Why would Biden's stimulus cause inflation, but not Trump's?

As I posted elsewhere John Kenneth Galbraith quipped that the best benefit of economic forecasters is they make astrology look good.

 

has nothing to do with stimulus, it's about distribution and America's changing spending habits, distribution has not been able to change as fast

if America's spending habits do not change back, we will have a lot more issues in the economy, if they do change back it will go back to business as usual, we should know within the next year

our distribution was built to be cheap and efficient, not resilient or redundant

 

You assert a refutation of @garyd but then say pretty much the same thing as he did. People sitting home and getting money from the government creates demand without a concurrent increase in supply. You are mostly correct, but practically all too often the government decided and subsidized supply never sees any demand.

 

I'm having trouble understanding this. Did the trucking industry suddenly fall apart in the past six months? It was not having difficulty hiring drivers in 2020 and 2019 and 2018, etc???

 

Nothing could be further from the truth Golem. Obama had the highest corporate tax in the whole industrial world, along with near record regulations. What did all that bring to America and the American worker? Lets look at his economy

Recovery Has Created Far More Low-Wage Jobs Than Better-Paid ...
www.nytimes.com/2014/04/28/business/economy/...
Apr 27, 2014 · Economy Recovery Has Created Far More Low-Wage Jobs Than Better-Paid Ones
How good were the 10.9 million jobs under Obama?
Money.CNN.com/2016/11/04/news/economy/jobs-under-obama/...
Nov 03, 2016 · CNNMoney breaks down what kinds of jobs have been created and ... Almost all of the job gains under President Obama have been in so-called service jobs,

The deep recession wiped out primarily high-wage and middle-wage jobs. Yet the strongest employment growth during the sluggish recovery has been in low-wage work, at places like strip malls and fast-food restaurants.

In essence, the poor economy has replaced good jobs with bad ones. That is the conclusion of a new report from the National Employment Law Project, a research and advocacy group, analyzing employment trends four years into the recovery.

“Fast food is driving the bulk of the job growth at the low end — the job gains there are absolutely phenomenal,” said Michael Evangelist, the report’s author. “If this is the reality — if these jobs are here to stay and are going to be making up a considerable part of the economy — the question is, how do we make them better?”

The report shows that total employment has finally surpassed its pre-recession level. “The good news is we’re back to zero,” Mr. Evangelist said.

But job losses and gains have been skewed. Higher-wage industries — like accounting and legal work — shed 3.6 million positions during the recession and have added only 2.6 million positions during the recovery. But lower-wage industries lost two million jobs, then added 3.8 million.
HTTPS://www.nytimes.com/…/recovery-has-created-far-more-low…
77 percent of 2013 jobs were part-time positions ...
https://www.washingtontimes.com/news/2013/aug/2/part-timer-nation...
Aug 02, 2013 · Fully 77 percent of positions added to the market in 2013 have been part-time, in contrast to the positive economic news making the media rounds, according to payroll reports released in recent weeks.
"There are now 1.2 million fewer jobs in mid- and higher-wage industries than there were before the Great Recession, according to data from the National Employment Law Project. In contrast, there are 2.3 million more jobs in lower-wage sectors than before the recession," according to CNBC. Nor is there the hoped-for renaissance in American manufacturing. We have some 300,000 fewer manufacturing jobs since President Barack Obama took office and 1.5 million jobs below the pre-recession level.
https://www.usnews.com/news/the-report/articles/2015/08/23/the-part-time-economic-recovery

 

I'm confused (or just don't know). What broad spending habits changed over the past 6 months?

 

Welfare At All-Time High Under Obama

The latest government figures reveal that an astonishing number of people are collecting public benefits such as food stamps and disability checks, revealing an alarming trend of dependence on government rather than self-sufficiency associated with the American dream.

A record 5.4 million workers have applied for federal disability checks since President Obama took office, according to a news report that cites recent government figures. This is straining already-stretched government finances while posing a long-term economic threat by creating an ever-growing pool of permanently dependent working-age Americans, the report says.

