|
Post by whitebacon on Mar 15, 2024 10:12:02 GMT -5
Is that what the Ministry of Truth told you?😂 Bone up on the news alt fact boy. I'd like to extend you an invitation to come fishing with me. Book a flight to Belize. The flight needs to land in Belize City, with a puddle jumper connection to Caye Caulker. Should be around 4-$500. Find the flight and I will wire you the money. The sooner the better.
|
|
|
Post by cyclist on Mar 15, 2024 10:15:57 GMT -5
Some of you need to understand what inflation is and how it is calculated. Hint, our corrupt incompetent government is still printing billions of dollars a month. And is hiring thousands of people along with state governments. Government spending is increasing thus driving up prices. Nothing will change until the house of cards collapses. No, or at the very least a very minor issue. Inflation is worldwide issue.
Inflation is the biggest problem. But it is an absolute fact that inflation isn't Biden’s fault. The whole world is dealing with inflation. It is a indisputable fact that USA economy is the strongest on the planet in terms of real GDP. And it is a fact that the inflation Americans experience is nothing compared to people living in most advanced economies.
Our national economy isn't the same as our State-Level economies, which cary greatly.
But for sane people that look at the actual numbers, the USA is (on average) doing fine. It has room for improvement, but it isn't on the breach of collapse or anything like the right wing media would have you believe. We aren't about to cease to exist and we aren't paralleling the rest of the world economies due to some globalist-agenda failure. These are just fear-inducing headlines meant to scare people into voting one way. They have to use fear because the actual numbers aren't on their side. That is, the right wing requires you to live in fear of a false reality because objective reality is actually pretty damn decent when their people aren't in charge.
Economic Failure is a State-Level Problem
It does largely depend on where you live. And that points to local government being a problem for some states. If it was a federal government fault, the problems some Americans face would be everywhere, regardless of what state you live in. It simply isn't that case.
Rather, some states are doing quite well and some are damn near failed states. The conditions that define a failed state versus a prosperous one are about the same as they were pre-pandemic and even pre-Trump.
I live in Virginia. One of the top five most prosperous states. Our mean income is above $68,000 and gas prices are around $3 a gallon. We have record low unemployment and employers know it, so salaries are going up naturally due to the need for employees since businesses are back to expanding here.
Our previous governor was a liberal that did pretty well and our current governor is a conservative that also is doing well. The right vs left contrast that we see at a national level doesn't necessarily manifest the same failures at the state level. This is because the people elected at the state level aren't nearly as unqualified and moronic as the candidates that make it to national ballots. Regardless of political leaning, the local government tends to attract at least some competent candidates.
Just a few states have experienced the point of no return, where their economies are so bad that people are fleeing those states, and thus their employers lack both employees and people to sell product to. This forms a vicious cycle that is almost impossible to reverse because their economies get worse as more people flee. The leadership has completely failed the state by making conditions so bad nobody wants to even work on saving such a state. West Virginia is a good example.
The weird thing is that what defines a failed state versus a prosperous one doesn't corelate to the political party of the state government. On a national level it does corelate quite strongly, with prosperity under democrat leadership and the opposite when Republicans are in charge. The only time we have had a surplus was under Clinton and the curve at least becomes less steep when you look at the debt under any democrat president.
But is the debt really the same thing as the economy? Does it actually indicate something bad?
|
|
|
Post by cyclist on Mar 15, 2024 10:38:04 GMT -5
Some of you need to understand what inflation is and how it is calculated. Hint, our corrupt incompetent government is still printing billions of dollars a month. And is hiring thousands of people along with state governments. Government spending is increasing thus driving up prices. Nothing will change until the house of cards collapses. Prove that our government is printing billions of dollars a month. Lets see the facts. You will not be able to prove what you say.
|
|
|
Post by cyclist on Mar 15, 2024 10:43:51 GMT -5
Inflation is generally caused by a increase in money......at least more than one Nobel Laurette in Economics has posited such. As the government creates more dollars and then spreads them around to stimulate the economy there is a increased competition for goods and services......and employees.....all of which drives the cost of those items up. What most folks fail to realize is that unless there is a increase in goods to buy then there is competition for the goods that do get produced. And sense more good can not be produced without more employees, employees who will have to be paid more because there are not enough of them, the price has to go up. Plus.....the cost of all the inputs that go into a product or service go up for precisely the same reason....... A company can not just raise prices, so long as there is competition. It's just not sound economic thinking to believe that in a economy with competing sellers that any one seller can simply raise the price so that they make more money. The talking points just do not hold up to rational examination. Ben, you are trying to rationalize with an audience that get their information from Tik Tok and twitter. But thank you for at least bringing the rational. The reason companies are increasing prices and and reaping huge profits is because Americans are spending more than ever. Demand increased prices.
