How Biden's Agenda Is Causing Inflation
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- Опубліковано 29 гру 2021
- Too Many (Government) Dollars Are Chasing Too Few Goods.
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The Consumer Price Index (CPI) tracks the cost of everyday items. It's jacked up a whopping 6.8 percent over the past year, the biggest increase in almost 40 years. Gas is up 51 percent, beef is up 20 percent, and furniture by 11 percent.
This is making the nightly news sound a little too much like a rerun of That '70s Show, a sitcom set in a decade famous for ever-rising prices and useless "Whip Inflation Now" buttons that Gerald Ford tried to stick on everybody from running mate Bob Dole to former Beatle George Harrison.
Back in the 1970s, Ford was better known for literally and figuratively stumbling than for his economic acumen, especially when it came to inflation, which soared into double digits shortly after he took office. Ford believed that the way to beat inflation was to browbeat companies into keeping prices down and Americans into becoming bargain hunters. He declared a war on high prices, referring to inflation as "domestic enemy number one."
"I pledge to my fellow citizens that I will buy, when possible, only those products and services priced at or below present levels," promised Ford.
Joe Biden is looking reminiscent of the 38th president, and not simply because he also has trouble with airplane steps.
Biden, his advisers, and his champions in the press are ignoring the tough lessons of the past by downplaying inflation or bizarrely claiming it only freaks out rich people. Then there's leading Democrats like Sen. Elizabeth Warren (D-Mass.), who seemed to be channeling Gerald Ford when she tweeted out that the reason "your Thanksgiving groceries cost more this year" was "because greedy corporations are charging Americans extra just to keep their stock prices high."
Even worse, Biden and crew are delusionally pronouncing that we can tame inflation by pumping massive amounts of government money into the economy-a course of action that will almost certainly make everything more expensive. "What this package will do is lower some of the most important costs, what [families] pay for health care, for child care. It's anti-inflationary in that sense," said Treasury Secretary Janet Yellen in defense of the recently passed $1.2 trillion infrastructure bill and promises of even-bigger bills related to the president's "Build Back Better" agenda.
What Ford, Biden, Warren, and Yellen have in common is a failure to understand inflation's most important underlying cause, which the Nobel Prize-winning economist Milton Friedman was explaining with unique clarity back in the 1970s. "To understand the cause of inflation, you must understand that it is anywhere and everywhere a monetary phenomenon," said Friedman. Supply-chain issues and rising demand are factors too, but the biggest contributors come from the government and the Federal Reserve.
We've seen absolutely massive increases in government spending over the past two years, which have been paid for by printing money and historic boosts in the money supply. When you print money it means that there are more dollars chasing basically the same amounts of goods and services, which causes prices to rise. In just the past three fiscal years, federal spending has swollen to nearly $7 trillion a year, up from about $4.4 trillion in fiscal year 2019. Spending was $6.6 trillion in 2020, and $6.8 trillion in 2021.
Back in the '70s, Friedman likened the early stages of inflation to alcoholism. Politicians get to spend more money, tax revenues increase without passing new legislation, and some consumers feel like they are gaining purchasing power as their wages go up. "Inflation is just like alcoholism," he warned. "In both cases, when you start drinking or when you start printing too much money, the good effects come first and the bad effects come only later. That's why in both cases there's a strong temptation to overdo it, to drink too much and to print too much money."
Here's a final insult: Even the price of booze is going up, so not only will we have more sorrows, it's going to cost us more to drown them.
Produced by Nick Gillespie; video editing and graphics by Adani Samat; audio mixing by Ian Keyser
Video: Excerpts from Milton Friedman Speaks: Money and Inflation (1978) and Free to Choose (198) courtesy of Free to Choose Network.
Music: Grey Shadow by ANBR and Temptation by Ride Free licensed through Artlist.
Since Biden took office, there seem to have been more unfavorable results in America. These results include effects on the markets, such as price declines and sharp increases in inflation, as well as bank failures. I wonder if the sudden increase in interest rates will help value investors or if it would be wiser to stay away from the stock and financial markets for the time being.