Since the recession supposedly ended in mid 2009, the number of people who have applied for disability benefits is double the job growth figure, according the report which includes an informative chart. In just the first four months of this year, 539,000 joined the disability rolls and more than 725,000 applied for the federal benefit. That means nearly 11 million people are on disability, according to the Social Security Administration.

Also this week, government figures reveal that a record number are getting food stamps and the figure will keep rising. This is not surprising since the Obama Administration has promoted the program like there’s no tomorrow in an effort to eradicate “food insecure households.” In fact, the administration has spent millions of dollars to recruit even more food-stamp recipients and has doled out hefty cash rewards to states that sign up the most people. One state even bragged about a $5 million performance bonus it got from the feds for its “swift processing of applications.”https://www.judicialwatch.org/.../welfare-at-all-time.../

 

Printing money causes inflation, whether its Biden, Trump, Obama or all the other presidents ever. A little inflation, while still effectively a tax and IMO unlawful when its done intentionally and we didn't vote for it, is nonetheless not an insurmountable problem. As we print more money, the problem becomes less insurmountable. As our money becomes worth less, more and more people will be less able to afford the things they need to keep them healthy, and all this money we're spending to try to 'stop the pandemic' will eventually have the opposite effect if it continues. And continue it shall because there are no interests within the govt to reduce it.

 

people stopped going out, ordered more from sites like Amazon, ect....

we spend less on local services and more on foreign goods

te Pandemic has changed people's spending behaviors

 

Now Trump cut taxes and regulations and what did that bring to America and the American worker? Yes the rich got richer, but so did the average worker.

https://www.atr.org/thanks-trump-median-household-income-highest-level-ever

Real median household income has grown by $4,144 or 6.8 percent since President Trump took office, according to an op-ed published in the Wall Street Journal.
This data is based on a report released by Sentier Research analyzing the Census Bureau’s monthly Current Population Survey.
As noted in the op-ed, authored by Stephen Moore, real median household income is at an all-time high:
“Real median household income—the amount earned by those in the very middle—hit $65,084 (in 2019 dollars) for the 12 months ending in July. That’s the highest level ever and a gain of $4,144, or 6.8%, since Mr. Trump took office. By comparison, during 7½ years under President Obama—starting from the end of the recession in June 2009 through January 2017—the median household income rose by only about $1,000.”
The below chart highlights the strong Trump wage growth.


Economy & Politics: Income Gap Grows under Trump, Obama — but ...
www.nationalreview.com/2019/10/income-gap-growth...
Indeed, in a bit more than half of his term, Trump’s $5,003 mountain of growth in median household income is 346 percent higher than Bush-Obama’s $1,444 molehill of marginal middle-class earnings. https://www.nationalreview.com/.../income-gap-growth.../

 

There are more jobs than people out of work, something the American economy has never experienced before
https://www.cnbc.com/.../there-are-more-jobs-than-people...

Pay gains under Trump best since the Great Recession
www.cnbc.com › 2018/01/31 › pay-gains-under-trump...

Jan 31, 2018 - Workers looking for fatter paychecks had their best year in 2017 since before the financial crisis, according to a government report Wednesday.

Overlooked on economy? Rising paychecks for blue-collar ...
www.usatoday.com/story/opinion/2019/08/14/blue...
Aug 14, 2019 • Blue-collar path to solid paycheck. And as blue-collar workers have seen their wallets thicken, highly educated white-collar workers’ wages have grown more modestly.

• Pay
gains under Trump best since the Great Recession
www.cnbc.com/2018/01/31/pay-gains-under-trumps...
Jan 31, 2018 • President Donald Trump's first full year in office saw gains that easily outdistanced any year for his predecessor, Barack Obama, whose best showing was the 2.2 percent increases in 2016 and 2014. Six of Obama's eight years in office saw gains of 2 percent or less.

 

This fairy tale meme is really getting tiresome. Any rudimentary analysis of the Trump tax cuts show the lower and middle class fared considerably better than the upper class.

