Y’all need to just give up things like eating meat and health care for your pets
Inflation stings most if you earn less than $300K. Here's how to deal:
?? Take the bus
?? Don’t buy in bulk
?? Try lentils instead of meat
?? Nobody said this would be fun https://t.co/HGJEoXL5ZZ— Bloomberg Opinion (@opinion) March 19, 2022
From this insane “let them eat cake” bit (yes, I know what was really meant, but, we know the modern meaning)
(Bloomberg) For those earning much less, it’s a different story. Those at the median, with income of about $50,000, spend more than 3% of it on gas and motor oil. Low-income households making between $7,000 and $19,000 spend about 9%. The latest inflation numbers show gas prices jumped 6.6% in February from a month earlier — even before President Joe Biden banned U.S. imports of Russian oil.
Economists say the overall share of income spent on gas is lower than it used to be, and despite the increases, prices are still relatively low by historical standards. That’s true, but it offers little consolation these days for someone on the lower end of the income distribution who drives to work.
Food prices are also up, posting their biggest monthly increase since April 2020. There, too, those making less than $19,000 spend much more of their income — almost 15% — compared with higher earners, whose total food spending is just 4% of their income. Households with income of about $50,000 spend 8.5% of it on food.
So, really, the $300K number was just a canard. Those making a lot less, which is more the norm, are suffering.
To deal with gas prices, it’s worth reconsidering public transportation if it’s an option where you live. Fares are up about 8% compared with 38% for gasoline. Now may even be the time to sell your car. It certainly isn’t the time to buy a new or used one. Prices have stabilized a bit, but used-car prices are still up more than 40% from a year ago, and new ones are up 12%.
So, just sell your cars, peasants, and take the bus. And definitely give up your weekly helicopter flight to your beach house in Delaware or wooded camp.
When it comes to food, don’t be afraid to explore. Prices for animal-based food products will certainly increase. Ukraine and Russia supply a significant amount of corn and barley to the world market, mainly to feed livestock for human food. Meat prices have increased about 14% from February 2021 and will go up even more. Though your palate may not be used to it, tasty meat substitutes include vegetables (where prices are up a little over 4%, or lentils and beans, which are up about 9%). Plan to cut out the middle creature and consume plants directly. It’s a more efficient, healthier and cheaper way to get calories.
Suffer, peons
If you’re one of the many Americans who became a new pet owner during the pandemic, you might want to rethink those costly pet medical needs. It may sound harsh, but researchers actually don’t recommend pet chemotherapy — which can cost up to $10,000 — for ethical reasons.
You can always eat them, right?
Try to be as flexible and creative as possible. Scientists tell us our brain plasticity will improve by trying novel things. There’s an advantage to mixing up what you consume to cope with unusual price spikes: You become more resilient as you create a locus of control and interrogate your habits.
Or, the government could do the exact opposite of what they’re doing now to allow the economy to surge.
Exactly. The Soviets proved decades ago that central planning doesn’t work. Why, then, can’t our “elites” figure it out?
William Teach: Or, the government could do the exact opposite of what they’re doing now to allow the economy to surge.
Real GDP in the U.S. increased 5.7 percent in 2021, 7.0 percent in the last quarter. The economy *is* surging. That is causing bottlenecks, and that results in inflation. Now, with the Ukraine war, you can expect additional pressures on prices.
Sooo according to you backassward economics the worse shit gets the better we’re doing”?
You, like all leftists not only quote but believe fake numbers put out by partisan government agencies to support their failed pilicies and politicians. Inflation tight now is probably around 20-25%. Allowing the government to not count some of the most important consumer goods is a BS trick.
Zachriel be honest, if all this shit was happening under a Republican would you be saying the same thing? I ask because you didn’t when things were ten times better under Trump. So rather than question authority, especially when your eyes and common sense must be telling you they’re lying, has now become the radical left’s operating mode until a Republican is back in the White House? It must be because we can’t believe you’re that stupid as to believe the same liars over and over, watch the same mistakes and the prices soar over and over without question.
Partisan politics has rotted your ability to think. You must be a dOwdist.
FJB, LOL
Actually, I’m a zachrielist. And Brand0 is a tRumpist.
Mr Z wrote:
Yet prices increased, measured by year-over-year inflation, 7.5% in January and 7.9% in February. More importantly, average wages increased 5.7%, year-over-year, both months, meaning that the average wage earner was 1.8% poorer as measured in January, and 2.2% poorer as measured in February.
Remember: the January and February data were compiled before the invasion of Ukraine. The March YOY inflation rate has been guesstimated at 8.2% in one place I’ve seen, but we won’t know that until into April.
Of course, 2021’s economic gains were inflated by the artificially induced recession caused by the idiotic COVID-19 lockdowns and restrictions.
The economist Dana: Yet prices increased, measured by year-over-year inflation, 7.5% in January and 7.9% in February.