To "buy the dip" It will be profitable in the long run. However, investors should be wary of the bull run. It is advisable to connect with a skilled adviser to fulfill your growth objectives and prevent mistakes. High interest rates typically result in lower stock prices.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I love how the Ford administration's plan to slow inflation was "lol stop buying expensive stuff"
It was only 3 months ago that the current administration told us all to "lower our expectations" for having stocked shelves and prices that don't shoot up.
@@AlecMuller I’d rather hear that than lying that shelves would be stocked soon.
That is actually true. People want to buy iCrap and get mad that it costs more than one thousand dollars.
Alec Muller the administration before that said what should I do, wave a magic wand and bring the jobs back?
"Whip Inflation Now" was a disaster based upon a total misunderstanding of the cause of inflation. Ford looked like a fool; just wish I had one of those old pins to wear with my "Let's Go Brandon" mask.
I used to think misguided politics were a matter of errors in analysis or perspective, either mine or theirs. But the older I get, the more I get the feeling they're just flat-out lying.
I mean...if one extols the virtue of honesty, but hands out $100 for every lie told, what do you expect the result to be?
To this I apply Hanlon's Comb: "Whether it's incompetence or malevolence - there's a problem - comb it out!"
All part of the plan to crash the dollar and then say we have no choice but to go to a one world digital currency.
Best way to look at policy choices these days is to assume most of the outcomes were intended; not accidents.
@@mghegotagun the playbook being followed to the letter.
Next Babylon Bee headline: Rich members of Congress are baffled as to why poor people dislike inflation.
ppl in congress only make like 10 thousand a year grow up
I absolutely LOVE the analogy at the end. "Not only will we have more sorrows, it's going to cost more to drown them." Perfect.
Sorry, as a teacher I feel compelled to note that it is not an analogy.
@@jimwerther nerd
@@jimwerther thank you for your service.
All part of the plan to crash the dollar and then say we have no choice but to go to a one world digital currency.
@@weldmin4818
My service?
For 2021:
Realestate up 20 to 30%, depending on location
Rents up 20 to 30%, depending on location
Boats/yachts up 25 to 30%
Vehicles up 27%
Let's go Brandon!
Ammunition and components to make ammunition have also skyrocketed, some items over 100% more expensive than pre-pandemic
House prices have doubled in Washington state
Who the hell is buying a boat or a yacht?
@@RezaQin Boats and yachts are made my middle class workers. If the price goes up, rich people buy fewer (or buy overseas), meaning middle class jobs are lost. That's bad for everyone, and as others have pointed out, that reduction in goods and services without a corresponding reduction in monetary supply contributes to inflation.
@@bobnix3240 Yachts don't sustain an economy, at best you get a little bit of trickle down economics (which hardly works to begin with).
Nick Gillespie, fair and level headed as always. Always appreciate your earnest approach absent of exaggerations.
"You will never be free of sacrifice. You will pay it now or you will pay it later. Later cost more." - Vera Stone
@@daotheeternalnamelessbeyon8778 I'm sorry, I have no idea what you mean by that.
I ain't paying later, I'll be dead.
For those whom don't know the truth, let me help you out!! Since forty years ago the items included in the equation have been changed at least twice! If we were to calculate inflation today just as they did 40 years ago our inflation would probably be closer to 25 or 35 percent! Our government just redefines things when they don't want you to know what's going on for real! We so desperately need integrity back in the branches of our government.
Whatever party you pick, they are going to continue the same thing. You just get to elect a puppet, the gov and system never changes.
@@godfather7339 That's why you should vote for the least of two evils
@@godfather7339 Don't vote for a party then. Vote independent. Vote for your neighbor Jim for all I care. Vote for that Tiger Psycho, at least it would send the message that the American people are not buying it anymore.
