[Caymus]

Originally Posted by jebartle

We are reducing the deficit NOW. 1.4 Trillion reduction this year.

Maybe it is because somebody did not get as many massive spending bills passed as he wanted.

[Love2Swim]

Originally Posted by Two Bills

I was born in UK and grew up during and in the aftermath of WW2.
Poor meant poor in those years.
We had nothing, yet we survived.
Poor today is nothing compared to those times.
Successive generations have had it so good, they have lost their power of making do in bad times.
I have no sympathy for Villagers screaming poverty and hardship.
If they are living above their means, have to big a mortgage etc. tough, downsize until your income meets your needs.
Most have never had it so good.

I agree. So sick of the whining.

[Stu from NYC]

Originally Posted by Bay Kid

It is a shame the people in charge don't have any idea how to run a business, or even a household budget.

Other things more important to them. Sad isnt it.

[JMintzer]

Originally Posted by jebartle

We are reducing the deficit NOW. 1.4 Trillion reduction this year.

Only when compared to the HUGE deficit that was run up with all of the Covid spending...

Just wait until the "Inflation Reduction Act" kicks in...

[JMintzer]

Originally Posted by jimjamuser

I'll take a shot at that. Supply inflation is caused by the higher cost of a barrel of oil due to Russia's war with Ukraine. Also, China mismanaged its Covid problem which leaves fewer imports from China which drives up prices, resulting in increased inflation. The answer to the 2nd question is that the FED uses its only tool, the prime interest rate increases, to make large companies and home buyers pay more for loans thus discouraging building more factories and homes. The ripple effect is like applying BRAKES to the general overheated economy. Thus hoping to cool the general economy down. many experts think that the FED began the BRAKING too LATE this time and now may NOT get it exactly right - thus driving the economy into a recession. Historically, the FED has misjudged roughly 80% of the time.

As to "happy pills"........I believe that the Pharmaceutical Industry got EXTRA greedy and OVERHYPED oxycodone. Then China and maybe Mexico wanted to cause chaos and make drug money in the US and ended up supplying Fentanyl, which has succeeded in killing a whole middle age demographic group in the US. Lots of ruined lives!!!!!!!

You completely ignore the Govt's huge infusion of cash over the last two years...

More $$$ = more competition for goods and services...

[Stu from NYC]

Originally Posted by JMintzer

You completely ignore the Govt's huge infusion of cash over the last two years...

More $$$ = more competition for goods and services...

Economics 101 should have been a required course.

[JMintzer]

Originally Posted by Stu from NYC

Economics 101 should have been a required course.

I was a Biology major in college. I took Econ 101 as an elective...

My professor was stunned that I actually CHOSE to take the course.. It was the easiest course I took that semester...

I still remember the first words he uttered at the first lecture of the semester... "There's no such thing as a free lunch..."

"Guns & Butter"!

[CoachKandSportsguy]

Originally Posted by Stu from NYC

Economics 101 should have been a required course.

1950's based rational humans' decision theory has been totally debunked with behavioral economics. No better than home economics. Totally ignores emotional bias decision making by humans who can easily fool themselves

as seen in the last two years with too much money floating around, and how humans make very poor suboptimal decisions, or reflected in bitcoin/tulips.

Finance/portfolio theory a much more practical decision making course.

[justjim]

I grew up in the 40’s, 50’s and into adulthood in 1960. I am the Son of a coal miner and grandson of a coal miner. I remember the day after day funerals in my hometown from the mine explosion that killed 109 men. It was the best of times and the worst of times. Greed then and greed now. USA may not be the best Country in the world but it’s way ahead of whatever is in second place. Fore!

[justjim]

Our government is a government of the people, by the people and for the people. As such, it is not a business which is entirely different. Do you get that?

[Stu from NYC]

Originally Posted by justjim

Our government is a government of the people, by the people and for the people. As such, it is not a business which is entirely different. Do you get that?

I get that, but unfortunately the people that represent us have sold out to special interests. Do you get that?

Do you think our tax monies are spent wisely?

[jimjamuser]

Originally Posted by tuccillo

Why don't you tell the whole story? The deficit for FY 2021 was $2.8T. The deficit for FY 2022 was $1.4T. So, instead of spending $2.8T more than the amount of tax revenue in FY 2021, the government only spent $1.4T more than the amount of tax revenue in FY 2022. Yes, I guess that is a $1.4T reduction in the deficit. The government only collected $4.9T in taxes for FY 2022 and they spent $6.3T. Doesn't sound so great anymore, does it? Numbers are meaningless without context.

It is pretty hard to CONTROL the national debt when population increases are out of CONTROL.
........Also, as ONE simple example of where government costs have increased is the problem caused by all the FIRES out west. 7 out of the last 8 years have had RECORD HEAT. Ask yourself, what CAUSED that? It is a problem that is basically being ignored at this time, but it won't go away - and it cost lives every year and it INCREASES costs to state and Federal governments. Killer hurricane IAN has cost and will cost Floridians and the
Federal government MANY billions of dollars. Also, homeowners insurance will rise and is now the highest in the US. That problem was ignored in the US and has not been worked on for the last 30 years. Europe has worked on that problem. Also, Europe and Australia have more efficient health care which allows their societies to be more work efficient and worry less - that leads to improved GNP which allows those countries to take IN more tax money which lowers their National debt.

These are just a few examples of how America could better CONTROL its national debt. And I have not even mentioned tax brackets and percentages.

[jimjamuser]

Originally Posted by JMintzer

Only when compared to the HUGE deficit that was run up with all of the Covid spending...

Just wait until the "Inflation Reduction Act" kicks in...

Covid was typical in that in the US there was a HUGE time delay before solutions were implemented. In the free world, there were countries that reacted sooner than the US. However, the US reacted significantly better than Russia and China.

[jimjamuser]

Originally Posted by JMintzer

You completely ignore the Govt's huge infusion of cash over the last two years...

More $$$ = more competition for goods and services...

"competition for goods and services" is the capitalist American system that works so much better than Russia and China. Large numbers of companies (competitors) in ANY GIVEN industry force prices DOWN. It is MONOPOLIES and duopolies that screw up the American FREE market and drive prices UP. Are LARGE industrial FARMS as good for America as the small individual farmers? I think NOT. Is the oil and gas industries competitive enough? I think NOT. Are the Kock brothers (now just one) good for America? I think NOT. Note that they were one of the last companies to pull out of Russia. Was that patriotic or an example of monopolistic behavior?

Recessions weaken America and will create a bigger homeless situation than we have today. Many homeowners will lose jobs and their large homes with high mortgages. And the speculators will dive in like greedy vultures! We all have to keep our fingers crossed that the Fed can get us out of this dire economic situation, even though they started too late.

[jimjamuser]

Originally Posted by CoachKandSportsguy

1950's based rational humans' decision theory has been totally debunked with behavioral economics. No better than home economics. Totally ignores emotional bias decision making by humans who can easily fool themselves

as seen in the last two years with too much money floating around, and how humans make very poor suboptimal decisions, or reflected in bitcoin/tulips.

Finance/portfolio theory a much more practical decision making course.

I can basically agree with that. Well stated. Economics 101 was merely a relatively easy course designed as an introduction only.