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I wonder if Yellen is starting to realize that the present inflation isn’t so transitory? Apparently not, the administration is still pursuing inflationary pol

I wonder if Yellen is starting to realize that the present inflation isn’t so transitory? Apparently not, the administration is still pursuing inflationary policies such as the student loan giveaway and the infrastructure pork bill. The Biden administration gets an F- on fiscal policy.

thehappypm 4y ago
The infrastructure bill is desperately needed. It’s the best piece of legislation to come in my adult life. It could be the difference between America crumbling into obscurity, or revitalizing the economy. The student loan one.. woof. The timing is rough. I know it’s not popular to say, but all those dollars not going to loans are going to contribute to inflation.
- socialismisok 4y ago
  They are going to contribute, but not much. Fundamentally we are dealing with supply constraints due to war and pandemic.
- houstonn 4y ago
  Only a small portion of that massive omnibus law, and every massive omnibus bill, is needed. The remainder is made up of special interest lobbying and donor class favors.
  - thehappypm 4y ago
    Welcome to government, pal. Every bill in history is like that. Still worth it.
- hotpotamus 4y ago
  I have to say that if the economic system is dependent on siphoning off money from young people in the form of student loans, that already sounds like a system ready to crumble if those young people aren't able to establish themselves financially. My impression of the US is that it's already too far gone into various collapses to really recover, but I don't know what that means for its future.
  - nebula8804 4y ago
    Who is going to replace it? Some people say China, but then the Zeihan POV says their population is too old, they lockdown every three seconds because they still haven't developed a competitive vaccine, and that capital wants to escape the country at record speed seems to indicate its not China (again according the to Zeihan fanboys). Whats the counter argument? I can't see any country overtaking the US. Maybe everyone collapses into a worldwide depression. Maybe thats possible.
  - s1artibartfast 4y ago
    The economic system is in no way dependent on student loan money. where did you get that impression? It is a negligible part of revenue. The main problem with young people financially establishing themselves isn't the loans, it is their choice in careers/degrees.
    - hotpotamus 4y ago
      > The student loan one.. woof. The timing is rough. I know it’s not popular to say, but all those dollars not going to loans are going to contribute to inflation. That was the post above me in the tree.
      - s1artibartfast 4y ago
        I see. I didn't read "contribute" as equivalent to "depends". I can pour gas on house fire, but that doesn't mean it depends on the gas.
        hotpotamus 4y ago
        I'm sure my wording could have been better, but the thought that student debt is large enough to have material effects on inflation for an economy the size of the US was a bit of a revelation to me.
        s1artibartfast 4y ago
- AnotherGoodName 4y ago
  Brave laws in general are needed. One of the problems is labor shortages. We've had policies that have led to the highest prison population and incarceration rate in the western world. There's been little effort on making those in prison employable. 2 million prisoners, many non violent stuck there unable to help with the massive problem society has post COVID. We could fix this to everyone's benefit. Daycare. It allows a small number of adults to enable a much larger number to work. There's no federally funded program towards this yet it's a massive societal force multiplier. Especially for single parents. It's amazing to think we have corporations complaining about labor shortages who also back politicians that promote policies that create labor shortages.
  - PretzelPirate 4y ago
    > Daycare Beyond helping to fund daycare for the parents' sake, we should recognize that early childhood education workers are often paid less than a living wage and finding workers is very challenging. The government should fund living wages as well as subsidies for the parents. Early childhood education is important for child development, and investing in that is investing in the economy.
lkrubner 4y ago
Several trillion dollars were handed by the Trump administration, in response to the Covid-19 pandemic. The uptick in spending is hardly unique to the Biden administration.
houstonn 4y ago
To demonstrate your case, consider what Yellen said earlier this week on Tuesday, October 11th: "I'm not seeing anything in the markets that causes me to be concerned." The next day, October 12th: "I'm concerned about the loss of adequate liquidity in treasuries"
taylodl 4y ago
PPP loan forgiveness is fine, student loan forgiveness is bad. Got it. And our infrastructure is literally crumbling, which is also leading to negative economic consequences.
- Auracle 4y ago
  PPP “loans” were always meant to be forgiven from day 1. They were only called loans because of you used them for things not intended (primarily paying employees) then you needed to pay them back. Student loans were not. Keeping a pause on student loan payments during a time of high inflation and record low employment is absolutely asinine. I also think that most people that think our infrastructure is bad haven’t been outside the United States. Our roads - especially our interstate system - are among the best in the world. Where we have problems is usually down on the state or lower level due to misallocation of funds. Our internet isn’t great, but Starlink has been a real kick in the pants to other providers. Mass transit is lacking but that’s mostly due to people’s choice along with the sheer cost of building out such things in the US.
juve1996 4y ago
The Trump administration threatened the Fed in 2017 when they wanted to raise rates to prevent this. Trump passed huge tax cuts as well, contributing to the massive inflation we're facing today. Not to mention PPP and the stimulus he personally signed the checks on. The entire government failed over 3 different administrations and numerous legislatures leading to this. No one wants to do what's necessary. They just want to score meaningless points for their team, meanwhile our lives continue to get worse.
colinmhayes 4y ago
The conditions that caused Powell/Yellen to claim inflation was transitory have not subsided, in fact they've gotten worse in some ways. Continued lock downs in china means manufactured goods are incredibly scarce. Ukraine war means food and oil and scarce. Obviously they were wrong to say transitory, but not for the reason you seem to think.