I respectfully have to nitpick your point here, as I think it sort of misses the central point of the video. It would be even more strange if the equation/methodology is not changed over the course of 40 years. The CPI is typically calculated using a representative 'basket of goods' model. Over the last 40 years, the goods that we view as essential has radically changed (e.g. how many of us would now define smartphones, internet access, personal computers/laptops as irrelevant to a typical basket of goods, whereas 40 years ago how many would have those goods?). The most absurd thing about the current high inflation (I'm not from the US) is that the state prints high amount of money and somehow there are trained economists who think that would not lead to inflationary monetary consequences. This is despite the phenomenon has been empirically proven for over 50 years by Milton Friedman. Paul Krugman (whose headline is shown in the video) is a Nobel Prize winning economist. If this isn't corruption of academia by politics, I do not know what is.
You need to look at the big picture...peak boomer retirement, record household wealth creation, dxy has increased all year...we are entering the next economic boom and we literally can't pump enough liquidity in at this time.
I’ve watched Milton Friedmans lecture on inflation several times. Too bad politicians and journalists as well as many modern day economists hasn’t.
They're perfectly aware of it. It's called rent seeking!
Obviously, they haven't or they are corrupt.
@@angelabaiers5055 Well, power tends to corrupt!
The professional liars knew
Please encourage Leftists you meet or even online to take the boosters, tell them it will "help" their immune system. Try to convince them you are doing because you care for their health.
This is the rule of the game. Voters know they can vote themselves a bigger part of the public money, and politicians' horizon is the next election.
much like every other govt wars on X:
declare a war on high prices, gets higher prices
war on poverty = more poverty....war on drugs = more drugs....war on terrorism = more terrorism....
Time to declare war on government efficiency
After 50+ years with the war on poverty it’s time to bring the troops home
@@Navy35 no way bruh, we've had 36,000 troops stationed in South Korea since 1956, how are they supposed to defend themselves with only their massive military advantage over the North?
Yo Daguy absolutely agree! We can send that many troops overseas to protect other countries borders but not our own?
Lol Brandon's Agenda? Ffs this isn't his agenda, this is his handlers agenda. Guy can't even remember what he had for breakfast.
Obama is pulling the strings.
@@RyanWSi was he pulling trumps strings? Inflation started with the cares act. Whoever was pulling Trumps strings is now pulling Bidens.
@@weldmin4818 the Illuminati is pulling their strings
It's not coming out of his pocket, its coming out of ours.
Born in 2000, its taken years to get to this point but COVID is what finally made me resent the U.S and realize I was in love with the idea of the U.S, free market principles, the ideas of the founders & the enlightenment, read the constitution 10 times. But that's not what the U.S is. And I have to face the reality that my only time on earth has to be spent at the downfall of western society.
And well deserved
Well said young man . How rare to see the system not punch out an idealist.
All part of the plan to crash the dollar and then say we have no choice but to go to a one world digital currency.
Well, you could always leave. There are still countries out there that support your values. Take what America means to you and bring it there
@@alexnezhynsky9707 // Which countries?
It's one of the most elementary principals in economics and these clowns are running in the opposite direction....to CHEERS!
Most printed money is either in the financial system or overseas cause we're significantly less productive than the world. That's why domestic inflation hasn't increased too drastically, but it will. These countries want to abandon the dollar & will eventually. Especially because of the damage it's doing to their economy x
In the meantime, enjoy crippling stagnation from a neverending misallocation of resources, over consumption, overvaluations, & rampant speculation
Please encourage Leftists you meet or even online to take the boosters, tell them it will "help" their immune system. Try to convince them you are doing because you care for their health.
@@rejectionistmanifesto8836 What has a vaccine got to do with inflation? That's not a rational argument but just flat out hatred.
@@maarten1115 oh gee I dont know when you fire workers that produce actual goods and services for society and behave like a rabid hateful insane dictator not caring about destroying their life and doing mandates that shut down ports/factories...etc to the point of disrupting supply chains that took decades to build, then ask why would it would have any effect on Inflation!!!
@@rejectionistmanifesto8836 And who is that dictator? Right wing politician Joseph Biden? My point is that you seem to believe that vaccines are lethal or at least seriously harmful and thusly they need to take it.
The main reason inflation is so bad it's because of his war on fossil fuels all those goods got to be shipped if it costs more to ship them then the company's charge more for the goods
Theft, theft, theft, theft, theft, theft, theft.