Americans Are Still Spending Like There’s No Tomorrow Concerts, trips and designer handbags are taking priority over saving for a home or rainy day
WASHINGTON (AP) — A flow of recent data from the U.S. government has made one thing strikingly clear: A surge in consumer spending is fueling strong growth, demonstrating a resilience that has confounded economists, Federal Reserve officials and even the sour sentiments that Americans themselves have expressed in opinion polls.
Spending by consumers rose by a brisk 0.4% in September the government said Friday — even after adjusting for inflation and even as Americans face ever-higher borrowing costs.
Economists caution that such vigorous spending isn’t likely to continue in the coming months. Many households have been pulling money from a shrinking pool of savings. Others have been turning increasingly to credit cards. And the additional savings that tens of millions of households amassed during the pandemic — from stimulus aid and reduced opportunities to travel, dine out and visit entertainment venues — are nearly depleted, economists say.
Still, the truth is no one knows where things go from here, given the unusual nature of the post-pandemic economy. The “death of the consumer” and an ensuing recession have been forecast by most economists for at least a year. So far, not only is no recession in sight but consumers as a whole appear to be in robust health. Spending might cool in the coming months, yet it’s far from clear it will collapse. MORE BUSINESS NEWS FILE - United Auto Workers signs for a strike are shown at the Stellantis Sterling Heights Assembly Plant, in Sterling Heights, Mich., Monday, Oct. 23, 2023. Jeep maker Stellantis has reached a tentative contract agreement with the United Auto Workers union that follows a template set earlier this week by Ford, two people with knowledge of the negotiations said Saturday, Oct. 28, 2023. (AP Photo/Paul Sancya, File) UAW reaches deal with General Motors that ends strikes against Detroit automakers pending votes Tracy Brooks, an auto worker retiree is interviewed as she shows off vintage photos of her family, Wednesday, Oct. 18, 2023, in Romulus, Mich. She and her father, and grandfather and daughter all worked on assembly lines for one or more of Detroit's automakers. "We told Britney Johnson (Brooks' daughter), she's representing our family," Brooks jokes when speaking of her daughter who is among tens of thousands of the union's Ford, General Motors and Stellantis employees who have walked off the job since the strike started Sept. 15. (AP Photo/Carlos Osorio) Some striking UAW members carry family legacies, Black middle-class future along with picket signs FILE - A woman rides past delivery workers who are sorting out parcels on a cart near a luxury watch advertising board at an outdoor shopping mall in Beijing on Sept. 20, 2023. China’s economy slowed in the third quarter, amid muted global demand, deflationary pressures and an ailing property sector. (AP Photo/Andy Wong, File) China’s economy grows 4.9% in Q3, beating expectations but slowing from previous quarter
On Thursday, the government said the economy accelerated at a 4.9% annual rate in the July-September quarter, the fastest such rate since 2021, on the back of a jump in Americans’ spending. People spent on used cars and restaurant meals, airfares and hotel rooms. Much of it, even after adjusting for higher prices, was for discretionary items that suggested that many people feel confident in their finances and job security.
The durability of that spending has caught the attention of Fed officials, who have signaled that they will keep their key interest rate unchanged when they meet this week. But they’ve also made clear that they are monitoring the economic data for any sign that inflation could reignite and require further rate hikes.
“I have been consistently surprised at the resilience of consumer spending,” Christopher Waller, an influential member of the Fed’s board, said in a speech this month.
In the meantime, businesses, especially those in the sprawling service sector, are benefiting from what still appears to be pent-up demand, likely driven by higher-income earners, after the restrictions of the pandemic. Last week, Royal Caribbean Group reported robust quarterly earnings. Travelers crowded their cruise ships and spent more even as the company raised prices.