Real GDP, as cited above, accounts for growth above inflation. That doesn’t mean inflation is inconsequential, especially for those in lower income brackets.
The economist Dana: Remember: the January and February data were compiled before the invasion of Ukraine. The March YOY inflation rate has been guesstimated at 8.2% in one place I’ve seen, but we won’t know that until into April.
Quite possibly. There will be a cost associated with responding to Russia’s aggression against Ukraine.
Not only is inflation and GDP linked. Almost intertwined but the fact that you are touting GDP growth means little to the health and wellbeing of the citizens in the current geopolitical setting.
Simple GDP growth can be caused by any number of things and usually, inflation and GDP growth go hand in hand. The fact that in 2008 the FED decided to use Quantitative Easing or the repurchase of their own bonds showed that GDP growth and inflation can be balanced by cooking the books.
In effect the FED has used a Ponzi Scheme on the US Economy for over a decade and a half and unfortunately for them, they then printed 80 percent of the money ever printed by the USA in the last two years.
This has created instability which makes Zach’s Investopedia reasoning reckless, feckless, and with little merit. Because if you do not take drastic measures against rapidly rising inflation it will morph into Hyperinflation.
The Biden Administration is using the same tactics Trump used. GDP growth and the stock market while trying to minimize inflation. It is true that Trump had little problems with inflation but that is because for the first three years of his term he was still benefiting from near-zero interest rates, a stable world economy, and a stable jobs market within the USA.
No one accounted for Covid and now the Russian invasion where the effects of the sanctions will harm the west much more drastically than they will Russia. These sanctions will drive hyperinflation as the USA in its infinite wisdom will return to spending to squelch a recession and this spending will drive inflation higher until we are stuck in a feedback loop of hyperinflation.
At that point it does not matter what the GDP is, because the GDP measures the health of the economy and this economy is sick beyond reason due to supply-side shortages, political turmoil around the world, and inflationary pressures that are driving wages higher which in turn feeds the feedback loop of hyperinflation.
This information was provided to me by a colleague who specializes in Economics.
Est1950: Almost intertwined but the fact that you are touting GDP growth means little to the health and wellbeing of the citizens in the current geopolitical setting.
GDP is just one measure of economic well-being. With high income inequality, as seen in the U.S., there may still be pain within lower income groups.
Est1950: Simple GDP growth can be caused by any number of things and usually, inflation and GDP growth go hand in hand.
We cited real GDP, meaning it is adjusted for inflation.
Est1950: Because if you do not take drastic measures against rapidly rising inflation it will morph into Hyperinflation.
It’s certainly possible. However, while taking actions to rein in inflation (increasing taxes, raising interest rates), you would want to avoid a recession which would only exacerbate the problem. Notably, the Fed just raised interest rates, and will probably do so again.
Est1950: No one accounted for Covid and now the Russian invasion where . . .
The U.S. was running a cash surplus as recently as 2000. Paying down debt and putting money aside for “a rainy day” is just prudent policy, and consistent with countercyclical admonitions.
Est1950: the effects of the sanctions will harm the west much more drastically than they will Russia.
That’s not true. Russia’s economy will sustain substantial and long-lasting economic damage. The West will pay a price, but not nearly as high. That’s because the West has vast economic, financial, and material resources, along with strong markets that can more rapidly adjust to the new conditions. Even the U.S., with its unnecessarily high debt, has far more resources than Russia. Russia is a kleptocracy, corruption is found at every level of society, and markets are stifled by monopolistic practices.
Est1950: At that point it does not matter what the GDP is, because the GDP measures the health of the economy and this economy is sick beyond reason due to supply-side shortages, political turmoil around the world, and inflationary pressures that are driving wages higher which in turn feeds the feedback loop of hyperinflation.
Of course, GDP matters. However, it’s not all that matters. Supply-side shortages can be rectified through market signals. Inflationary pressures are a concern. Some are due to the pandemic. Some are due to the war in Ukraine. And some are due to a generation of Americans not wanting to pay the taxes necessary to pay for the programs they want. Gee whiz. Just the infrastructure problem is decades in arrears.
When the government adds over $2 trillion in fiat money to the national debt it is quite amazing how the GDP increases a little over $2 trillon.
Some surge.
STFU.
#LetsGoBrandon
#FuckJoeBiden
Bwaha! Lolgf
At my local Walmart, Red Baron frozen pizza has went from $3.00 to $4.40 in the past year.
There has never been a shortage.
Tell me again about those “supply chain bottlenecks.”
James Lewis: At my local Walmart, Red Baron frozen pizza has went from $3.00 to $4.40 in the past year.
Supply chain includes inputs, delivery, machinery, and labor.
For instance, see Pizza Marketplace
https://www.pizzamarketplace.com/articles/experts-weigh-in-on-supply-chain-issues/
If all of the separate components went up 6%, the new price would be 6% higher…
Or at least that was true when “the total equals the sum of the parts.”
