide. This is a long process (Plants we’re running 24/7 during Covid) with 1000’s of sourced components (from tubing to pumps to semiconductors) which have to be verified and QC/QA with the distribution company, bio production company and drug producer and then presented to the FDA.
I know Biden introduced/passed a bill recently to actually bring back bio production to the states, however due to the nature of politics I guess that $ won’t be hitting companies till ‘24 the earliest, then thats when the work starts
I know this isn’t a true “commodity” example like oil but I’d assume the point holds true, repurposing a nations (a world’s really) entire supply chain is going to take a lot of time.
And in the bigger argument of inflation commodity inputs just a piece.
Last edited:
Outlaw
New Hope For the HaveNotz
Commodity futures are forward looking, so anticipation of over supply in certain materials would make prices drop. For example if opec announced that they were intending to increase supply of oil by X amount of millions of barrels per day the price would instantly drop and then the after effects would ripple through the economy.
My question is why isn’t the Biden administration taking executive action to increases supply in areas which can be controlled by the American economy? For example lumber, wheat and maybe oil?
Maybe I’m not informed but I’d think that weak supply chains is a national security issue and we should be doing all we can to ramp up supply nationally so that we can keep prices low domestically and for our allies
It seems like jamming rates higher isn’t the answer and will create ill-intended consequences. Inflation wasn’t an issue until Covid wrecked our supply chains.
Biden campaign says jobs report shows he is ‘cleaning up the economic disaster’ Trump left
President Biden’s reelection campaign said the president is cleaning up the economic disaster left behind by former President Trump, hailing the strong jobs report released Friday. Labor Department…
thehill.com
Biden campaign says jobs report shows he is ‘cleaning up the economic disaster’ Trump left
BY ALEX GANGITANO - 12/08/23 9:31 AM ET
President Biden’s reelection campaign said the president is cleaning up the economic disaster left behind by former President Trump, hailing the strong jobs report released Friday.
Labor Department data showed the U.S. economy added 199,000 jobs in November, and the unemployment rate fell to 3.7 percent, which was above economists’ expectations.
“Joe Biden has now created more jobs in less than three years than any president created in four, cleaning up the economic disaster [Trump] left behind,” Biden-Harris 2024 spokesperson Seth Schuster said in a statement.
“There’s more work to be done, but his record shows Americans can’t trust Trump to do it. Instead of standing up to corporate greed to lower costs and raise wages for working people, Trump would double down on the same failed policies that gave massive tax cuts to the rich and big corporations, while creating incentives to ship American jobs overseas,” he added.
The campaign also claimed Trump, who is leading the GOP field for the presidential nomination, put the economy “in ruin” as president.
Biden often points to low unemployment as a clear indicator the economy is improving. While polling has shown Americans largely feel the price of goods is too high, the president has consistently argued his economic plan, dubbed “Bidenomics,” is working.
Last year, there were widespread predictions the U.S. economy would tip into a recession, but it has remained surprisingly resilient. But Republicans are quick to hit Biden on the economy, arguing Americans are worse off since he took office.
The White House, meanwhile, is bracing for more economic news next week when the Federal Reserve will hold its final meeting of the year. The central bank is widely expected to hold interest rates steady at a range of 5.25 percent to 5.5 percent after keeping rates flat at its past two meetings.