“The acceleration of consumer spending on experiences (has) propelled us towards another outstanding quarter,” said CEO Jason Liberty. “Looking ahead, we see accelerating demand.”
So what’s behind the outsize gains, so far? Economists point to several drivers: Sturdy hiring and low unemployment, along with healthy finances for most households emerging from the pandemic. Wealthier households, in particular, have enjoyed substantial growth in home values and stock portfolios, which are likely juicing their spending.
Steady hiring has sent the unemployment rate down to a near-five-decade low of 3.8% and lifted to a record high the proportion of women in their prime working years — ages 25 through 54 — who are employed. Measures of layoffs are near historical lows. More jobs mean more income, which generally means more spending.
“We continue to believe that you shouldn’t bet against the consumer until actual job losses are on the horizon,” said Tim Duy, chief U.S. economist at SGH Macro Advisers.
In the July-September quarter, Americans ramped up spending on durable goods — furniture, appliances, jewelry and luggage — that people typically cut back on if they’re worried about their jobs or the economy.
With inflation slowing — it’s at a still-high 3.7%, down from a peak of 9.1% in June 2022 — average wages are starting to outpace price gains. By some measures, wage growth hasn’t yet fully offset the inflation surge that began in 2021. But since late last year, pay has risen faster than prices, likely fueling some spending.
In many lower-paying industries, like hotels, restaurants and warehouses, companies have struggled to find and keep workers and have raised pay accordingly. Julia Pollak, chief economist at ZipRecruiter, calculates that for the lowest-paid 10% of workers, wages have jumped 25% since the first quarter of 2020, when the pandemic began. That’s well ahead of the 18% increase in prices over that time.
And most households started 2023 in better shape than they were in before the pandemic erupted, according to a report from the Fed. The net worth of the median household — the midpoint between the richest and poorest — jumped 37% from 2019 through 2022 as home prices shot higher and the stock market rose. That was the biggest surge on records dating back more than 30 years.
Most of the savings that Americans have accumulated in the past three years have flowed to the wealthiest households, who have splurged on travel and other experiences. Typically, economists say, the wealthiest one-fifth of Americans account for about two-fifths of all spending.
The net worth of the richest one-tenth of households leaped by $28 trillion — or about one-third — from the first quarter of 2020 to the second quarter of 2023, according to the Fed. The poorer one-half of Americans gained a bigger percentage increase but in total dollars much less, from about $2 trillion to $3.6 trillion. (Those figures aren’t adjusted for inflation.)
“When wealth is growing by the amount that it has been the past three years ... I do think that it’s playing a larger role in this spending strength than maybe we thought it would,” said Sarah Wolfe, U.S. economist at Morgan Stanley.
Small-business owners like Bret Csencsitz, managing partner of Gotham Restaurant in New York City, can attest to that. High-dollar spending by middle-age customers has helped replace many of his older patrons who moved out of the city during COVID. These customers, who typically work in technology and finance, are buying $150 to $200 bottles of wine and spending a little over $200 on steak for two.
The average per-person check is up over 20% to roughly $145 compared with the pre-pandemic days, he added, and he has had groups of up to 60 people holding dinners at his restaurant.
“People are back,” he said. “There’s more energy.”
Aditya Bhave, senior economist at Bank of America, noted that the spending isn’t all driven by the affluent. Spending on the bank’s credit and debit cards by households with incomes below $50,000 has risen faster than spending by higher-earning clients.
Some Americans, while keeping a close watch on their finances, still feel they have room to indulge themselves. Consider Valerie Zaffina, a 74-year-old retired teacher who was picking up a piece of jewelry last week at a Kohl’s store in Ramsey, New Jersey. She said she and her husband live on fixed incomes and are cautious spenders.
But Zaffina has nevertheless decided on one big splurge — about $5,000 to decorate her rental apartment, including a $2,500 couch and a $600 rug. It’s her first major decorating project in 18 years.
“I had kind of a frustrating year, and I wanted to do something for myself,” she said. “So, yeah, I’m redecorating. I’m in the throes of that, but I’m sticking to a budget.”
Many analysts still warn of a new crop of headwinds facing consumers and the economy. Nearly 30 million student loan borrowers had to start paying their loans this month, for example. And government dysfunction in Washington could lead to a government shutdown next month.