So what part went up around 50%????
James Lewis: So what part went up around 50%????
Businesses are having to source inputs sideways, bypassing their normal suppliers. This can mean much higher prices in the short run. That, and a dearth of labor.
“Businesses are having to source inputs sideways, bypassing their normal suppliers. This can mean much higher prices in the short run. That, and a dearth of labor.”
And what components of a pizza went up 50%?…
I think veggies have went up 7% or there about…. Meat? 14%….
“Businesses are having to source inputs sideways, bypassing their normal suppliers. This can mean much higher prices in the short run. That, and a dearth of labor.”
And what components of a pizza went up 50%?…
I think veggies have went up 7% or there about…. Meat? 14%….
James Lewis: And what components of a pizza went up 50%?…
You may be having local supply problems. Frozen goods have not seen that high of inflation over the last year. Grocers will sometimes buy from higher-priced sources to keep the product on the shelf.
https://fred.stlouisfed.org/series/WPU02850111
The example is from Walmart.
There is no reason besides simple greed…. and/or a fear that inflation will spiral completely out of control.
James Lewis: There is no reason besides simple greed…. and/or a fear that inflation will spiral completely out of control.
Simple greed wouldn’t typically explain a rise in prices, assuming a competitive market. We posted the inflation rate for the product category.
L.G.Brandon!, L.G.Brandon!: Sooo according to you backassward economics the worse shit gets the better we’re doing”?
The economy is rapidly expanding, but there are growing pains. This is standard economics. When the economy expands rapidly, demand increases for everything from raw materials to finished goods. It takes time for the market to react, so there will not enough supply to meet the growing demand. Hence, prices tend to increase in a rapidly growing economy. This is exacerbated by uncertainty due to the whipsawing of the U.S. economy from the pandemic, and now the war in Ukraine.
L.G.Brandon!, L.G.Brandon!: Inflation tight now is probably around 20-25%.
Making stuff up is not much of an argument.
L.G.Brandon!, L.G.Brandon!: if all this shit was happening under a Republican would you be saying the same thing?
The laws of economics don’t change because of a change in administration.
L.G.Brandon!, L.G.Brandon!: I ask because you didn’t when things were ten times better under Trump.
The economy collapsed under Trump, just like it did under the previous Republican president.
Oh, the irony…
The economy collapsed because governors and local politicians decreed lockdowns and other idiotic measures. Trump ordered no such things.
Thanx again for another target-rich environment! You’re always dependable that way.
…and MORE irony:
Making stuff up is not much of an argument.
alanstorm: The economy collapsed because governors and local politicians decreed lockdowns and other idiotic measures.
The claim was economic “things were ten times better under Trump.” That wasn’t an accurate statement.
As for the pandemic, some economic damage was inevitable. Cutting taxes on the rich during an expansion left the U.S. fiscal situation much worse off than it would otherwise would have been. Mishandling of the pandemic meant the U.S. paid a huge economic price and still suffered a million deaths.
But you know: A trillion here, a trillion there, and pretty soon you’re talking real money.
Zachriel: ” The claim was economic “things were ten times better under Trump.” That wasn’t an accurate statement.”
That wasn’t a “claim” it was an off-the-cuff comment to make a point which went right over your head. Do you take every word literally or only when you’re trying avoid facing the truth? I could have said the economy was the same as under Trump but we all know $5.49 for gas and watching the prices on everything from candy to Cadillacs shoot up would paint a different picture.
FJB and his cadre of communists have ruined the American economy in less that a year. For you to deny that is for you to deny the observable and quantifiable truth and that would make you a big fukin liar. Are you a big fukin liar Zachriel?
You can argue whether things were ten times better under Trump or a thousand times better under Trump but the fact remains he had better economic results than FJB, better international results than FJB including but not limited to Israel relations and he had more respect from world leaders than this wimp/fool/fag FJB ever could have.
You guys lied and cheated to put FJB in the WH now you’ve got to lies and obfuscate to keep the fukin idiot there. That makes all of you idiots.
FJB, LOL.
L.G.Brandon!, L.G.Brandon!: Do you take every word literally
We assume you use words to convey your meaning. If you meant something different, then you should just clarify your meaning.
L.G.Brandon!, L.G.Brandon!: FJB and his cadre of communists have ruined the American economy in less that a year.
The U.S. economy is hardly ruined in one year. It suffered a significant drop in output due to the pandemic and the botched handling of the pandemic, but it rapidly recovering.
L.G.Brandon!, L.G.Brandon!: the fact remains he had better economic results
Except that’s not true. The economy collapsed in Trump’s last year undoing much of the previous tepid growth during his term. Now, you can blame exogenous factors, but that doesn’t change it to “better results” than the current, rapidly growing economy.
“The economy collapsed under Trump, just like it did under the previous Republican president.”
In 2008 the price of oil skyrocketed because of an “expected” shortage.
