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They’re letting inflation run hot so workers in sectors hit hardest by the lockdown can recover. These are generally blue collar / service jobs more likely to b

They’re letting inflation run hot so workers in sectors hit hardest by the lockdown can recover. These are generally blue collar / service jobs more likely to be held by women and POC.

da_big_ghey 5y ago
Already we have more $$$/liquidity than is usable for economy, see storage way up in overnight reverse repo, see investing more in junk debt... no places for to put these $$$, more $$$ no solution. > These are generally blue collar / service jobs more likely to be held by women and POC I am not understanding salience of this part?
- jdavis703 5y ago
  Women and POC tend to be poorer on average.
  - shiftpgdn 5y ago
    Indian and Filipinos Americans earn significantly more than “white” Americans on average.
ethbr0 5y ago
"Let's print more money so that more people have money." The Fed is absolutely doing this for poor workers, and not to enable sustainable deficit funding without raising taxes. /s
- jdavis703 5y ago
  The Fed doesn’t control taxes, Biden has stated he won’t raise taxes on people making less than $400k, and the GOP has indicated that raising corporate income taxes are a no-go. Realistically what other options are there?
  - ethbr0 5y ago
    Ostensible the Fed is supposed to be an independent inflationary guard. (Yes, dual remit, but fair as a blanket statement) They could raise interest rates to break inflation, even at the cost of economic pain and forcing government to rebalance its books. Nobody was happy with Volcker, but once inflation gets rolling, no one believes you're serious until you take a tire iron to the economy's kneecap. And tell them (loudly) that you'll be back tomorrow for the other one. Or, you could take less pain now and avoid the worst future version.
  - tastyfreeze 5y ago
    The federal budget is higher than tax revenue. It has been this way for decades with few exceptions. If taxes dont cover the budget then the budget should be cut to fit revenue. But, that isnt what has been happening. The budget grows every year and the govenment borrows more money to cover it instead of cutting the budget or raising taxes. We are running the government on maxed out credit. But dont worry, congress will just increase the credit limit so we can borrrow more. The real solutions are political suicide. So, we will get the most shitty option of borrowing and printing more money.
engineer_22 5y ago
Please explain your thesis, how does CPI inflation help blue collar / service workers recover?

They’re letting inflation run hot so workers in sectors hit hardest by the lockdown can recover. These are generally blue collar / service jobs more likely to be held by women and POC.

da_big_ghey 5y ago

Already we have more $$$/liquidity than is usable for economy, see storage way up in overnight reverse repo, see investing more in junk debt... no places for to put these $$$, more $$$ no solution. > These are generally blue collar / service jobs more likely to be held by women and POC I am not understanding salience of this part?

jdavis703 5y ago
Women and POC tend to be poorer on average.
- shiftpgdn 5y ago
  Indian and Filipinos Americans earn significantly more than “white” Americans on average.

ethbr0 5y ago

"Let's print more money so that more people have money." The Fed is absolutely doing this for poor workers, and not to enable sustainable deficit funding without raising taxes. /s

jdavis703 5y ago
The Fed doesn’t control taxes, Biden has stated he won’t raise taxes on people making less than $400k, and the GOP has indicated that raising corporate income taxes are a no-go. Realistically what other options are there?
- ethbr0 5y ago
  Ostensible the Fed is supposed to be an independent inflationary guard. (Yes, dual remit, but fair as a blanket statement) They could raise interest rates to break inflation, even at the cost of economic pain and forcing government to rebalance its books. Nobody was happy with Volcker, but once inflation gets rolling, no one believes you're serious until you take a tire iron to the economy's kneecap. And tell them (loudly) that you'll be back tomorrow for the other one. Or, you could take less pain now and avoid the worst future version.
- tastyfreeze 5y ago
  The federal budget is higher than tax revenue. It has been this way for decades with few exceptions. If taxes dont cover the budget then the budget should be cut to fit revenue. But, that isnt what has been happening. The budget grows every year and the govenment borrows more money to cover it instead of cutting the budget or raising taxes. We are running the government on maxed out credit. But dont worry, congress will just increase the credit limit so we can borrrow more. The real solutions are political suicide. So, we will get the most shitty option of borrowing and printing more money.

engineer_22 5y ago

Please explain your thesis, how does CPI inflation help blue collar / service workers recover?