What Happened to Inflation? Bidenomics

[Roo Island]

The change over the past two years has been startling. Consumer price inflation, which peaked at 9 percent, is now under 3 percent. And the true inflation picture is arguably even better. U.S. inflation numbers place a large weight on a price nobody pays — the imputed rent on owner-occupied housing, which among other things lags far behind market rental rates. If we measure inflation the way other countries do, without that imputation, we’re all the way down to prepandemic inflation:

 

 

Although the unemployment rate has drifted up a bit, it remains historically low — yet as I’ve been saying, inflation appears to have been beaten anyway. What went right?

The simplest, most plausible answer is that high inflation was mainly caused by disruptions related to Covid. The pandemic caused big changes in both how we spent our money and how we worked, and it took time for the economy to adjust.

 

https://www.nytimes.com/2024/08/20/opinion/inflation-biden-economy.html

[Hanaguma]

I think a better title would be "What created inflation? Bidenomics".   The jumps in basic costs, especially housing and food, are hard for ordinary Americans to bear.  And they have the Biden/Harris administration to thank for it. 

[Roo Island]

4 minutes ago, Hanaguma said:

I think a better title would be "What created inflation? Bidenomics".   The jumps in basic costs, especially housing and food, are hard for ordinary Americans to bear.  And they have the Biden/Harris administration to thank for it. 

From the article. @maesariang and you seem to be in this group.

 

Before I get there, let’s talk about two kinds of people who refuse to acknowledge this good news.

First, there are inflation truthers — people who claim that the official numbers can’t be trusted and that inflation isn’t really way down. In general, people who say such things have no idea how the Bureau of Labor Statistics goes about collecting price data and how hard it would be to fake the numbers.

 

The other major inflation party-poopers are those who say that it’s not enough to get inflation — the rate at which prices are rising — down; we should get the level of prices back down to what it was in the past. Like many economists, I’ve tried, without much success, to argue that this is a really bad idea. But let me try again, by talking about wages.

[Roo Island]

6 minutes ago, Hanaguma said:

I think a better title would be "What created inflation? Bidenomics".   The jumps in basic costs, especially housing and food, are hard for ordinary Americans to bear.  And they have the Biden/Harris administration to thank for it. 

Did you read the article? He's a well respected economist.

[Will B Good]

15 minutes ago, Hanaguma said:

I think a better title would be "What created inflation? Bidenomics".   The jumps in basic costs, especially housing and food, are hard for ordinary Americans to bear.  And they have the Biden/Harris administration to thank for it. 

 

Nothing to do with covid 19 and global supply issues.....how did Bidenomics managed to cause almost identical inflation in the UK and EU.....Mmmmmm?

[nauseus]

1 hour ago, Roo Island said:

The change over the past two years has been startling. Consumer price inflation, which peaked at 9 percent, is now under 3 percent. And the true inflation picture is arguably even better. U.S. inflation numbers place a large weight on a price nobody pays — the imputed rent on owner-occupied housing, which among other things lags far behind market rental rates. If we measure inflation the way other countries do, without that imputation, we’re all the way down to prepandemic inflation:

 

 

Although the unemployment rate has drifted up a bit, it remains historically low — yet as I’ve been saying, inflation appears to have been beaten anyway. What went right?

The simplest, most plausible answer is that high inflation was mainly caused by disruptions related to Covid. The pandemic caused big changes in both how we spent our money and how we worked, and it took time for the economy to adjust.

 

https://www.nytimes.com/2024/08/20/opinion/inflation-biden-economy.html

 

Harmonized or pasteurized?

[KhunLA]

Just in time for the election & COLA to govt programs ... go figure.

[Hanaguma]

1 hour ago, Will B Good said:

 

Nothing to do with covid 19 and global supply issues.....how did Bidenomics managed to cause almost identical inflation in the UK and EU.....Mmmmmm?

Also a lot to do with unnecessary government overspending and useless shut downs of the economy.  Too much money flowing and not enough goods available equals catastrophic inflation. Which necessitated the rise in interest rates, and that in turn shat all over the housing market.