The Democratic controlled House refused to try and expand drilling.
In July 2008 Bush opened up off shore drilling. Oil prices went down. But it was too late. The economy continued falling and a Democratic, Obama, was elected. In Jan 2009 Obama shut down drilling on Federal land and the economy continued to fall. The DJIA hit bottom at around $1600. in Feb 2009.
There was no oil shortage then and there is none now.
In Jan 2021 gas prices started an upward trend when Biden started his war on the oil companies, creating an expectation of shortages.
The economy can’t take $4.00 gas.
It’s gonna be a bumpy ride.
James Lewis: In 2008 the price of oil skyrocketed because of an “expected” shortage.
That wasn’t the cause of the financial meltdown, but toxic securities gamed to be quality.
James Lewis: The economy can’t take $4.00 gas.
That’s odd. Much of Europe has paid far more than $4 per gallon for gas for a generation, yet they are among the most economically developed nations.
https://www.globalpetrolprices.com/gasoline_prices/Europe/
Gas is relatively high because the global economy is rapidly expanding, and as production had been cut back due to lack of demand during the pandemic. It’s not actually that high for an expansionary period.
https://i.redd.it/1gwmclaxgel81.png
Actually the Fed’s actions had stabilized the housing market crisis, which had been caused by the Democrats.
“”Fannie Mae has expanded home ownership for millions of families in the 1990’s by reducing down payment requirements,” said Franklin D. Raines, Fannie Mae’s chairman and chief executive officer. ”Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.”
http://tallcotton-ppjakajim.blogspot.com/2008/10/barney-franks-herb-moses-bill-clinton.html
Europe is much smaller than the US. E.g. Germany is about the size of Wisconsin. Plus, it has had, and still does, cheap affordable travel by train/busses both intra and inter countries.
Along with that they had cheap healthcare, leaving money to be absorbed by taxes and travel.
The world wide economy was expanding in 2019…2020…. Gas is expensive because Biden has created the expectation that there will be a shortage because drilling has been limited… The oil companies are merely pricing forward.. something the stock markets always do…
Quit making excuses.
James Lewis: ”Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.”
So? If the mortgages weren’t securitized as AAA bonds, it wouldn’t have mattered. The wholesale price would have adjusted to the higher risk. Instead, the securitizers gamed the system to market subprime as prime. That, and lack of transparency meant that when the crunch came, no one knew who was holding the toxic securities. If you can’t trust Citibank to pay its debts, then what chance does Ahmed Johnson have to get a loan? The global banking system froze up—literally.
James Lewis: Plus, {Europe} has had, and still does, cheap affordable travel by train/busses both intra and inter countries. Along with that they had cheap healthcare, leaving money to be absorbed by taxes and travel.
Well, if you are saying the U.S. keeps making huge blunders in investment and planning, then yeah. The U.S. can’t even maintain its basic infrastructure.
James Lewis: The world wide economy was expanding in 2019…2020
Calendar year, Real GDP growth%
2017, 2.72
2018, 2.32
2019, 2.57
2020, -2.26
2021, 5.56
The U.S. economy did expand from 2017-2019. That’s when the U.S. should have set money aside for “eventualities,” instead of cutting taxes on the wealthiest Americans. You never know. Something might happen.
James Lewis: Gas is expensive because Biden has created the expectation that there will be a shortage because drilling has been limited…
Gas is high because demand dropped during the pandemic and production was curtailed. Demand then dramatically increased, and it takes time for production (of all products) to catch up with the increased demand. With the uncertainty due to the war in Ukraine, producers are being cautious.
” producers are being cautious.”
Yes, and that caution started a few days after Biden was declared the thief… oops…”winner.”
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epmr_pte_nus_dpg&f=w
BTW – That’s 11/23/20.
“The U.S. can’t even maintain its basic infrastructure…”
As Obama proved with his “construction ready projects” and now Biden doubles down with more lies.
“…2017-2019. That’s when the U.S. should have set money aside….”
https://history.house.gov/Institution/Party-Divisions/Party-Divisions/
My memory says that Democrats had control of the House 2019 and 2020.
” So? If the mortgages weren’t securitized as AAA bonds, it wouldn’t have mattered.”
Well, Bush tried.
“The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.”
You guys opposed it.
http://tallcotton-ppjakajim.blogspot.com/2008/09/bring-in-more-clowns.html
“…it takes time for production (of all products) to catch up….”
Yes, probably a whole month for oil.
You are a world class excuser.
James Lewis,
Stop making excuses!
Uh, I’m saying that Biden and his Man Made Global Warming cohorts are the cause of oil prices going up up up.
You folks are the ones with the excuses.
Um, I’m saying you are wrong. The U.S. president does not control the price of global crude oil.
James Lewis: Yes, and that caution started a few days after Biden
Prices were depressed, as they usually are, because of the recession. Demand dropped, so prices dropped. Suppliers cut production to meet the lower demand. The economy is growing rapidly, so there has been a sharp increase in demand, so prices have risen. How did you think it worked?