I wish ReasonTV would have more views and subscribers because they always bring out great content that you'll enjoy no matter if your republican or democrat!
A very much appreciate y'all showing that little clip with Jim Crow dummy tripping and falling up the stairs like a buffoon. 😂
Paul Krugman: "Inflation is the path to prosperity."
Everyone gets to be a millionaire! Don't mind the fact that a loaf of bread costs $10,000.
I am baffled by Krugmann, a Nobel prize winning economist, downplaying inflation since the beginning of Biden‘s inauguration and even before
Simple and to the point explanation. It still astounds me how many don't understand this simple principle.
they understand it my bro. This has to do with power, spending bills, who's friends with who, and what kind of corrupt scheming the Federal reserve is doing like bankrupting all the banks like they did in 2007.
@@davidanalyst671 I was actually referring more to the general population than to those in power, but i will still say that there are a great number in power that are so blinded by their own ideology that they can't fathom that it isn't possible to pull a few additional power levers and just reverse this but I will admit it is possible that they are simply lying to us all the time.
Really it's almost like increasing the money supply is inflation
Because it is
bro. don't get too deep into economics. Keep it simple so we can understand it hahahah
Ford and Brandon sure do have a lot in common
Every time my representatives boast that they've gotten more money for our community, I make a note to find someone else to vote for.
Economists: Government causes inflation
Statists: Idiot, just give it more power over the money supply, problem solved😎
This isn't that hard to understand. Increase the money supply while simultaneously making commodities more scarce by shutting down supply chains and of course you get inflation.
Not just commodities - human labor too by furloughing workers. The less we produce at the factories, the less there is supply to consume. Add to that a rising money supply and thus artificially increased demand. How these supposed economic experts are surprised about record inflation is puzzling to me
well, the most effective way to avoid double digit inflation is to just change how the CPI is calculated. Modern problems require modern solutions!
lets take oil, food, and housing out of the CPI for everyones' good. lolz
The dollar hasn’t been worth a dollar in my lifetime. 72 model
Brrr and on go let's.
Hi, my name is Brandon Lescoe.
If gas costs more then the local pizza place raises their delivery fees the entire economy's basically like that if it costs more to ship it costs more and all those vehicles run on fossil fuels they don't run on wind power or solar
Yep! We are right back to the good old days of taxation without representation. 😡
I was taxed when I was 15. What representation did I have?
"representation" just means my idiot neighbors decide my fate. Why is that acceptable?
Milton Friedman was a genius. He was one of the individuals to save humanity from the menace of socialism.
Elect a clown expect a circus.
It's sad, most people don't know how it all works.
Yep there's a few of those pinheads in here spouting off as though they have a clue.
It's not sad I'm glad people are suffering. Especially Trump supporters didn't call out Trump for spending and QE ect....
"Let's go Brandon. I agree!" - President Joseph Robinette Biden, Jr. 12/25/2021
Fantastic! Using the same level of Vox's editing quality, but actually outputting truth instead of nonsense! God bless, and keep it up!
A “monetary phenomena” - correct….for them - not us small-time consumers
Inflation depends on the ratio of money to goods and services. So there are two ways to increase inflation: create more money relative to goods and services, or eliminate more goods and services relative to money. Our administrators are doing both: running up public and private debt (creating money) via low interest rates and government stimulus, and eliminating goods and services with the COVID response.
Absolutely spot on. Most mainstream analysis on inflation is surface level nonsense. It focuses on supply chain problems and always ignores money creation. Even still, the analysis is incredibly lacking. Supply chains are out of whack largely because of policy decisions, and that is hardly ever discussed.
This inflation crisis is almost entirely self-inflicted as it is a byproduct of our Covid response. What we're witnessing, in my opinion, are the consequences of a global policy failure for which no one wishes to take responsibility.
@Bruzzh 2121 The governments around the world have a vested interest in peddling sweet untruths to us because, quite frankly, they know this crisis is almost entirely of their own making, and there's no way out of this.
