2021 began with economists arguing about $1,400 stimulus checks. Americans got them, but they got higher inflation too. Even so, the checks were very good policy.
Not knowing how our money works was the cause of failing to act rapidly & correctly in 2020
Those who knew how money operates knew that when our USA-FED-GOV needs a country which is free of people infected by a communicable airborne disease that need then becomes a provision which our country’s USA-FED-GOV can pay to acquire
Our USA-FED-GOV could have afforded the immediate hiring of every citizen & of every person visiting (by invitation or misadventure) as Emergency Public Health Employees
Our USA-FED-GOV could have afforded the immediate paying of each EPH employee a weekly amount of money of $25 an hour for each of the 24 hours in a day (keeping distant to prevent disease transmission is 24-Hour work) for a weekly salary of $25 x 24 hours x 7 days
Our USA-FED-GOV could have afforded paying EPH employees for 42 days of country-wide isolation which is an amount of time of disruption of non-emergency commerce far less than has occurred.
When one knows how money operates solutions appear to so many problems that stump the unknowing.
note: The people who know how money operates are alive. You can ask them.
Plain and simple about 15+/- yrs ago a single family on 1 construction workers income could afford AT LEAST TWICE what they can now. I make the a few $ more than my dad was pre Obama (pre his forced retirement), but my wife has to work too so we can afford about what my family did growing up……math is math, Anyone that can’t see the fact that maybe family’s income did go up during the Obama welfare state, and maybe some ppl are getting paid more now after these INSANE stimulus checks that only like 10% of the money went to covid…. (but anyway) HAS BEEN AND IS A HORRIBLE THING FOR THIS COUNTRY AND ECONOMY in the long run is just ignorant of how economics work. Yea pay went up, BUT NOT AS MUCH AS THE COST OF LIVING DID….it’s simple math In 2021 so far inflation is up 6% (or maybe that was 2020, but either way)!!! In a single year…..!!!??? Hey I made $20k more but hey that house I wanted costs $50k more or that car cost $15k more, or that bottle of coke is $3 instead of $1.75 and milk is $4 instead of $2……gas was half the price it is now only 1-1/2 yes ago! If we don’t fix this mess that Congress and Obama created this country will be totally bankrupt in a matter of years and that’s when the Socialists will REALLY push for socialism and people that don’t remember PRE OBAMA days (good American days) will fall for it too. Just think most jobs USED to do a 3% inflation pay raise every year, now your real real lucky to get 2% but inflation went up 6%. MATH IS MATH
Very much so agree to the outcome. An increase in the M1 was critical in outpacing velocity degradation. I think these lessons are going to especially shine as we now deal with the breakdown of the supply chain and feel the full force of globalized COVID, and the banking and housing crisis happening across the world.
Central Bank economists should take heavy note that the M1 money pool is the most important, it just is. It is the workers economy, it is the lifeblood of the society and country that you serve. Any policy that allows for a fractionalization of the M1 economy and allows the velocity of money to drift out of and into the hands of the uber-wealthy, the worse the inflationary effects of a growing economy are felt. Inflation just is a fact of life, as the world grows, as more countries develop and need everything, demand will increase and supply will become scarcer and scarcer. And with the upcoming labour doom, especially hard-felt now during this labour squeeze, everything just continues to get worse and worse.
Eventually these stimulus checks are going to turn into Universal Basic Income, because the total human work hours needed for cumulative production will turn into an inconceivably small portion that working 40 hours per week will seem like the new 80, just because that is how the future develops. We increasingly need less work hours for a skyscraper, a drug for cancer, a novel technology that benefits humanity. And we are still in the early logarithmic phase for growth.
But all of this is a lover's dream. Macro-economy for the soul.
Enjoyed the article and thorough research! Would be careful underestimating inflation numbers in some of the graphs! Official CPI/PPI (even Michigan expectations) undercut inflation. Using the 1990s formulas for CPI gives us about a 6.5% floating inflation number per year, showing our economy has been in a recession for quite a long time.