James Lewis: As Obama proved with his “construction ready projects”
The infrastructure investment from the American Recovery and Reinvestment Act was only about 4% of what is required. In other words, Americans want the benefit, but don’t want to pay for it.
James Lewis: My memory says that Democrats had control of the House 2019 and 2020.
Trump’s tax cuts were passed in 2017.
The U.S. economy did expand from 2017-2019. That’s when the U.S. should have set money aside for “eventualities,” instead of cutting taxes on the wealthiest Americans. You never know. Something might happen.
Priceless.
How would you set money aside with today’s government? You know, I know and they know that NO DOLLAR is safe. Tax cuts helped the middle class and the wealthy only because those are the people that pay taxes. The government could not set aside a single dollar if they wanted too.
Tax cuts simply put more money in the pockets of the rich, who then offshore it. However even the left has admitted (Except ZACH aka ELWOOD and hairy) Trump’s tax cuts really did help out the middle class.
Trump tax cuts and the middle class: Here are the facts
Published: Feb 13, 2019
Author: Alex Hen…
In addition to these employee benefits, America’s middle class is seeing direct tax relief. A family of four with annual income of $73,000 is seeing a 60 percent reduction in federal taxes
IRS data proves Trump tax cuts benefited middle, …
Dec 04, 2021 · That means most middle-income and working-class earners enjoyed a tax cut that was at least double the size of tax cuts received by households earning $1 million or more.
And the BLOOMBERG NETWORK the owner of which ran for the DEMOCRATIC NOMINATION FOR PRESIDENT and said he would spend billions defeating trump.
The Trump Tax Cut Wasn’t Just for the Rich – Bloomberg
Oct 27, 2020 · While the Tax Cuts and Jobs Act of 2017 was far from perfect, it did cut taxes on the middle class and fueled the economic growth that brought unemployment rates to half
One of the main authors at the Atlantic was bragging after Trump was defeated how the left hornswoggled the world into believing Trump’s tax cuts really did not help the middle class.
Face It: You (Probably) Got a Tax Cut – The New York Times
Apr 14, 2019 · It continued through Mr. Trump’s signing of the law, even though the group’s models showed that the revised bill would raise taxes
What YOU the voter should face is the fact the LEFT ARE LIARS. Everything they believe. Everything they try to get you to believe is a half truth or downright lie.
So endeth the sermon for today.
Amen, brother.
Preach it!
#LetsGoBrandon
#FuckJoeBiden
Bwaha! Lolgf
Lost and Found: How would you set money aside with today’s government?
By running a cash surplus.
Lost and Found: You know, I know and they know that NO DOLLAR is safe.
The U.S. ran a cash surplus as recently as 2000. Two candidates vied for the presidency. One promised a “lock box” to secure the cash surpluses. The latter promised tax cuts. Due to a peculiarity in the electoral process, the latter candidate won the election.
Lost and Found: Tax cuts helped the middle class and the wealthy only because those are the people that pay taxes.
The very wealthy don’t pay significant taxes. They borrow, spend, die.
Lost and Found: Tax cuts simply put more money in the pockets of the rich, who then offshore it.
Tax cuts for wealthier people don’t act well as an economic stimulus. As you note, the money is typically saved, but it can provide investment capital for longer term investment.
Lost and Found: Trump’s tax cuts really did help out the middle class.
Tax cuts don’t help anyone if they increase debt without a corresponding longer term benefit. It just means the middle class will probably get stuck with the bill. The top 1% received 2/3 of the tax benefit from the Trump tax cuts.
The Clinton administration took a victory lap with their projected surplus. However, then-Federal Reserve Chairman Alan Greenspan was reminding people that the Social Security Administration was sitting on approximately $10 trillion in unfunded promises.
A study by a Harvard professor showed that if the program were administered using the same accounting methods required by private pension plans, Social Security was actually running a $500 billion deficit each year.
Why were Greenspan’s and Jackson’s alarming statements so different from Clinton’s rosy picture?
Excluding Social Security obligations from the national debt allowed the White House to claim a surplus while the government’s financial obligations were actually increasing (this practice still exists, with the official national debt figures omitting $83 trillion in future Social Security bills).
This financial approach is not dissimilar to the infamous Enron accounting methods, where huge liabilities are not included on balance sheets. This is why so many people refer to government accounting as a giant Ponzi Scheme.
In the federal government’s case, vast sums promised and owed for future Social Security and Medicare recipients are kept off the balance sheet. Clinton was able to claim surpluses because the Treasury Department was recording this money as revenue.
Taxing the rich at 100 percent would only put a 1-2 trillion dent in the debt. This again is why people like Zach are not Financial experts but are great with Talking points. Remember that when Zachriel does his line-by-line refutation of your posts here. He is simply using talking points that are not based on, in this case, sound financial wisdom.