 

Thanks, Joe/Kamala

[retarius]

2 hours ago, Roo Island said:

The change over the past two years has been startling. Consumer price inflation, which peaked at 9 percent, is now under 3 percent. And the true inflation picture is arguably even better. U.S. inflation numbers place a large weight on a price nobody pays — the imputed rent on owner-occupied housing, which among other things lags far behind market rental rates. If we measure inflation the way other countries do, without that imputation, we’re all the way down to prepandemic inflation:

 

 

Although the unemployment rate has drifted up a bit, it remains historically low — yet as I’ve been saying, inflation appears to have been beaten anyway. What went right?

The simplest, most plausible answer is that high inflation was mainly caused by disruptions related to Covid. The pandemic caused big changes in both how we spent our money and how we worked, and it took time for the economy to adjust.

 

https://www.nytimes.com/2024/08/20/opinion/inflation-biden-economy.html

Nonsense. Pretty clear what caused the inflation.

[Will B Good]

47 minutes ago, Hanaguma said:

Also a lot to do with unnecessary government overspending and useless shut downs of the economy.  Too much money flowing and not enough goods available equals catastrophic inflation. Which necessitated the rise in interest rates, and that in turn shat all over the housing market.

 

Thanks, Joe/Kamala

 

 

Wasn't it Trump who shut down the economy?

[khunJam]

3 hours ago, Roo Island said:

The change over the past two years has been startling. Consumer price inflation, which peaked at 9 percent, is now under 3 percent. And the true inflation picture is arguably even better. U.S. inflation numbers place a large weight on a price nobody pays — the imputed rent on owner-occupied housing, which among other things lags far behind market rental rates. If we measure inflation the way other countries do, without that imputation, we’re all the way down to prepandemic inflation:

 

 

Although the unemployment rate has drifted up a bit, it remains historically low — yet as I’ve been saying, inflation appears to have been beaten anyway. What went right?

The simplest, most plausible answer is that high inflation was mainly caused by disruptions related to Covid. The pandemic caused big changes in both how we spent our money and how we worked, and it took time for the economy to adjust.

 

https://www.nytimes.com/2024/08/20/opinion/inflation-biden-economy.html

And what planet is the rock laying in which you reside under? Graphs are comic strips with magical numbering in an attempt to convince people not to believe what they’re actually experiencing, excessive runaway inflation caused by stupid policies of the administration, policies that actually hurt you rooisland. It’s ok don’t believe your eyes.

[TedG]

3 hours ago, Roo Island said:

From the article. @maesariang and you seem to be in this group.

 

Before I get there, let’s talk about two kinds of people who refuse to acknowledge this good news.

First, there are inflation truthers — people who claim that the official numbers can’t be trusted and that inflation isn’t really way down. In general, people who say such things have no idea how the Bureau of Labor Statistics goes about collecting price data and how hard it would be to fake the numbers.

 

The other major inflation party-poopers are those who say that it’s not enough to get inflation — the rate at which prices are rising — down; we should get the level of prices back down to what it was in the past. Like many economists, I’ve tried, without much success, to argue that this is a really bad idea. But let me try again, by talking about wages.

 

Inflation is still here.  Since Jan 2021 prices have increased by over 20%.  The damage is done. 

[TedG]

Pumping up the money supply had nothing to do with inflation.  

Edited August 23 by TedG

[metisdead]

Posts using derogatory and toxic nicknames or intentional misspelling of people’s names will be removed. If you don’t want your post to be removed, spell people’s names correctly, this applies to both sides of the political debate.

[maesariang]

5 minutes ago, TedG said:

 

Inflation is still here.  Since Jan 2021 prices have increased by over 20%.  The damage is done. 

Exactly. It does not disappear. Ideal inflation is 1 to 2%.

[TedG]

Just now, maesariang said:

Exactly. It does not disappear. Ideal inflation is 1 to 2%.

I’m reminded of high prices whenever I visit the grocery store. 

 

The left is doing a touch down dance over the new normal. 

[Hanaguma]

59 minutes ago, Will B Good said:

 

 

Wasn't it Trump who shut down the economy?

