https://www.cbsnews.com/news/inflation-reduction-act-may-not-lower-inflation-penn-wharton/

One thing the Inflation Reduction Act may not do: Lower inflation

 

https://www.cbsnews.com/news/inflation-reduction-act-may-not-lower-inflation-penn-wharton/

One thing the Inflation Reduction Act may not do: Lower inflation

This is really great. People, in a short period of time create an inflation mess. Then create an inflation reduction act to allegedly lower inflation. Pure genius. But it may not work making inflation worse.

Ron

 

Inflation fuels growth.
Growth fuels inflation.
You cannot have one without the other.

 

Inflation fuels growth.
Growth fuels inflation.
You cannot have one without the other.

True ... but the economy is very much like an engine. It's bad if it overheats, and I see inflation as a perfect analogy of that.

 

Inflation fuels growth.
Growth fuels inflation.
You cannot have one without the other.

Inflation fuels everything but growth. How does an economy grow when citizens are paying more today than they did for the same groceries and gas they bought for a lower prices yesterday? Spending more on the same volume of goods and services is not growth, it's just, inflation.

 

MOD NOTE: Fair warning, guys. This has the potential to turn into a heated political mess real fast. So, everyone, let's please go out of your way to avoid that, otherwise this thread will end up getting closed very quickly.

 

Growth requires growing the money supply.
Growing the money supply leads to inflation.

 

https://www.npr.org/2022/08/26/1119...ome-powell-inflation-interest-rates-recession

Jerome Powell says Fed is resolved to fight inflation even if it brings economic pain

https://www.cnbc.com/2022/08/26/pow...n-ahead-as-fed-fights-to-lower-inflation.html

However, Powell cautioned that the Fed’s focus is broader than a month or two of data, and it will continue pushing ahead until inflation moves down closer to its 2% long-range goal.

“We are moving our policy stance purposefully to a level that will be sufficiently restrictive to return inflation to 2%,” he said. Looking into the future, the central bank leader added that “restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy.”

 

https://www.cnbc.com/2022/08/26/for...-by-as-much-as-8475-due-to-battery-costs.html

DETROIT – Ford Motor is hiking the starting prices of its electric Mustang Mach-E crossover by more than $8,000 for some models, as it reopens order banks for the 2023 model year.

The company on Thursday said the markups – ranging between $3,000 and $8,475, depending on the model and battery – are due to “significant material cost increases, continued strain on key supply chains, and rapidly evolving market conditions.”

 

Growth requires growing the money supply.
Growing the money supply leads to inflation.

Agreed, when money is "supplied" as opposed to "earned".

 

Growth requires growing the money supply.
Growing the money supply leads to inflation.

The world managed to grow (add value to the economy) long before there was a FEd. Value is built into the economy when business owners build durable goods (assets). The only way to "grow" a service economy is to to centralize the ownership of the service provider and call that company an asset. Otherwise, if you assume a complete service economy with no assets created (like a bunch of independent cobblers and tinkers repairing shoes and pots, then you're right, the only way to grow the value of the economy is for the Fed to control the interest rate throttle or Uncle Sam to give away money.

Again, Inflation kills growth, it doesn't fuel growth.

Inflation fuels growth.
Growth fuels inflation.
You cannot have one without the other.

And there are two major causes of inflation -
- Disastersor natural population growth which causes a shortages of resources (labor, fuel, lumber, plastics, chips, transportation, ), or,
- Cash pumped into the economy - which causes exceptional demand - which causes a shortage of resources to make finished products.
In the end, inflation decreases the amount of goods and services bought or sold and SLOWs growth. Inflation has NEVER fueled growth.

 

"Money grows on trees"
Money is created from nothing. It's all an illusion.

 

Money is created from nothing.

Then you won't mind giving me some of yours.

http://www2.harpercollege.edu/mhealy/eco212i/lectures/5es/5es.htm

 

Then you won't mind giving me some of yours.

I am but a minuscule quantity of condensed energy passing through in an infinitesimally small fragment of space-time.

I have little of that thing they call money but I am grateful that while I am here my fellow fragments of condensed energy provide for me. They feed me, entertain me, care for me when I am in need and make me happy.

When I disintegrate again I will have no more need of money. You can have all of the little that I have.

 

In other words, money is as 'real' as living humans are.

 

In other words, money is as 'real' as living humans are.

I put more faith in money.

 

In other words, money is as 'real' as living humans are.

Maybe.
Money is a figment of the human imagination.
Humans exist only in the minds others. Cogito, ergo sum.

 

Money is a figment of the human imagination.

No. Money is the practical manifestation of your own effort, skill, and knowledge, and <Mod:link deleted>

You may damn money only to the extent to that you damn yourself.

 

Well I must be missing out on something.
I give my skill, knowledge, experience, time and effort on AAC.
Come on fellow humans, where is my payback?

 

Maybe.
Money is a figment of the human imagination.
Humans exist only in the minds others. Cogito, ergo sum.

Sure, ask the homeless about imaginary money.