Will spending $4T be the path to stop inflation?

@zahlanzi said
We are saying. Since always. When we started saying that a family shouldn't send their children to work. When we started forming unions. When we said we should reduce the hours we have to work, so that we manage to live our lives as well, not just be forced to work to barely scrape by.
When we established minimum wage laws, that was an actual law, saying: this is what som ...[text shortened]... com/2021/07/18/minimum-wage-workers-cant-afford-two-bedroom-rental-anywhere-country-new-report-says/

People should not have children that they cannot afford. 'Since always' people have prepared for their future. A married man would go west in the 1800's and send for his wife after getting his feet on the ground. Liberals in those days would have made someone else pay for some guy's stupidity, but such are liberals. I cannot write about liberals and common sense at the same time, the concepts don't gel.

You then suggest that 'society' reduce hours that we have to work. That statement makes no sense to a capitalist. What in the heck is your end game?? And you suggest that there be a guarantee that we live our lives well? I think Marauder calls that a safety net, I wish y'all would start a thread on a safety net, who gets to fall into it, he we keep out of it. And a thread on that 'guarantee'. And what you mean by forcing someone to work.
About the duplex? I started with nothing, borrowed $50 to rent a uhaul for my trip to the big city. My first investment....a duplex. A 30-year mortgage today is about 2.75%!!! Are the people you speak of helpless? FedEx pays $40K to their drivers. Send these people to a finance class and teach them how to go to work, instead of reducing the hours that they 'HAVE' to work. Geez. Tell me, Zahlanzi, how can a man get ahead if he doesn't work his butt off? Beat out the other guy? Should the govt make them go home at the same time??????
Zahlanzi, don't want to put you on the spot....but, are you one of those people??

@no1marauder said
Common sense would be:

IF their salary isn't enough for someone to live, they'll die defeating the whole purpose of working in the first place.

Why do you libs, as usual, avoid the subject of a thread that you don't like. No one has answered if it is a good idea, or bad, for Biden to spend $4T in the face of inflation. Will it stop inflation, which he says it will? How so?

@averagejoe1 said
Actually, I 'still' teach, and it is Finance, not economics.
You are right, common sense, but don't get your point. Certainly you don't want a person's standard of living to remain the same. To me, that sounds like people living under socialism. Brrrrrrrrr

Then you want them to make a higher salary, don't you?

4T over 10 years which is what is being proposed is a small fraction of GNP ( which is around $20 trillion a year) and thus will have little impact on inflation. But repairing our physical and social infrastructure will have benefits far exceeding the cost.

@no1marauder said
Then you want them to make a higher salary, don't you?

4T over 10 years which is what is being proposed is a small fraction of GNP ( which is around $20 trillion a year) and thus will have little impact on inflation. But repairing our physical and social infrastructure will have benefits far exceeding the cost.

Businesses are already hiking prices due to inflation. You will ignore that while Suzianne is paying $12 more every time she fills up with imported gas. Add all the increases up, and you might find it not to be a small fraction....no, indeed.

So, I think you are saying Biden is wrong, when he says the spending will NOT cause inflation. Thankyou, that is your answer to the question of this thread. You are saying there will be inflation, and I am saying that the effect of higher prices, etc, will have a huge impact, certainly in the short term, when folks try to make ends meet. Downer. I don't think they are thinking about the 10-yeear window the you refer to.

@wildgrass said
Salaries should be enough for employees to live.

Let's dig into that one.

Which salaries? All salaries?

Are you saying that every employee should earn enough money to feed a family?

Every burger-flipper, which can be done by high school kids after school or during the summer, should earn enough to live on? In Manhattan, you may need a six figure salary to live (assuming no government assistance). Should every burger flipper make six figures?

The more money that low level jobs pay, the greater the number of those jobs end up being taken over by machines.

@averagejoe1 said
And Biden said to business owners facing labor crisis...."Pay More". But, He said nothing about raising their prices to cover the increased wages.

And Biden said to business owners facing labor crisis...."Pay More"

That's not exactly what Joe Biden said, and while I agree blanket statements like this don't apply to all business's there is some logic there. CEO's CFO's, and board members making 6 and 7 figure incomes are rarely asked to make sacrifices if a business struggles, it's almost always those at the bottom end of the pay scale who lose jobs or work hours in an economic downturn. Most large business's can well afford a modest wage increase for their lower paid workers.

