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Some of your points reiterate a framing I often hear from the establishment, which misleads people from understanding the more accurate causes. Lockdown polici
by exoverito 3y ago
Some of your points reiterate a framing I often hear from the establishment, which misleads people from understanding the more accurate causes.
Lockdown policies had much to do with supply chain disruption. Many businesses were willing to stay open but were forced to shut down, which obviously drove prices up due to lack of supply. The lockdowns were an unprecedented level of authoritarianism over what was a bad flu, very creepy and weirdly timed since it was a re-election year, but I digress.
Real wages haven't really increased given the level of inflation and economic distortions. If anything, real wages for average workers were steadily increasing during the Trump administration. According to the Fed analysis using CPI adjusted dollars, so take that with a grain of salt, we can see median weekly real earnings had previously peaked at 345 in Q1 of 2009, remained low during most of the Obama administration, finally returning to 345 in Q4 2015. This level steadily increased until Q1 of 2020 when it was 367. After some major distortions from stimulus checks, unemployment payouts, it spiked to 393 in Q2 of 2020, but is now back down to 365, slightly below where we were before the lockdowns. Except now there's less labor force participation, more homelessness, more crime, etc.
https://fred.stlouisfed.org/series/LES1252881600Q https://fred.stlouisfed.org/series/LES1252881600Q
Gas had been increasing since Biden took office, so it's not accurate to entirely blame it on the Russia-Ukraine war. As we all know gas was very cheap in the US during the Trump administration, at $2.63 per gallon in January of 2020, 2.42 in Jan of 2021 before Biden formally took office, then had increased 3.413 in Jan of 2022 right before the war started.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=e...
Much of the cause for high energy prices are due to green energy policies which subsidize inefficient sources like solar and wind, while penalizing reliable sources like natural gas and nuclear. I know that in California electricity prices have increased significantly, where the Electric Utility Retail Price was already high at 0.164 in January of 2020, and is now at 0.270. This is deceptively low, as I have to pay a connection base rate and peak usage pricing, so it's actually closer to 0.75 / kwH in the evening.
https://ycharts.com/indicators/california_electric_utility_retail_price#:~:text=California%20Electric%20Utility%20Retail%20Price%20is%20at%20a%20current%20level,12.44%25%20from%20one%20year%20ago https://ycharts.com/indicators/california_electric_utility_r....
- shortrounddev2 3y ago> The lockdowns were an unprecedented level of authoritarianism over what was a bad flu, very creepy and weirdly timed since it was a re-election year, but I digress. lol