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

The oil is still being shipped.

 

Republicans only care about inflation when a Democrat is president.

 

What nonsense! You should know by now that corporate tax rate and the tax that corporations actually pay are completely different things in this country.

Obama inherited one of the worst economies in this country's history. With close to record high unemployment due to the conditions Bush left behind. And he brought us back from it. So low wage jobs were the best alternative to NO jobs. Now... people don't need those low wage jobs, thanks to The Great Resignation. http://www.politicalforum.com/index.php?threads/the-great-resignation-is-accelerating.593415/

BTW, I have no idea what regulations have to do with any of this.

 

The Trump tax cuts produced NOTHING for anybody. Other than the largest corporations that got to buy back stock to make their stock holders richer. But even that was nothing more than a "quick-fix" that had absolutely no long-term benefits and just a stupid increase in our national debt.

 

I am a fairly strong budget hawk regardless of party politics. Generally, I believe that if we plan to spend more than we’re going to take in, we should raise taxes to pay for it. I believe a pattern of doing that would provide a natural brake on unnecessary spending.

But there are exceptions to that general rule, and those would be when the deficit spending adds real value that ultimately pays us back.

Improving our infrastructure is an example of that. Roads, freeways, bridges, airports, water and sanitation, and the power grid all fall into that category.

When I think of the Democrats’ $3.5 trillion proposal, my objection is not so much the spending itself, but what the spending will go to.

If it was for purely necessary infrastructure improvements, (physical projects like the ones I mentioned) I could be persuaded to support it.

A parallel can be drawn to improvements to one’s house. If you go into debt temporarily to add a room, remodel, and have the old leaky roof replaced, you add value to the house, and it pays you back in the long run. But a new TV, furniture, and a new car doesn’t.

I don’t want the TV, furniture, and car. I want the added room, the plumbing and electrical upgraded, and a new roof.

See what I’m saying?

 

So Biden failed you say?

 

Just on the room addition. I spent years as a licensed appraiser. Approved by the Feds.
Room additions are more tricky than merely adding one.
Per sq. ft., a Bedroom is more valuable than a second kitchen would be, or a second bathroom. And the job of the appraiser is to look at the market and read what the market accepts and not simply toss out some number pretending it is true.

Infrastructure is an appraisal problem rather than a political problem. There are appraisers able to determine the value of infrastructure. I am not one of them.

 

There is a problem raising taxes.

Why force the consumer to live at a lower standard to favor the Feds who are notorious as to wasting money. Take the vaccines now. Biden has shipped millions of doses to other countries and this is yanked from your pocket and my pocket, without our consent.

 

Only but the very big companies have high priced lawyers that can dig through the company's record and find those tax loopholes. Most can't afford it.

Low wage jobs Golem? Obviously you missed reading a lot of what I said.

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.../

 

Democrats know some weird math that is not found in any math textbook. ^The math above is correct. Stephen Moore is an expert on this.

 

Seems you didn't do much research on Trump or Obama. It wasn't just high taxes that hurt business. It was also his near record regulations that he poured on business. Like toilets having to only use so much water to flush. Shower heads that could only put out so much water a minute. Dishwashers and washing machines that could only use so much water. Soap detergent that had to be reformulated to work with low water appliances. The list goes on and on. Money spent by companies have to change their product to meet Obama's never ending regulations.

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.

 

I operate a small business. It is a corporation. In fact it is a C corporation. Its financial situation isn't the same my personal financial situation. Its tax cut doesn't apply to me. What is the difference between a business and a corporation? The tax cut applied to all businesses regardless of how they are organized. It was businesses that got the majority of the benefit of the tax cut, not people.

 

Bingo! Big corporations. That's who the loopholes were created for. And that's who those big "tax rates" you mentioned apply to. But not what they actually pay.

 

Let me show you what tax cuts do. Your a Democrat so obviously have no idea. I'll take Apple as an example


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 just one year later 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.


Did Apple make out? Sure did. Got to bring home all that money. Got to buy back a lot of company stock. But did America make out as well? We got 38 billion in taxes, 20,000 new jobs and a commitment to invest more in our economy.

 

Thanks for a good post. Why are you so sure that there is no monetary inflation? I am not an expert, but when I look at this



it would be surprising that the large jump in money supply in spring 2020 would NOT cause inflation.

On the other hand, there is this:



Money velocity has nosedived since the late 90s, which is one of the reasons why government spending had to expand to compensate, in order to keep GDP growth reasonable. The question is: What happens next. If money velocity recovers to pre-pandemic levels, I don't think inflation can be avoided.

 

Good post. For me, the $3.5 trillion price tag is also too much. I'd be fine with a max of $1.9 trillion that is currently in the talks in the halls of congress (over 10 years, mind you). Compromise is always a good thing. When one side gets ALL their wants, something usually went wrong.

 

What? America's spending habits haven't changed a bit. We get money we spend money. What has changed is that the source of that money is increqsinly government not business and sense about the only goods the government creates are copious amounts of red tape which in and of itself drives up costs, that means over time fewer goods are being manufactured locally and more and more things must be imported. Add to that California deciding to squeeze out independent truckers and you get a perfect of economic storm

 

Regulations also had a big impact on small business. They had to make sure their business had isles so many feet apart. Bathroom sinks and doors were passable to the handicap, etc. I read once there are lawyers that do nothing but go to businesses and check them out to make sure they have followed all government regulations. Then sue them when they don't.


www.investors.com › politics › government-regulationGovernment Regulation: How Much Is Enough? | Investor's ...

• How Much Does Government Regulation Cost?
• Government Regulation Economics
• Government Regulation Under Trump
• Government Regulation: Costs vs. Benefits

That's not often the case. A study two years ago by the Mercatus Institute found that if the regulation burden had only remained the same from 1980 to 2012, U.S. GDP would have been 25% larger, or $4 trillion a year in added output. That's the equivalent of nearly $12,500 in lost output for every living American. A huge loss. Moreover, the regulation burden often has the perverse effect of falling on small, struggling businesses more than on big businesses. Take, for example, the Dodd-Frank bill, which was passed and

 

not sure where you live, but the Pandemic has had an effect on spending, many spend less money going out than they used too over that last year

 

That's true. Many businesses have closed down because people are afraid to go out. My ex wife had a tea room business for over 20 years in Arizona. She did quite well before this virus hit her. Business dropped like a rock after and she couldn't make enough to pay her mortgage, help and utilities. She sold it and because business was way down, only got a few thousand out of it after paying everything off.

 

exactly, maybe it's not like that everywhere, I was shocked where gary got that from

 

I said some are able to make it despite the high cost of the Biden super high prices of fuel.

 

That pisses off Biden.

 

We are not doing so bad in Idaho. But our Governor is a Republican.

 

Velocity of money is important to Government due to faster moving money producing higher tax sums to the Feds.