Take the Fed, for instance. Inflation is running at a 40-year high at 7.5 percent according to official figures, which is almost definitely an underestimate. Central banks can and should control inflation by raising interest rates. What does the Fed do? They talk about raising interest rates by .25 percentage points at the time. Someone has aptly pointed out that this is like fighting a wildfire with a water pistol.
Why are the Fed not doing their job? Simple. They know that if they do anything substantial about inflation, they risk crashing the financial markets and the economy as a result. There's no good way out of this, and they know it. They're waiting for a miracle.
warren blaming high prices on corporate greed is exactly what hugo chavez does
Great piece Reason. Simple and easy to understand
RED WAVE NOW. Last week I bought eggs at *ALDI* and they were 2.30 a dozen... this week? **3.25**. BIDEN HAS GOT TO GO **NOW**.
How did Reason know I'm an alcoholic?
I wish I could be an alcoholic but booze is just too expensive sadly. A tall boy where I live used to run $1 and now it's $2.
Perhaps the Government shouldn't have passed a $2.3T bailout bill for Wall Street and corporations at the start of the pandemic. 🤔
Should have let them fail.
Yea this one is about right. $6 trillion to pump up the stock market is fine and dandy but the second some bills get passed to improve infrastructure or, god forbid, help working people, then inflations a problem
@@tylerberks2756 Yeah what could possibly go wrong when huge companies go bankrupt.I mean for the thousands of employes who are hyerd by them...well sucks for them.
@@ezlose6545 a) the stock market inflated drastically, $6 trillion was an unnecessarily high amount, and for proof of that look at how much billionaire wealth increased during the pandemic
B). Ever heard of the furlough scheme?
@@tylerberks27561. what did you expect?Look at
the kinds of companies billionares are running.For exampel Jeff Bezos runs a the biggest online shop in the world,in a time where everybody was stuck at home and the physical compedeters out of market of course his revenue will grow.The money was supossed to be used to save the physical chains and rather new companies.
2.Nobody said Trumps politics were 100% right,I only said they were necessary.The point is that biden is faced with a problem he has no idea how to handle and red states make right now a better recovery than blue states expassely california.
@@ezlose6545 wait so which one was it? Did the stock market soar because of the nature of large businesses or did it soar because of government/ central bank policy. You’ve just contradicted yourself because surely if it’s a case of “what did you expect”, there was little reason to pump all that money into the stock market
If it was supposed to save supply chains, a larger and earlier infrastructure bill would’ve been a great idea
how is printing more money not regulated by public oversight? The people should be able to vote when it comes out of our taxes!
Love the graphics!
It seems that some really have trouble understanding that inflation is above all a problem of too much money chasing too few goods. There are no easy solutions at this point, a lot of this inflation is already baked in the cake so to speak. Raising interests rates as Volker did at the end of the 1970s may just not be possible at this point given the astronomical debt levels of governments, corporations and individuals, the effect of even a mild augmentation of rates in the neighborhood of 1-5 percent over say two years might just be too painful to bear and lead to serious social unrest as large parts of the population are pushed into default given their over extended balance sheets. In the short term we might be able to alleviate the pain people are feeling by lowering the gas/fuel/energy taxes to give them a little more money in their pockets to blunt the effects and lower the cost to producers of key inputs in their production processes. However over the long term this will undoubtedly increase demand, which will feed into inflation. A real pickle we find ourselves in, clearly though, printing more money isn’t gonna help. Good luck convincing your government to stop. My advice, invest in land and try to weather the coming storm.
Elon Musk today said that a recession is coming within the next 12 months.
The real inflation rate is much, much, much higher than stated. The CPI doesn't include food or energy, both of which have skyrocketed and we all use every day
Not ignorance its evil.
"There is no inflation in Ba Sing Se. Here in the walls of the city our currency is stable. There is no inflation in Ba Sing Se"
Subsidizing inflation for less than a quarter of the population while inducing greater inflation on the entire population is not anti-inflationary.
The real question is, is it incompetence or deliberate
It is deliberate.......incompetence.
Great vid!
As a libertarian, Trump is so much better. It's not even close.