With over a 100 trillion dollar deficit. There is no such thing as setting money aside. It is gobbled up the instant it reaches the government’s hands.
Est1950: The Clinton administration took a victory lap with their projected surplus.
They were actual cash surpluses along with projected surpluses.
Est1950: However, then-Federal Reserve Chairman Alan Greenspan was reminding people that the Social Security Administration was sitting on approximately $10 trillion in unfunded promises.
Which is better? Having low debt and facing a shortfall in Social Security? Or having high debt and facing a shortfall in Social Security?
ZACHRIEL aka DOWD posted: They were actual cash surpluses along with projected surpluses.
NO, they WERE NOT….the FED pointed out there was 10 trillion in unfunded SSI and medicare liabilities and………
And……..
And the Government counts the income from payroll taxes intended for SSI and Medicare but they DO NOT INCLUDE THESE PAYMENTS as part of the debt.
That is akin to saying I have a total monthly income of 3000 dollars and all my bills mount up to 2900 dollars therefore I have a budget surplus. but I don’t count gasoline for my car which is 200 dollars per month. Do I have a surplus? Uh no. This is the government’s official accounting in a nutshell and exactly what EST was pointing out.
Facts Matter: NO, they WERE NOT….the FED pointed out there was 10 trillion in unfunded SSI and medicare liabilities
A cash surplus is when you take in more money than you spend. The U.S. had a cash surplus in 2000, with projections for continued cash surpluses going forward.
Facts Matter: That is akin to saying I have a total monthly income of 3000 dollars and all my bills mount up to 2900 dollars therefore I have a budget surplus. but I don’t count gasoline for my car which is 200 dollars per month.
That would be a cash deficit of $100. That’s not the case here. The government funded all current expenditures, including Social Security and Medicare, and had money left over.
Now, try to answer the question: Which is better? Having low debt and facing a shortfall in Social Security? Or having high debt and facing a shortfall in Social Security?
Claiming that Social Security future “unfunded obligations” amount to trillions in future debt is a “talking point”. It’s like saying our DOD (which runs a $1 TRILLION a year deficit!!) is responsible for hundreds of TRILLIONS in future debt!!
We get it. The Cult of Conservatology hates government spending, especially government spending on citizens, including government spending using tax contributions from the people who receive the payments! And who pays the Social Security taxes? Workers and employers (actually workers).
In 2021 the federal government collected just over $4 TRILLION in tax revenues. In 2021 the federal government spent $6.8 TRILLION. 6.8 – 4 = 2.8. So we added about $2.8 trillion to the federal debt! We shouldn’t expect to add that much to the debt yearly.
Our total debt is about $30 TRILLION. Our GDP is about $25 TRILLION a year, and typically increases every year.
Claiming that Social Security future “unfunded obligations” amount to trillions in future debt is a “talking point”. It’s like saying our DOD (which runs a $1 TRILLION a year deficit!!) is responsible for hundreds of TRILLIONS in future debt!!
This is a bogus argument that has NO MERIT! Disinformation and FAKE NEWS.
We do not OWE future generations more fighter jets or aircraft carriers. We can easily dismantle the US military and not owe a penny. No one takes money out of our paychecks to pay for the military directly.
However, Social Security is a promise made by the government in which dedicated funds are withdrawn from every worker’s paycheck to guarantee that we will have a retirement income at some point in the future.
DOWD AKA ZACARIEL will jump through hoops whenever they are shown to be wrong to try and be right.
ELWOOD/ZACRIEL posted an angry rebuttal that had nothing to do with EST’s post whatsoever: We get it. The Cult of Conservatology hates government spending, especially government spending on citizens, including government spending using tax contributions from the people who receive the payments! And who pays the Social Security taxes? Workers and employers (actually workers).
Please show ME where EST said anything about hating government spending, and especially spending on Citizens. It seemed he was responding to the lamebrain Zachriel that takes your post line by line and posts talking points.
Now that the left is in charge you are simply trying to make light of the DEFICIT….UNTIL THE GOP GETS IN OFFICE then it will be a monumental crisis once again.
If you notice I bash both sides. I hate the political left. I hate the political right. I cherish sanity. When either side chooses to show they are sane I might vote for them. Until then I will just point out that the LEFT has lost their fuking minds and the right is nodding in agreement to most of their lunacy when IT COMES TO almost everything.
A classic example of the liars that are the right. This will blow your mind. YOU WILL LOVE IT ELWOOD P ZACHRIEL.
https://www.youtube.com/watch?v=7J8Q3Tdic80
My God, Facts Matter. That video shows just how full of shit both sides are. FJB is neither a “good” man nor is he respectable by anyone who has an understanding of that word. And Lindsay is a neocon fool for even saying something that stupid.
FJB
dOwd: “Claiming that Social Security future “unfunded obligations” amount to trillions in future debt is a “talking point”.”
