4 ms·

Could be. They seem to signal the possibility is high. I am in a tl;dr way arguing that it shouldn’t cut rates though. We should re-prioritize government spen

Could be. They seem to signal the possibility is high. I am in a tl;dr way arguing that it shouldn’t cut rates though. We should re-prioritize government spending (especially subsidies) instead, raising taxes appropriately as required. The reality is inflation hit the median household really hard and continues to do so while also getting squeezed on housing costs and other necessities. Without addressing these issues on some level you aren’t really setting the economy up for long term success. I know the reality is we have a deadlocked congress and a lot of state houses aren’t in much better shape either, being just as divided.

toomuchtodo 2y ago
There is usually a delta between the way the world is, and the way we wish the world was. Pull levers you can reach, not the ones you shout at but never move. > Without addressing these issues on some level you aren’t really setting the economy up for long term success. This will take numerous election cycles over decades. Unionization will take time (Gen Z is the most pro union generation alive, but only ~900k workers 55+ in the labor participation force with older anti union mental models age out every year). Understand what actions are short term tactical, and what are long term strategic. Cutting the target funds rate now spins the economy back up over 6-18 months [1]. Rents are coming down because there is a historical amount of rental units coming online [2]. Housing (purchase) will not come down until housing starts remain elevated (which cost of capital is a component of). [1] https://www.journals.uchicago.edu/doi/abs/10.1086/258396 https://www.journals.uchicago.edu/doi/abs/10.1086/258396 ("Friedman on the Lag in Effect of Monetary Policy") [2] https://www.cbsnews.com/news/rent-inflation-federal-reserve-interest-rate-cut/ https://www.cbsnews.com/news/rent-inflation-federal-reserve-...
- no_wizard 2y ago
  Keeping interest rates steady as they are now is long term strategic. The current administration can restructure subsidies already passed by congress. The executive branch has a lot of leeway in how they can qualify spending for example, or what those subsidies can be tied to. There’s billions of dollars in subsidies that can short term be prioritized better by the respective departments without a signal vote in congress needed. For example, they could change how the USDA pays out farming subsidies to prioritize small family farmers. Another thing they could do is tie public school food subsidies to having schools be supplied, whenever possible, by local family farms instead of major conglomerates[0] [0]: if you’re wondering why I’m talking about Agriculture a lot it’s because I finished an in depth study recently of how agricultural subsidies money is allocated and who gets it. Simply it’s freshest in my memory
  - toomuchtodo 2y ago
    Don't lose the passion. I wish you success.
  - toomuchtodo 2y ago
    Perhaps relevant to your interests. https://news.ycombinator.com/item?id=41141225 https://news.ycombinator.com/item?id=41141225

toomuchtodo 2y ago

There is usually a delta between the way the world is, and the way we wish the world was. Pull levers you can reach, not the ones you shout at but never move. > Without addressing these issues on some level you aren’t really setting the economy up for long term success. This will take numerous election cycles over decades. Unionization will take time (Gen Z is the most pro union generation alive, but only ~900k workers 55+ in the labor participation force with older anti union mental models age out every year). Understand what actions are short term tactical, and what are long term strategic. Cutting the target funds rate now spins the economy back up over 6-18 months [1]. Rents are coming down because there is a historical amount of rental units coming online [2]. Housing (purchase) will not come down until housing starts remain elevated (which cost of capital is a component of). [1] https://www.journals.uchicago.edu/doi/abs/10.1086/258396 https://www.journals.uchicago.edu/doi/abs/10.1086/258396 ("Friedman on the Lag in Effect of Monetary Policy") [2] https://www.cbsnews.com/news/rent-inflation-federal-reserve-interest-rate-cut/ https://www.cbsnews.com/news/rent-inflation-federal-reserve-...

no_wizard 2y ago
Keeping interest rates steady as they are now is long term strategic. The current administration can restructure subsidies already passed by congress. The executive branch has a lot of leeway in how they can qualify spending for example, or what those subsidies can be tied to. There’s billions of dollars in subsidies that can short term be prioritized better by the respective departments without a signal vote in congress needed. For example, they could change how the USDA pays out farming subsidies to prioritize small family farmers. Another thing they could do is tie public school food subsidies to having schools be supplied, whenever possible, by local family farms instead of major conglomerates[0] [0]: if you’re wondering why I’m talking about Agriculture a lot it’s because I finished an in depth study recently of how agricultural subsidies money is allocated and who gets it. Simply it’s freshest in my memory
- toomuchtodo 2y ago
  Don't lose the passion. I wish you success.
- toomuchtodo 2y ago
  Perhaps relevant to your interests. https://news.ycombinator.com/item?id=41141225 https://news.ycombinator.com/item?id=41141225