Yeah Trump was trash too, he was okay with the stimmy checks and the companies' bailout
@BRICKS BASIC TRAINING from and economic perspective, he was. He was also good with foreign affairs. However he was in the pocket of big business, was horrible in regards to the constitution and in turn personal liberty (see bump stock ban), sucked with domestic policy, and all around divisive. The last point may just speak more to the cultural decline of the country rather than the man himself.
Funny as a libertarian who voted for him twice I feel like he is not much different. Although better than the alternative Trump still made that money printer go Brrrr....... Not to mention the COVID lockdowns and draconian measures stared with Trump. Trumps NYC hotel is complying with the mandates while small business throughout the city are protesting it.... Trump loves money more than ethics and he will never have my vote again
@@jonb4333 no more divisive than any other president in the last 30 years. The fairytale please everyone politician has been played out. Folks are sick of silver tongue politicians which is why they voted for Trump. He calls a spade and spade.
Trump printed more money in 4 years than Obama did in 8 and that's not even including the money printed during the pandemic. You know who would have been better than both those demented clowns? Jo Jorgensen or Gary Johnson in 2016.
Inflation is the expansion of the money supply. The price rise is a symptom.
so in history we have had times where we had inflation but no increase in prices?
Venezuela also demonized the producers
No shit, how can we stop it?!
Stop government
I keep getting pissed off with topics like this. You see an economist talking about spending in a very logical level-headed way and then politicians get in there and f**k it all up. Politics is just a horrible way to get things done, but what would be a good alternative? Popular policies are often very damaging ones that lead to downstream damage, sometimes years after the people leading those policies are out of office. More politicians come along trying to fix that damage, and around we go, doing this cycle over and over again. It's such bullcrap and leads to collapse.
Support term limit policies that eliminate political reelection. That's the first step to fixing the systemic problems you describe
Reserves are not “cash, shareholders' equity or anything relatively easy to sell,” and they are not “capital.” They are electronic base money created by the central bank, and only banks hold them.
All part of the plan to crash the dollar and then say we have no choice but to go to a one world digital currency.
XRP
Who are the 81 million that voted for this?
because he's a mad man who only cares about skin color and not the skill, talent, and personality of the person themself
HOW do people not just naturally understand this??
its depressing we have to actually explain this.........
hmmm....what about the FED's increase in the money supply during covid last year?
If the price of fossil fuels go up everything goes up if the price of fossil fuels go down then everything goes down or stays stable
Great video
What they mean by “long term economic capacity” is basically the productivity of goods and services. If more money is chasing the same amount of goods then prices rise. Then also it works the other way if more goods and services come out than new money then inflation goes down. Increasing productivity of decreasing the money supply are the 2 only ways to lower inflation. The question is will the government’s plans actually increase productivity to match the money supply?
I took college level economics. This is a very accurate depiction on how inflation occurs. There is a tight rope the government must walk between printing more money to increase economic growth, but will also increase inflation and then doing nothing and hoping the economy bounces back over time on its own.
Your teaching is incorrect. Government should not be printing any money
Printing money does not increase economic growth.
Your Keynesian professors would have you believe this is required of the government. It is not.
@@whousa642 his teaching really isn’t incorrect in that sense. A low level of inflation is necessary for consumer confidence. Hell even Friedman himself doesn’t say that the government shouldn’t print any money at all. If the government prints no money then you would see deflation, which is historically catastrophic for economies
@@tylerberks2756 // pure bullcrap. Milton was a monetarist and therefore flawed
My problem with "blaming" only Biden is I heard this from economist and other money experts 24 months ago about the economy and projections. I kept wonder why this was not a surprise. One thing I learned too from history: there were those intellectuals that warned the Federal Reserve about market crashing back in early 1900s...they did not listen for whatever reasons. There are many people at the top that knew this...not just Biden...and they sat on their hands. 😑
Facts!
All taxes on me are done without representation. No politician represents what I want. They never have and probably never will. When can we start the revolution?
Revolution would just result in the destruction of your own neighborhoods as they become battlegrounds as bad a Stalingrad. Assassination via portable mortar fire just like what the Taliban used are far more effective and efficient. The ruling class of both Republican and Democrat leaders all went to the same schools together and were friends. Voting hasn't mattered since Wilson betrayed the vote for explicitly staying out of WW1, and probably didn't matter before then either.