It’s no talking point you economically illiterate fool. It’s a distressing and dangerous fiscal fact and one that if ignored will/can collapse our national retirement plan. To dismiss it with the wave of your hand shows just how out of touch you and your communist associates are with real world economics. And this crime is in no way equal to your analogy with the DOD because we can cut the DOD budget any time we want but SS keeps growing and is an obligation. That’s why it’s called an “entitlement”.
According to Reuters: “By law, Social Security cannot contribute to the federal deficit, because it is required to pay benefits only from its trust funds. Those, in turn, are funded through a dedicated payroll tax of 12.4 percent of income, split evenly between employees and employers, levied on income (this year) up to $128,400.
The program’s revenue and expenses are accounted for through two federal trust funds that have operated with large and growing surpluses in recent years, and they finished fiscal 2018 with an estimated $2.89 trillion. By law, Social Security must invest these surplus funds only in special-issue U.S. Treasury notes, which have the same full faith and credit guarantee as any other federal bond.” Yet everyone knows this to be a lie.
“Social Security’s annual Trustees Report came out recently, and it showed Social Security ran a gigantic $9 trillion deficit between last year and this year. The system’s long-term unfunded liability is now $43 trillion, up from $34 trillion last year.
Funny, nobody noticed.
Did I miss a tweet from the president? I don’t think so. What about the press? Did anyone see an article about Social Security’s deficit exceeding the federal deficit by a factor of 11? Nope.
The press covers on-the-books “official” federal debt, but it ignores off-the-books unofficial federal debt. The fact that one set of debts is on the books because of Congress’ choice of words and another isn’t, again, because of Congress’ choice of words, matters not. When it comes to economics, the press too often simply believes what it’s told.”
Read it all: https://thehill.com/opinion/finance/443465-social-security-just-ran-a-9-trillion-deficit-and-nobody-noticed
SS has always been a Ponzi scheme it was designed like that by the Democrat/socialists that created it. It is not “pay as you go” and has never been since it has always relied on other people paying the retirement of those collecting. It’s a criminal enterprise like most Democrat schemes and is successful at making people think they “earned” it because they paid into it.
dOwd: “Our total debt is about $30 TRILLION. Our GDP is about $25 TRILLION a year, and typically increases every year.”
That entire statement is typical dOwd bullshit. There is no definitive way to determine the actual “debt” of the USA because there is no way to determine all the different aspects of waste, fraud, abuse and actual programs. Just because the Feds printed you out a bogus number somewhere doesn’t make it true. You leftists will believe anything any non-Republican admin prints out. You don’t even realize the same agencies and institutions print out the same bullshit for both parties without preference. They’re all in on the grift just like they were all in on the election fraud, the Covid hoax, and now the big crusade in Ukraine where we are on the side of all that’s right and Putin is Hitler reincarnate (just like Trump was) when the Ukraine is neither an ally nor a democracy, in fact yesterday their great and noble leader Zelensky declared all political parties other than his own illegal! How’s that for democratic?
You really are a flim-flam artist. Your trolling has become trite though.
FJB, FJB LOL
Facts Matter: However, Social Security is a promise made by the government in which dedicated funds are withdrawn from every worker’s paycheck to guarantee that we will have a retirement income at some point in the future.
Current Social Security taxes pay current beneficiaries. It’s an inter-generational income transfer program (with a small trust fund to smooth out demographic changes). What the average middle-aged worker pays now accounts for Granny’s check, not the worker’s own. The worker’s benefit will depend on the contributions of following generation.
L.G.Brandon!, L.G.Brandon!: It’s a distressing and dangerous fiscal fact and one that if ignored will/can collapse our national retirement plan.
When expenditures exceed revenues and the trust fund is exhausted, then Social Security benefits will be cut to meet current revenues, or cut about 25%. Of course, due to the future cost of money, the sooner America addresses the problem, the less expensive the solution will be.
L.G.Brandon!, L.G.Brandon!: The system’s long-term unfunded liability is now $43 trillion, up from $34 trillion last year.
Those are future liabilities, assuming benefits aren’t cut. They aren’t due yet. If the U.S. wants to maintain benefit levels in the future, they can raise taxes now (less expensive), or they can raise taxes later (more expensive). This returns to our point that Americans want the benefits, but don’t want to pay for them. But to argue the U.S. doesn’t have the resources is simply incorrect.
The usual timeline for calculating the Social Security shortfall is 75 years, wherein the shortfall is about $14 trillion. Over the next 75 years, the U.S. will produce about $14,000 trillion in current dollars (given 2% growth).
Sorry. Had a copy error. The U.S. will produce about $3,000 trillion in current dollars over 75 years (given 2% growth). $14 trillion is about 0.5% of total GDP over the period.
All I can gather from this discussion is Dowd and Zachriel are defending deficits because they are in power and want to spend trillions on their bucket list.
Then as soon as the GOP gets in office Deficits will be in crisis mode and the GOP are evil incarnate.
