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Utopia Talk / Politics / Would inflation be so bad?
Habebe
Member
Mon May 11 22:08:06
For the US. I know that inflation can have its negative effects, but depending on your situation it can help. We're in crazy debt, personally and nationally, its easier to pay back debt when money is inflated, so im thinking a calculated intentional inflating of US currency might not be the worst thing to do.
sam adams
Member
Tue May 12 00:20:11
There is an ideal amount of inflation that the US targets. This is going to be more than that however.
Dukhat
Member
Tue May 12 00:28:46
I'd like some inflation too for the sake of the economy but with Republicans in control, they are completely focused on the rich which means protecting asset values.

Also, the US ability to inflate is very weak given that it's the world reserve currency and foreigners always buy up US assets as a safe haven too. So the demand for dollars is always there.

On the other side, almost every non-western economy in the world aims to subsidize exports to the US which means keeping their currency cheap relative to the dollar. Even the OPEC countries want a strong dollar so their crude is worth more.

In other words, inflation is probably not going to happen anytime soon.
Im better then you
2012 UP Football Champ
Tue May 12 01:16:34
Countries with toilet paper shortages aren't good at manipulating currency.
Habebe
Member
Tue May 12 01:20:14
Sam, Yes , usually 2-3%.

But what im proposing would be noticeably larger without being too negative for too long, im hesitant to put any real numbers out but enough that we could pay down a bit of the national debt which is out of hand and lets face it many americans are in debt, this could help them pay it off and get out of debt.
Habebe
Member
Tue May 12 01:36:27
Reluctantly i'd say 15%. Ots not a total shock tp the system, but would lessen the burden and could be tamed relativley quick.
Habebe
Member
Tue May 12 01:36:27
Reluctantly i'd say 15%. Ots not a total shock tp the system, but would lessen the burden and could be tamed relativley quick.
hood
Member
Tue May 12 08:20:58
Yes, let's inflate everything when unemployment is at 20% and production is adversely impacted. Just what we need: reduce spending power even more and cut supply to boot.
Daemon
Member
Tue May 12 08:38:20
Inflation will make me a billionaire like my grandparents in 1923!
Habebe
Member
Tue May 12 11:14:43
Daemon, Technically that was hyper inflation.
jergul
large member
Tue May 12 11:27:00
Habebe
Trump will definitely hype inflation. The best, highest inflation evah!

What inflation actually does is redistribute wealth by taking it away from everyone (or perhaps stocks, shares and property are often inflated - and every now and then, the price of baked beans catches up to stock appreciation rates).
Rugian
Member
Tue May 12 11:40:29
"Trump will definitely hype inflation."

Donald J. Trump
@realDonaldTrump
As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT”. Big numbers!
9:52 AM · May 12, 2020
Dakyron
Member
Tue May 12 12:34:23
15% inflation would be a nightmare. We would be better off just sticking to a balanced budget and paying off the debt a year at a time. That way, your great-great grand children could enjoy a debt free lifestyle, unless you count their debt to society as they rot in prison.
Habebe
Member
Tue May 12 12:47:44
Weve had 12-15% that we got down within 2 years.
Habebe
Member
Tue May 12 13:33:32
But yes, raising taxes and reducing spending should also be done.
yankeessuck123
Member
Tue May 12 14:07:33
" But yes, raising taxes and reducing spending should also be done."

Not in a recession it shouldn't.
Habebe
Member
Tue May 12 14:13:39
Perhaps not immediately, but in a long term plan we have to deal with insane debt as were probably getting a 2nd stimulus package soon, the upside is that were borrowing money at negative interest rates ATM.

Which is all why I wouldn't support inflation immediately either, but in a long term plan I think it should be considered.
Dukhat
Member
Tue May 12 15:10:01
Raising taxes and raising spending is the key. Increasing the velocity of money since our tax code is subsudizing the rich too fucking much right now.

Republicans have now caused 2 recession/depressions by giving the rich too much fucking money that they don't know what to do with and waste gambling and losing.

Raise taxes back to Eisenhower levels (50% effective on the super rich), get rid of favorable treatment for those who mainly get income from inestments, and then use that money to fund universal basic income or an increased Earned Income Tax Credit.

Dukhat
Member
Tue May 12 15:10:09
Raising taxes and raising spending is the key. Increasing the velocity of money since our tax code is subsudizing the rich too fucking much right now.

Republicans have now caused 2 recession/depressions by giving the rich too much fucking money that they don't know what to do with and waste gambling and losing.

Raise taxes back to Eisenhower levels (50% effective on the super rich), get rid of favorable treatment for those who mainly get income from inestments, and then use that money to fund universal basic income or an increased Earned Income Tax Credit.

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