A report Friday showed that while inflation-adjusted income fell last month along with the savings rate, consumers still ramped up their spending. That trend, economists say, is unsustainable.
Even so, those challenges may not prove as damaging as feared. Student loan payments, for example, jumped even before an Oct. 1 deadline for resuming them, Bhave noted. And few borrowers appear to have taken advantage of a 12-month grace period the Biden administration put in place, suggesting that most borrowers can afford to resume paying the money back — at least for now.
And executives at Visa, which reported strong earnings and a surge of spending by their U.S. credit card customers overseas in the third quarter, have also downplayed the likely impact of student loan repayments.
The company isn’t “factoring in any impacts” from loan repayments “because we’ve yet to see any meaningful impact,” said Visa’s chief financial officer, Christopher Suh. “Consumer spending across all segments from high to low has remained stable since March.”
“There’s a lot of gloom and doom,” around the consumer, Bhave said. “And yet the data keep surprising to the upside.”
|
|
|
Post by tampaspicer on Mar 15, 2024 12:12:51 GMT -5
I don't have a Tik Toc or Twitter/X
|
|
|
Post by johngalt on Mar 15, 2024 13:08:19 GMT -5
Cyclist is good at pasting propaganda from the Ministry of Truth.👍 There is no inflation, no debt and no printing of money. Don’t let your lying eyes deceive you. 😉
|
|
|
Post by oldbastard on Mar 15, 2024 13:12:18 GMT -5
We need us some MAGA up in this bitch
|
|
|
Post by cyclist on Mar 15, 2024 14:58:56 GMT -5
Cyclist is good at pasting propaganda from the Ministry of Truth.👍 There is no inflation, no debt and no printing of money. Don’t let your lying eyes deceive you. 😉 I never saud anything like that. Im saying blaming it on Biden or trump or any one thing is wrong.
|
|
|
Post by throttle on Mar 16, 2024 8:14:23 GMT -5
It's definitely corporate greed that's causing inflation, not retarded monetary policy. Is what a communist would say...
|
|
|
Post by cadman on Mar 16, 2024 8:23:58 GMT -5
It's definitely corporate greed that's causing inflation, not retarded monetary policy. Is what a communist would say... Who or what is responsible for monetary policy? Who controls the money supply? Who controls spending? Do you think supply and demand of a product does not affect price?
|
|
|
Post by johngalt on Mar 16, 2024 9:16:15 GMT -5
Most people cannot comprehend what a Trillion really is.
|
|
|
Post by johngalt on Mar 16, 2024 9:17:57 GMT -5
Cyclist is good at pasting propaganda from the Ministry of Truth.👍 There is no inflation, no debt and no printing of money. Don’t let your lying eyes deceive you. 😉 I never saud anything like that. Im saying blaming it on Biden or trump or any one thing is wrong. Yes you can blame it on one thing. Big, bloated out of control government. And people like you and others who expect government to coddle you from cradle to grave.
|
|
|
Post by cyclist on Mar 16, 2024 9:49:28 GMT -5
I never saud anything like that. Im saying blaming it on Biden or trump or any one thing is wrong. Yes you can blame it on one thing. Big, bloated out of control government. And people like you and others who expect government to coddle you from cradle to grave. Not true. Every nation in the world is being hit by the same inflation we are and its not our government causing it. America is doing better controlling inflation than almost every other country.
|
|
|
Post by luapnor on Mar 16, 2024 21:53:32 GMT -5
Some of you need to understand what inflation is and how it is calculated. Hint, our corrupt incompetent government is still printing billions of dollars a month. And is hiring thousands of people along with state governments. Government spending is increasing thus driving up prices. Nothing will change until the house of cards collapses. Prove that our government is printing billions of dollars a month. Lets see the facts. You will not be able to prove what you say. Not surprising you think this....you think co2 causes global warming too. Just a basic tool of the tyrants...congrats.
|
|
|
Post by johngalt on Mar 17, 2024 8:20:33 GMT -5
Yes you can blame it on one thing. Big, bloated out of control government. And people like you and others who expect government to coddle you from cradle to grave. Not true. Every nation in the world is being hit by the same inflation we are and its not our government causing it. America is doing better controlling inflation than almost every other country. Hey kids,,, this is one of many reasons not to do drugs. 🤓
|
|