It is a passionate, desperate attempt to defend the Crime Lord Biden from the disastrous economy he has created in passing the infrastructure bill which was needed. Of course, it was not needed on the heels of spending 5 trillion to shut down the world and make people stay home.
This is all on the left. Let no one tell you otherwise. Biden and the progressives have no clue how to run a government other then to shout longer, harder and louder than the right calling them the BIG THREE……White Nationalists, Racists and Homophobes.
Down on the Corner: Zachriel are defending deficits because they are in power and want to spend trillions on their bucket list.
Huh? We’ve consistently pointed out that the problem with structural deficits. Pay now or pay later, but paying now is cheaper in the long run. We noted the U.S. had structural cash surpluses as recently as 2000, so it can be done; but Americans chose a different path.
So, which is better? Having low debt and facing a shortfall in Social Security? Or having high debt and facing a shortfall in Social Security?
Brand0/Corner/Facts… (all the same person, with the moniker Brand0 used as the ‘dumb’ guy)
So the total national debt is a made-up number and there’s a super secret amount that you know? Good heavens, what is the true debt?
We must apologize for leaving ‘faked debt’ out of the beliefs in conspiracy tales required to be a Conservatologist. The debt, Covid, Ukraine, trump win!, flying saucers, critical race theory, dark side of the moon, global warming, Deep State, ivermectin etc, etc and so forth.
Ukrainian President Zelenskyy banned political parties linked to Russia? The horror… the horror. You may have missed it but Russia is actually bombing Ukraine. Sounds like an emergency.
And I pointed out you are using misinformation to confuse the reader. There was no surplus. There was only book cooking which included Medicare and SSI payments to balance the budget…..
WHILE NOT LISTING THOSE PAYMENTS as part of the budget.
IF they leave those payments out, then there was no surplus. Only cooked books to make Clinton and the GOp look good in 1990’s for a couple years.
Simple. Semantics. You are using fake news and disinformation to cover up deficits even when the government was really trying to cut our deficits.
Americans don’t mind paying for medicare and SSI, it is the politicians who are gutless to admit they have squandered our future for the present.
There is no such thing as setting money aside. They need it? They print bonds and the fed Buys them and throws them on a shelf and then prints money to pay for them.
Americans want benefits. All Americans. This is a talking point that the left continually throws at those that don’t want YOUR version of benefits.
There is no setting money aside when you have massive budget deficit. Period. It is absorbed by the debt which is impossible to pay.
Inflation Is Joe Biden and Donald Trump spending 7 trillion dollars….PRINTING 7 TRILLION DOLLARS to bail out big business while the little guy crashed and burned.
Your last sentence is a non sequitur because it is not an either/or. It is both. High debt or low debt results in the same outcome. DEFICITS.
Here is a good one for you.
The FED prints Bonds and then buys them. When they buy them with printed money, these bonds go in Al Gore’s lock box for 10 years. At the end of 10 years the bonds mature and the government has to pay them.
However, if the bonds do not belong to anyone. They just turn to dust and this amount of money is removed from the FEDS balance sheet. Because they only owe themselves. This is why the FED has been buying bonds since 2008.
They realized it was the neatest trick they could ever pull off on the World and the American people. Just print it, buy it and then flush it down the toilet and in 10 years take it off the books.
So yeah every year now the FED removes SECRETLY from their balance sheet probably a trillion dollars.
NEW YORK, Feb 10 (Reuters) – The U.S. Federal Reserve should stop buying bonds immediately to contain rampant inflation, a top investment manager at BlackRock (BLK.N) said on Thursday, joining a chorus of Wall Street heavy hitters and investors who have been calling for swifter Fed action to contain rising prices.
U.S. consumer prices rose solidly in January, leading to the biggest annual increase in inflation in 40 years and fueling market expectations that the Fed may increase rates more aggressively than anticipated to cool the economy.
Corner,
The Z is a kid. A very obnoxious kid with little real intelligence. He is in a debate club and only throws out the usual debate crap to mine responses, in other words you are doing his home work. If you ignore him, he will go away, he is not worth the time to fool with.
Corner,
davie7134 is a bot programmed to react with ‘canned’ responses to specific commenters. Many winger blogs use similar bots.
If you engage it, you’re fluffing a robot.
Down on the Corner: There was only book cooking which included Medicare and SSI payments to balance the budget…..
The definition of a *cash* surplus is having more revenues than expenditures. In this case, that included Social Security, Medicare, interest, and everything else the government spent money on. Indeed, it was a matter of discussion at the time as to what would happen if the U.S. retired its entire debt, as U.S. bonds were the basis of global trade.
Down on the Corner: High debt or low debt results in the same outcome. DEFICITS.
Now that is very strange position to take. So if you owe $1 or you owe $1 trillion, it makes no difference? Of course, it makes a difference. And, of course, it is better to have low debt than high debt.