thehappypm 4y ago

The infrastructure bill is desperately needed. It’s the best piece of legislation to come in my adult life. It could be the difference between America crumbling into obscurity, or revitalizing the economy. The student loan one.. woof. The timing is rough. I know it’s not popular to say, but all those dollars not going to loans are going to contribute to inflation.

socialismisok 4y ago
They are going to contribute, but not much. Fundamentally we are dealing with supply constraints due to war and pandemic.
houstonn 4y ago
Only a small portion of that massive omnibus law, and every massive omnibus bill, is needed. The remainder is made up of special interest lobbying and donor class favors.
- thehappypm 4y ago
  Welcome to government, pal. Every bill in history is like that. Still worth it.
hotpotamus 4y ago
I have to say that if the economic system is dependent on siphoning off money from young people in the form of student loans, that already sounds like a system ready to crumble if those young people aren't able to establish themselves financially. My impression of the US is that it's already too far gone into various collapses to really recover, but I don't know what that means for its future.
- nebula8804 4y ago
  Who is going to replace it? Some people say China, but then the Zeihan POV says their population is too old, they lockdown every three seconds because they still haven't developed a competitive vaccine, and that capital wants to escape the country at record speed seems to indicate its not China (again according the to Zeihan fanboys). Whats the counter argument? I can't see any country overtaking the US. Maybe everyone collapses into a worldwide depression. Maybe thats possible.
- s1artibartfast 4y ago
  The economic system is in no way dependent on student loan money. where did you get that impression? It is a negligible part of revenue. The main problem with young people financially establishing themselves isn't the loans, it is their choice in careers/degrees.
  - hotpotamus 4y ago
    > The student loan one.. woof. The timing is rough. I know it’s not popular to say, but all those dollars not going to loans are going to contribute to inflation. That was the post above me in the tree.
    - s1artibartfast 4y ago
      I see. I didn't read "contribute" as equivalent to "depends". I can pour gas on house fire, but that doesn't mean it depends on the gas.
      - hotpotamus 4y ago
        I'm sure my wording could have been better, but the thought that student debt is large enough to have material effects on inflation for an economy the size of the US was a bit of a revelation to me.
        s1artibartfast 4y ago
AnotherGoodName 4y ago
Brave laws in general are needed. One of the problems is labor shortages. We've had policies that have led to the highest prison population and incarceration rate in the western world. There's been little effort on making those in prison employable. 2 million prisoners, many non violent stuck there unable to help with the massive problem society has post COVID. We could fix this to everyone's benefit. Daycare. It allows a small number of adults to enable a much larger number to work. There's no federally funded program towards this yet it's a massive societal force multiplier. Especially for single parents. It's amazing to think we have corporations complaining about labor shortages who also back politicians that promote policies that create labor shortages.
- PretzelPirate 4y ago
  > Daycare Beyond helping to fund daycare for the parents' sake, we should recognize that early childhood education workers are often paid less than a living wage and finding workers is very challenging. The government should fund living wages as well as subsidies for the parents. Early childhood education is important for child development, and investing in that is investing in the economy.

lkrubner 4y ago

Several trillion dollars were handed by the Trump administration, in response to the Covid-19 pandemic. The uptick in spending is hardly unique to the Biden administration.

houstonn 4y ago

To demonstrate your case, consider what Yellen said earlier this week on Tuesday, October 11th: "I'm not seeing anything in the markets that causes me to be concerned." The next day, October 12th: "I'm concerned about the loss of adequate liquidity in treasuries"

taylodl 4y ago

PPP loan forgiveness is fine, student loan forgiveness is bad. Got it. And our infrastructure is literally crumbling, which is also leading to negative economic consequences.

Auracle 4y ago
PPP “loans” were always meant to be forgiven from day 1. They were only called loans because of you used them for things not intended (primarily paying employees) then you needed to pay them back. Student loans were not. Keeping a pause on student loan payments during a time of high inflation and record low employment is absolutely asinine. I also think that most people that think our infrastructure is bad haven’t been outside the United States. Our roads - especially our interstate system - are among the best in the world. Where we have problems is usually down on the state or lower level due to misallocation of funds. Our internet isn’t great, but Starlink has been a real kick in the pants to other providers. Mass transit is lacking but that’s mostly due to people’s choice along with the sheer cost of building out such things in the US.

juve1996 4y ago

The Trump administration threatened the Fed in 2017 when they wanted to raise rates to prevent this. Trump passed huge tax cuts as well, contributing to the massive inflation we're facing today. Not to mention PPP and the stimulus he personally signed the checks on. The entire government failed over 3 different administrations and numerous legislatures leading to this. No one wants to do what's necessary. They just want to score meaningless points for their team, meanwhile our lives continue to get worse.

colinmhayes 4y ago

The conditions that caused Powell/Yellen to claim inflation was transitory have not subsided, in fact they've gotten worse in some ways. Continued lock downs in china means manufactured goods are incredibly scarce. Ukraine war means food and oil and scarce. Obviously they were wrong to say transitory, but not for the reason you seem to think.