@@ColinTherac117 Ah, you can predict the unchangeable future. Please tell me how I die? Is it painful?
@@ColinTherac117 Dang. How old are you, bro? Don't see too many "Blame Woodrow Wilson" posters these days...
Can we get the names of the 7 Nobel loriates?
Its like going to the doctor with a cut that you put a band aid on already and the doctor just puts three more band aids on and prescribes 100 band aids.
The U.S. Mint physically prints the $. The Federal Reserve Bank, which is not a gov't entity, then issues the $ the the gov't as a loan
I just want to not rent at some point in my life. I don't care if we have progressive or conservative housing policy, as long as it either doesn't encourage consolidation or gets out of the way.
We need an update, things are much much worse now especially in Dems controlled city/states like CA.
Live this video
17 Nobel laureates should have the prize and money revoked.
Give credit to J Powell, Head of the fed. He had a ton more to do with inflation and I don’t think I ever heard his name in this video. He is the one that did QE to save the economy and he raises interest rates. By far the biggest player. The job of the fed is to control inflation. Give the man credit
Absolutely incorrect. Everything you said is wrong.
@@whousa642 then what does the fed do
@@benthezomboni2701 // This was a 5-minute video. It can not cover all. Second, It was Donald Trump that pestered the fed to print lots of money.
@@whousa642 yes
And it mostly has to do with the fact that since the beginning of the pandemic Interest rates are near 0 aswell as supply chain problems also Trade War tariffs on goods all of these factors are causing Inflation. What the administration and The Fed will mostly likely raise interest rates back to it's normal rates, get the supply chain more better, and eliminate tariffs in the post pandemic world.
Milton Friedman was one of the greatest economists of the 20th century, but why would an administration need to listen to something someone said 50 years ago? It'll be different this time lol
I'd slightly disagree with Freedman that inflation is a monetary issue. It really occurs when your demand outreaches your supply linking it more with population and production. When that occurs prices naturally rise so government rather that trying to invest in increasing supply to keep up with demand which is hard and takes real Innovation, they inflate the currency as it's a quicker way of maintaining costs even though in the long run prices rise faster and worsen the situation. This has its roots going back so far in history that it's a crime that people don't learn about it. For instance the black death which killed half the world's population in the 14th century was due to this issue. The industrial revolution was one of the first times a government and society in general actually dealt with this issue properly as instead of just inflating the currency British society opted for the longer harder but better solution of actually innovating which stopped mass starvation and lead to the greatest period of innovation in history. This is the problem we are in now, if we keep inflation up it's just going to bite us way harder down the line. We should instead be investing in more efficient forms of energy (nuclear), agriculture, housing, transportation etc. Not massive social spending on things that only help make people's lives a bit better but doesn't help improve the trajectory of the economy or society as a whole. Which is why the politicians that disregard this are cancerous and only care about keeping face as cutting spending won't look good to the electorate who voted them in because they promised to make thier lives easier. We have to get real and understand that our lives are going to get harder, and to try to figure long term solutions.
Background music reminds me of Norma Tanega's "you're dead" which is suitable for a video about the legacy financial system lmao.
Big government is the problem, laissez-faire is the solution, or at the very least, returning to the Constitutional interpretation prior to the Great Depression, and subsequently dramatically reducing the size and scope of the fed. gov.
Evil Milton Friedman be like: "no I won't introduce the income withholding tax"
Well at least there are no mean tweets.
It's going to be a long 4 years
they don"t "fail to understand"
I'm a Mexican (living in Mexico) and even I'm amazed and even outraged a Joke Briben's incompetence and corruption.
Thanks a lot, Brandon
JB Does not understand that an item will be sold at the best (highest) price that it can obtain. If you can get 5000.00 for your car why would you take 4500??? Lots of money makes prices rise.
Top Ramen shouldn't be as high as it is now.
Price controls are coming
Democrats have already implemented rent control in many cities.
@@societyofrobots We need start a real movement!
