Biden’s Spending Plans Would Boost Economy, Not Spark Inflation: Moody’s

Democrats’ plan to spend more than $4 trillion over a period of years on everything from road repair to child care would boost the U.S. economy in the long run without sparking higher inflation, according to a new analysis from Moody’s Analytics.

“The legislation is more-or-less paid for on a dynamic basis through higher taxes on multinational corporations and the well-to-do and a range of other pay-fors,” the analysts write, adding that the fiscal support it would provide would be enough to get the economy back to full employment, without pushing the economy much beyond that. “Worries that the plan will ignite undesirably high inflation and an overheating economy are overdone,” they say.

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Like Moody's, the FED believes that the current spike in inflation is transitory and is mainly due to supply difficulties caused by high demand.

Isn't it great to finally have an administration that knows how to manage a nation's economy? .... after 4 years of improvisation that only resulted in a ridiculous GDP growth.

Biden proves once again that the cycle continues: Republicans inherit a healthy economy, leave ruins behind, and the voters call on Democrats to get the country back on track.

MAGA

 

inflation is already happening, we need to raise the min wage to offset it, or the economy will collapse

 

Can’t be. According to the righties, Biden is senile and can’t actually do anything.

We need to get Trump reinstalled as President, which is supposed to happen any day now when the election audits come in, so we can go back to having the bestest economy ever in history !

 

Artificially raising the minimum wage would just add to inflation.

 

then we raise the min wage more.... eventually it will balance out

 

No, it will not. You can make the min wage 100 bucks an hour and it will not be balanced out.

 

Biden: A 10,000 calorie a day diet and you will lose weight.

 

true, that is one way to lower the carbs

 

https://www.breitbart.com/economy/2021/07/22/jobless-claims-7/

Biden bucks at work.

New claims for unemployment benefits soared by 51,000 to 419,000 for the week ended July 17, the Department of Labor said Thursday.

 

Odd collection of states that saw increases. "There were increases in filings in California, Illinois, Kentucky, Michigan, Missouri and Texas"

https://finance.yahoo.com/news/wrapup-1-u-weekly-jobless-123441480.html

 

Kinda like tax cuts for the rich pay for themselves...yea I hear ya

 

What planet are these creatures from? Spending plans have been tried and failed over the history of Democrat Party rule. Have economies in large cities improved in poverty zones with all the big spending welfare programs? No. How about shovel ready jobs big spending by Obama-Biden? Nope! In fact, has the big welfare checks to people for the pandemic help the economy? Nope. When will Democrats wise up to the fact the economy grows when private business grows. And, then and only then. What would help is to fund police departments and make DA's prosecute all crime no matter how much looters steal. Throw the lawbreakers in prison so that small business owners in all communities including black and hispanic, can open up their businesses and not worry about looters. Idiots!
No, before the pandemic shut down the economy, the economy was stronger than anytime in the past. Unemployment was at its lowest point with blacks and Hispanics than anytime in the past. Inflation was nil. The economy was thriving! What the heck are you talking about? The Covid19 shutdown had nothing to do with Republicans or Democrats. All this spending and higher taxes will only cause inflation to rise so much that unemployment will rise to new heights. Moody's are idiots.

 

I agree.

 

2.6% GDP growth from 2017 to January 2020 does not fit the definition of a thriving economy, especially in a period of full employment.

And above all, this weak growth was financed by substantial tax cuts that ultimately benefited only the rich.

Inflation comes with growth, you learn that in high school economics.

I am sure that they are waiting with impassivity for your analysis on the issue.

Take this opportunity to become a reference in the field.

 

I remember when Moody's said credit default swaps were safe, then they had to divide their company into halves to attempt to avoid legal liability.

I've worked with Moody's. They're dumbasses.

 

I pulled up your article and as soon as I saw the name Mark Zandi, I quickly closed it again.

Sorry, but this is simply propaganda.

 

People are not working due spending so let's spend more to get people back to work. Awesome logic

 

I can boost my standard of living by running up my credit cards!

 

You mean the same Moody's that said "Everything is peachy. Keeping buying CDOs (Collateralized Debt Obligations) like they're going out of style" right up the start of the "Great Recession?"

 

You know that you are just messing with numbers. Trump took over a pathetic economy in which Obama himself said it would never be at 2% ever again. That 1.5% was the new normal. Trump started off with that miserable economy and it took time to change course. Like, to get rid of nonsensical economic breaking regulation and taxations. You might remember that Trump got it to over 4% in 2019 before the pandemic hit. And, you were not only quoting the year he took over from the pathetic Obama-Biden economy, but also the year 2020 when the Democrat lead China Virus shut down much of the economy and millions of jobs were lost. So, 2.6% with only 2 years out of the 4 years you quoted being legit to compare, that's pretty darn great! At least compared to Obama-Biden. Had Trump had 2020 without the pandemic, he would have one the election and we would be consistently over 4%. And, again, what did Trump do for the black, Hispanic and women? He lowered unemployment to their best on record ever. That's because the economy was way better than you try to make it cherry-picking 2 years. As far as the revenue collected because of the tax cuts, they were more than Obama ever collected. That's because more people were working and paying taxes.
Biden's economy should be one of stellar growth because we are coming up out of the pandemic and business are opening up with people having more money. But, that's not happening, is it! Why? Because giving free money to people who can work does not stimulate a thing. Unemployment rose again. Why? Meanwhile, Biden is racking up trillions more in debt, like his former boss, Obama. Although, I'm sure Obama is calling the shots.
This stuff you should have learned in Jr. High.

 

Biden has no plans other than wasteful boondoggle spending.

 

Like his former boss, Obama. Although, I think Obama is probably calling the shots...

 

If you can burn more calories than that in a day, yes, that would be correct.

 

The average GDP growth rate under Obama from 2009 to December 2017 was 2.3%/year.

The average GDP growth rate from January 2017 to December 2019 was 2.6%/year.

Those are two numbers you can't run away from.

Considering the deficits, tax cuts, trade wars and subsidies that the government has paid out as reparations, the little growth under Trump has cost taxpayers a fortune.

 

Moody’s appears to be on the Democrat’s payroll.

Channeling money through government is the least productive and efficient possible input to the economy. The notion that almost $5 trillion in spending will pay for itself through “dynamic”modeling is a farce. Even Trump’s tax cuts, which have done far far better than Moody’s model predicted, didn’t quite pay for themselves.

The only way they can finance this stuff is by socking the middle class. Anyone who thinks you can tax the rich into paying for it all have no clue. You can take every penny the rich have and you still will be 4 Trillion short.