 

276,912 viewsMar 11, 2019, 03:52pm
Trump's Policy "Magic Wand" Boosts Manufacturing Jobs 399% In First 26 Months Over Obama's Last 26 https://www.forbes.com/.../trumps-policy-magic-wand.../...

 

Trump left office with fewer jobs than when he took office

 

Maybe a feel good participation trophy, lil tiny plastic one to match you answer

 

It's early yet, only ten months in so far

 

Here Democrats is how it works. Trump knew this. Cut taxes and regulations and bring back business.

But it took the cut in taxes and regulations to swing it for many of those factories. Especially Apple. Asked in 2016 if he would bring his billions in off shore billions home, he said no.( .Apple CEO Says Company Won't Bring Home Money Parked ...

https://www.forbes.com/.../08/17/apple-ceo-says-company-wont...

Aug 17, 2016 · Apple CEO Says Company Won't Bring Home Money Parked Overseas Until Tax Rates Are 'Fair'. Tech giant Apple is hoping that the United States' tolerance for pain is a little bit lower than mine. In an interview with The Washington Post last week, Apple CEO Tim Cook discussed his tenure at Apple and, not surprisingly,..
.
But after Trump's tax cuts

Newscentermaine.com | Why Apple is bringing billions back home
www.newscentermaine.com/article/news/nation-now/...
A second corporate campus, an additional 20,000 workers and a $350 billion commitment. That's Apple's pledge to the U.S. As the tech giant announced a sweeping set of moves Wednesday to bring back billions of its offshore cash and spur economic growth. The plan also includes paying $38 billion in taxes.

 

Yes, along with every president since Calvin Coolidge.

The major positive was to deny some money for government to waste. What is required is spending cuts. Spending cuts coupled with tax cuts represent solid economic activity. Without spending cuts, then tax cuts only help reduce available funds for government overspending.

Open ended question with no definitive answer.

Of course. True of all presidents since Coolidge. Government prevents inflation by living within its means.

Sorry, I didn't take the time to go beyond a knee jerk reaction because this post was motivated by politics, not economics.

 

You know this is falling on

 

Everyone made out on Trump's tax and regulation cuts. Rich, middle class and the poor

Black and Hispanic unemployment is at a record low
www.cnbc.com/2019/10/04/black-and-hispanic...
Oct 04, 2019 · The jobless rate for Hispanics hit a record low of 3.9% in September, while African Americans maintained its lowest rate ever, 5.5%. The Hispanic women unemployment rate was 3.8% in September and ...

 

Omg. Why did you have to remind me?

 

Seems like a lifetime already

 

There it is, I'm surprised these armchair economist don't know this, well not really, if they did we wouldn't see these type of threads

 

COVID 19 pandemic and the world economic shutdown has consequences. Demand was and is unpredictable given the current environment, hence, supply and distribution is also unpredictable and still lags.

 

So tell me Democrats, Obama had the highest corporate tax in the whole industrial world and near record regulations. How did America make out with all that money. You saw Obama's economy. What did he do with all that money? You saw what happened when Trump cut both. Why wasn't it ever on the news with the news media? Most Democrats believe Trump accomplished nothing in his four years in office.He had one of the best economies ever.

In a race to the finish, Obama administration presses ahead ...
www.washingtonpost.com/politics/in-a-race-to-the...

• Cached

As the future Trump administration begins to take shape, the Obama White House is engaged in a frenzied, final effort to put in place as many new rules and regulations as time allows.



20,642 New Regulations Added in the Obama Presidency
www.dailysignal.com/2016/05/23/20642-new...

• Cached

More than $22 billion per year in new regulatory costs were imposed on Americans last year, pushing the total burden for the Obama years to exceed $100 billion annually.



The U.S. Has the Highest Corporate Income Tax Rate in the ...
https://taxfoundation.org/us-has-highest-corporate-income-tax-rate-oecd
In today’s globalized world, U.S. Corporations are increasingly at a competitive disadvantage. They currently face the highest statutory corporate income tax rate in the world at 39.1 percent. This overall rate is a combination of our 35 percent federal rate and the average rate levied by U.S. States.