17 Nobel laureates wrote him a letter saying his plan was going to lower inflation? Somehow I think this might not be true. Are there even 17 living Nobel laureates in economics? If there are, I’d say for this claim to be true then every single one took the time to sign that letter.
George Akerlof
Agnus Deaton
Peter Diamond
Robert Engle
Oliver Hart
Daniel Kahneman
Eric Maskin
Daniel Mcfadden
Paul Milgrom
Roger Myerson
Edmund Phelps
Paul Romer
William Sharpe
Robert Shiller
Christopher Sims
Robert Solow
Joseph Stiglitz
They didnt exactly say that it reduced inflation. They said that spending on infrastructure was a good thing and in the long term (think 50 years) it will have benefits. Short term its gonna suck. But long term we'll be fine.
We will pay for it somehow though. Ecatly how remains to be seen.
@@itzbebop interesting; thanks for taking the time to write that list for me.
That said, support for infrastructure spending and claiming that these people said it would reduce inflation are very different things. Once could make the case that it’s an outright lie. Support for the idea (i.e. the cost is worth it) is not the same as the claim that it will attenuate inflation. Biden’s specific claim was that this spending would reduce inflation; which means he either forgot what the letter said or he very generously mischaracterized it to suit his current political needs. I actually don’t know which one I believe, it could go either way.
Ford fell DOWN the stairs. Joe Dolt fell UP.
Wonder why BILLIONS! of people around the world chant FJB! OH YEAH! he wasnt elected
Why do you distrust the us election?
@@dimwit3006 Because the DNC used a man made Pandemic and instilled fear to change the way voting was done in a state to state basis, they made it impossible to detect was legal and what isn't legal with mail in voting. The US is the only EU NATO nation member who doesnt use voter id law. ONLY NATION! France, Italy, Canada, Britian, Germany all have voter ID Law. Why are the DNC so against IDs to vote? You have to have verification you were vaccinated to almost go anywhere now a days. OOH wait, its because they want fraud!
Think of money like any commodity that follows the rules of supply and demand. If you increase the supply (printing), the price of it goes down (inflation).
Yeah that makes sense. But we have to have some inflation cos of the pandemic etc. Just at what point does it get too high, and I trust the fed to keep this unde control.
Until Savers stop saving in the currency they print, they can keep printing. Until people switch to saving in Physical Gold/Silver, they can print as much as people will give them.
@@dimwit3006 A virus does not cause inflation, that is their excuse. In the 70's, Democrats blamed Arabs (OPEC) for inflation, but oil doesn't cause inflation, either.
@@dimwit3006 “I trust the fed”
economic growth increase the demand of money, that's why an increase in supply is necessary.
However, many people abroad use the US dollar. Inflation eventually hits them as well.
In this sense, isn't a tax that hits non-citizens? And therefore, isn't inflation marginally better (to US citizens) than a direct tax?
To an extent, I would guess yes. After all, that’s probably how we are able to still be on top of all of our debt. However, I would also assume that non-citizens don't like this “tax”, and therefore they will try to exchange our money for another countries currency. This would drop the value of the dollar because nobody outside the U.S wants a U.S dollar and now we just lost all of the benefits of being the worlds main currency. I am no economic expert, however, so take this with a grain of salt.
The US really ignores how the dollar being a standard currency of exchange has allowed it to run increasing deficits over much of the past forty years without incurring the normal blowback. The cost of that budgetary decision is spread out across a much larger fiscal area than the US. Economists have even started claiming that massive budget deficits are perfectly sustainable.
An analogy would be dumping in the ocean. As long as the amount dumped doesn't reach a critical level, the effects are almost invisible, and people could be forgiven for believing that there is actually no effect. Once the dumping increases to a level that the ocean is unable to absorb, however, the reality makes itself known, and the results are disasterous.
It's primarily a tax on savings. So yes, it will export some of that tax to foreign savers of US dollars. This might seem positive in the short term, but in the long term this risks the status of the dollar as the world's reserve currency. Losing that status would have serious consequences for a country with as much debt as the US now carries
We are doooooomed !
Brandon and Pocahantas are on it.