Yes, and it was a stupid thing to do.  And then Biden made it worse by overspending on Covid relief that injected way too much money into the economy.  Still havent recovered from that either. 

[bubblegum]

3 hours ago, Hanaguma said:

I think a better title would be "What created inflation? Bidenomics".   The jumps in basic costs, especially housing and food, are hard for ordinary Americans to bear.  And they have the Biden/Harris administration to thank for it. 

So it had nothing to do with the lack of transporting goods? Covid? And the incredible mess Trump left behind, like he always does?

 

I'm just flabbergasted when I read these weird posts.

[maesariang]

1 hour ago, Will B Good said:

 

 

Wasn't it Trump who shut down the economy?

Dems would have had bigger shutdowns. Lefties worldwide wanted it. 

[Roo Island]

5 hours ago, Hanaguma said:

Also a lot to do with unnecessary government overspending and useless shut downs of the economy.  Too much money flowing and not enough goods available equals catastrophic inflation. Which necessitated the rise in interest rates, and that in turn shat all over the housing market.

 

Thanks, Joe/Kamala

Blame it on the politicians in the US and UK who didn't follow the science.

 

Thanks, Trump/Pence

[Roo Island]

5 hours ago, retarius said:

Nonsense. Pretty clear what caused the inflation.

Are you an economist?

[Roo Island]

4 hours ago, khunJam said:

And what planet is the rock laying in which you reside under? Graphs are comic strips with magical numbering in an attempt to convince people not to believe what they’re actually experiencing, excessive runaway inflation caused by stupid policies of the administration, policies that actually hurt you rooisland. It’s ok don’t believe your eyes.

I'm guessing you fall into this category.

 

First, there are inflation truthers — people who claim that the official numbers can’t be trusted and that inflation isn’t really way down. In general, people who say such things have no idea how the Bureau of Labor Statistics goes about collecting price data and how hard it would be to fake the numbers.

[Roo Island]

4 hours ago, TedG said:

 

Inflation is still here.  Since Jan 2021 prices have increased by over 20%.  The damage is done. 

We're at 3% now. Fed just announced a rate cut. Go figure

[Roo Island]

4 hours ago, maesariang said:

Exactly. It does not disappear. Ideal inflation is 1 to 2%.

When did that happen?

[CallumWK]

6 hours ago, KhunLA said:

Just in time for the election & COLA to govt programs ... go figure.

 

Must be the first time ever I agree with a post of yours.

 

I think in the business world it's called just in time delivery

[mogandave]

1 minute ago, Roo Island said:

We're at 3% now. Fed just announced a rate cut. Go figure

The target is 2%, so if it’a 3%, it’s 50% over. 

 

Yeah, the Fed using the revised job numbers (the administration lying all along) as an excuse to cut rates to juice the economy in time for the election. 

 

But as a “degreed economist “ you know all of this, yes? 

[CallumWK]

10 minutes ago, Roo Island said:

We're at 3% now. Fed just announced a rate cut. Go figure

 

You have a link as to where they announced that rate cut, and when and how much?

[Roo Island]

4 minutes ago, mogandave said:

The target is 2%, so if it’a 3%, it’s 50% over. 

 

Yeah, the Fed using the revised job numbers (the administration lying all along) as an excuse to cut rates to juice the economy in time for the election. 

 

But as a “degreed economist “ you know all of this, yes? 

Where did the administration lie? Link?

 

But yes, the fed messes with rates to juice or depress the economy. They do this under every president

[Roo Island]

1 minute ago, CallumWK said:

 

You have a link as to where they announced that rate cut, and when and how much?

https://www.cnbc.com/2024/08/23/fed-chair-powell-indicates-interest-rate-cuts-ahead-the-time-has-come-for-policy-to-adjust.html

[CallumWK]

1 minute ago, Roo Island said:

2 minutes ago, CallumWK said:

 

You have a link as to where they announced that rate cut, and when and how much?

https://www.cnbc.com/2024/08/23/fed-chair-powell-indicates-interest-rate-cuts-ahead-the-time-has-come-for-policy-to-adjust.html

 

So you call providing an indication an announcement? 

 

So again, when exactly the rate cut will be and how much?