Not knowing how our money works was the cause of failing to act rapidly & correctly in 2020
Those who knew how money operates knew that when our USA-FED-GOV needs a country which is free of people infected by a communicable airborne disease that need then becomes a provision which our country’s USA-FED-GOV can pay to acquire
Our USA-FED-GOV could have afforded the immediate hiring of every citizen & of every person visiting (by invitation or misadventure) as Emergency Public Health Employees
Our USA-FED-GOV could have afforded the immediate paying of each EPH employee a weekly amount of money of $25 an hour for each of the 24 hours in a day (keeping distant to prevent disease transmission is 24-Hour work) for a weekly salary of $25 x 24 hours x 7 days
Our USA-FED-GOV could have afforded paying EPH employees for 42 days of country-wide isolation which is an amount of time of disruption of non-emergency commerce far less than has occurred.
When one knows how money operates solutions appear to so many problems that stump the unknowing.
note: The people who know how money operates are alive. You can ask them.
Plain and simple about 15+/- yrs ago a single family on 1 construction workers income could afford AT LEAST TWICE what they can now. I make the a few $ more than my dad was pre Obama (pre his forced retirement), but my wife has to work too so we can afford about what my family did growing up……math is math, Anyone that can’t see the fact that maybe family’s income did go up during the Obama welfare state, and maybe some ppl are getting paid more now after these INSANE stimulus checks that only like 10% of the money went to covid…. (but anyway) HAS BEEN AND IS A HORRIBLE THING FOR THIS COUNTRY AND ECONOMY in the long run is just ignorant of how economics work. Yea pay went up, BUT NOT AS MUCH AS THE COST OF LIVING DID….it’s simple math In 2021 so far inflation is up 6% (or maybe that was 2020, but either way)!!! In a single year…..!!!??? Hey I made $20k more but hey that house I wanted costs $50k more or that car cost $15k more, or that bottle of coke is $3 instead of $1.75 and milk is $4 instead of $2……gas was half the price it is now only 1-1/2 yes ago! If we don’t fix this mess that Congress and Obama created this country will be totally bankrupt in a matter of years and that’s when the Socialists will REALLY push for socialism and people that don’t remember PRE OBAMA days (good American days) will fall for it too. Just think most jobs USED to do a 3% inflation pay raise every year, now your real real lucky to get 2% but inflation went up 6%. MATH IS MATH
Very much so agree to the outcome. An increase in the M1 was critical in outpacing velocity degradation. I think these lessons are going to especially shine as we now deal with the breakdown of the supply chain and feel the full force of globalized COVID, and the banking and housing crisis happening across the world.
Central Bank economists should take heavy note that the M1 money pool is the most important, it just is. It is the workers economy, it is the lifeblood of the society and country that you serve. Any policy that allows for a fractionalization of the M1 economy and allows the velocity of money to drift out of and into the hands of the uber-wealthy, the worse the inflationary effects of a growing economy are felt. Inflation just is a fact of life, as the world grows, as more countries develop and need everything, demand will increase and supply will become scarcer and scarcer. And with the upcoming labour doom, especially hard-felt now during this labour squeeze, everything just continues to get worse and worse.
Eventually these stimulus checks are going to turn into Universal Basic Income, because the total human work hours needed for cumulative production will turn into an inconceivably small portion that working 40 hours per week will seem like the new 80, just because that is how the future develops. We increasingly need less work hours for a skyscraper, a drug for cancer, a novel technology that benefits humanity. And we are still in the early logarithmic phase for growth.
But all of this is a lover's dream. Macro-economy for the soul.
Enjoyed the article and thorough research! Would be careful underestimating inflation numbers in some of the graphs! Official CPI/PPI (even Michigan expectations) undercut inflation. Using the 1990s formulas for CPI gives us about a 6.5% floating inflation number per year, showing our economy has been in a recession for quite a long time.