@mchill said
And Biden said to business owners facing labor crisis...."Pay More"

That's not exactly what Joe Biden said, and while I agree blanket statements like this don't apply to all business's there is some logic there. CEO's CFO's, and board members making 6 and 7 figure incomes are rarely asked to make sacrifices if a business struggles, it's almost always those at the bottom en ...[text shortened]... downturn. Most large business's can well afford a modest wage increase for their lower paid workers.

Modest will never be enough for liberals . Think about it. They want too much equality, to put it bluntly. Equal with the guys who risked and sweated to build the business, which would happen at the expense of cutting dividends to stockholders, causing stock price to tumble, and so on and so on. Surely you get my drift. The stockholders lose their investments while the workers swap places with them by having more income while the stockholders have less dividends. This is Econ 101.
It makes more sense for a company to chug along and workers come and go, ether moving to other jobs paying more money, or getting comfortable with the job they are in. Let the worker make their own choices, You want government to make choices for them, and to create a'safety net' for them.
A classic lib example of the lib desire to allow govt into our lives. Brrrrrrrrrr

@eladar said
The more money that low level jobs pay, the greater the number of those jobs end up being taken over by machines.

But this is evolution. You fellers want govt to control THAT?!??! Things always work out, Eladar. Somebody has to make the robots. Salesmen will sell the robots. The cost of labor goes down, so the hamburger price goes down.
Then some other invention comes along, the USA is great. Well, not Chicago.

@sh76 said
Let's dig into that one.

Which salaries? All salaries?

Are you saying that every employee should earn enough money to feed a family?

Every burger-flipper, which can be done by high school kids after school or during the summer, should earn enough to live on? In Manhattan, you may need a six figure salary to live (assuming no government assistance). Should every burger flipper make six figures?

You won't get a cogent answer on his one, they cannot get their arms around it, At least if Sonhouse answers, it could be entertaining!

@no1marauder said
Then you want them to make a higher salary, don't you?

4T over 10 years which is what is being proposed is a small fraction of GNP ( which is around $20 trillion a year) and thus will have little impact on inflation. But repairing our physical and social infrastructure will have benefits far exceeding the cost.

Marauder is a smart fellow, and is saying our economy can handle a smattering of inflation, that it will have little effect. I disagree, esp seeing the cost of everything going up, and Biden has not even started yet! Hell, the cost of USED CARS is skyrocketing!!!
Plaudits to Marauder for answering a thread question.

@averagejoe1 said
But this is evolution. You fellers want govt to control THAT?!??! Things always work out, Eladar. Somebody has to make the robots. Salesmen will sell the robots. The cost of labor goes down, so the hamburger price goes down.
Then some other invention comes along, the USA is great. Well, not Chicago.

I am not sure things will be great when only 25 percent of the population has a job.

@Eladar
Ah, so your solution would be to cut their wages in half and therefore machines would NEVER take over their jobs. GREAT THINKING.

@averagejoe1 said
Modest will never be enough for liberals . Think about it. They want too much equality, to put it bluntly. Equal with the guys who risked and sweated to build the business, which would happen at the expense of cutting dividends to stockholders, causing stock price to tumble, and so on and so on. Surely you get my drift. The stockholders lose their investments while ...[text shortened]... et' for them.
A classic lib example of the lib desire to allow govt into our lives. Brrrrrrrrrr

Equal with the guys who risked and sweated to build the business

Wrong! - 90% of those folks did NOT risk and sweat to build the business. They are either very high priced employees, or wealthy investors who had the cash to purchase enough stock to get a seat on the board.

@eladar said
I am not sure things will be great when only 25 percent of the population has a job.

You predict the future, so I predict we will need people big time to build the assembly lines for the robots, etc, all the way down to the truckers to deliver them and managers to run them. Cool.....the jobs of actually flipping hamburgers disappears and those same people become managers of the machines that do it. You libs are negative lot. And I never figured Eladar for a lib. Our group is shrinking, but we fight on, not unlike the Alamo....where we lose in the end!