Could GOP plans spur the inflation the party pledges to end?

[AsherN]

Biden lied about inflation, he said it was 9% when he took over, when in reality it was only 1.4%

It hit 9% after he had been President for over a year.

https://www.cnn.com/2024/05/14/politics/fact-check-biden-inflation-when-he-became-president/index.html

Then Biden said there was not much he could do about inflation, after which he blamed Putin for the inflation, after which he passed legislation for something he said was out of his control, at least, that is what he sold it as.

But later Biden admitted his inflation bill did nothing to help inflation. In fact, all the spending on Climate stuff only made inflation worse.

Biden admits ‘I wish I hadn’t called’ spending bill Inflation Reduction Act

“I wish I hadn’t called it that because it has less to do with inflation than it has to do with providing alternatives that generate economic growth,” Biden said.

nypost.com

In the wake of COVID, inflation exploded worldwide. It's not a US only thing. And it's coming down everywhere.

 

[Votto]

In the wake of COVID, inflation exploded worldwide. It's not a US only thing. And it's coming down everywhere.

That is part of it.

The other part is the war on fossil fuels worldwide, and the massive spending of late.

But all these things governments around the world refuse to admit because they refuse to be held accountable.

The entire world should have handled Covid like Sweden did, which is to basically ignore it.

 

[OKTexas]

The irony is, Trump’s platform — including tax cuts, tariff increases and a crackdown on immigration — would, in the view of many economists and investors, stoke price pressures. As the Federal Reserve prepares to start monetary easing, the potential shift in an array of policies looms as a risk for sustained interest-rate cuts in 2025.

Could GOP plans spur the inflation the party pledges to end?

If Trump does follow through on proposals he’s laid out, here’s how they may influence prices.

www.ocregister.com

Given the vagueness of the Republican platform I am wondering if anyone has any idea of just what a Trump administration will actually do to combat inflation. Even within that vagueness we find three inflationary proposals. Tariffs, elimination of immigration and mass deportations, and tax cuts. What policy proposals will counter those inflationary drivers?

I am not interested in the whole oil and gas production thing, the drill baby drill bullshit. Under Biden oil production and gas production have exceeded even Trump's best year, prior to the Covid pandemic. That dog ain't going to hunt. Trump could ban the export of crude and natural gas, that would certainly influence prices downwards, but I have seen no proposal of that and considering the influence of the oil and gas industry, not seeing it happening.

Are these the same economist, that xiden claims, are saying he's doing a great job. BTW, lower energy prices reduce costs across the board.

.

 

[OKTexas]

In the wake of COVID, inflation exploded worldwide. It's not a US only thing. And it's coming down everywhere.

You do understand inflation is cumulative, right. Just because it's slowing doesn't mean prices are coming down, they're just going UP at a reduced pace.

.

 

[PredFan]

The irony is, Trump’s platform — including tax cuts, tariff increases and a crackdown on immigration — would, in the view of many economists and investors, stoke price pressures. As the Federal Reserve prepares to start monetary easing, the potential shift in an array of policies looms as a risk for sustained interest-rate cuts in 2025.

Could GOP plans spur the inflation the party pledges to end?

If Trump does follow through on proposals he’s laid out, here’s how they may influence prices.

www.ocregister.com

Given the vagueness of the Republican platform I am wondering if anyone has any idea of just what a Trump administration will actually do to combat inflation. Even within that vagueness we find three inflationary proposals. Tariffs, elimination of immigration and mass deportations, and tax cuts. What policy proposals will counter those inflationary drivers?

I am not interested in the whole oil and gas production thing, the drill baby drill bullshit. Under Biden oil production and gas production have exceeded even Trump's best year, prior to the Covid pandemic. That dog ain't going to hunt. Trump could ban the export of crude and natural gas, that would certainly influence prices downwards, but I have seen no proposal of that and considering the influence of the oil and gas industry, not seeing it happening.

Highly unlikely. It didn't during his first term, and won't in his second.

 

[AsherN]

You do understand inflation is cumulative, right. Just because it's slowing doesn't mean prices are coming down, they're just going UP at a reduced pace.

.

Yes. but typically, inflation figures are stated as a function of finite time. Other than for comparisons when people say "things were cheaper when I was a kid", inflation is very rarely stated as more than year over year. Inflation this year being lower than last year means it's slowing down. And it's never zero. much like an unemployment rate of about 4% is considered full employment, an inflation rate around 2-3% is considered essentially non-existent.

 

[Independent thinker]

The irony is, Trump’s platform — including tax cuts, tariff increases and a crackdown on immigration — would, in the view of many economists and investors, stoke price pressures. As the Federal Reserve prepares to start monetary easing, the potential shift in an array of policies looms as a risk for sustained interest-rate cuts in 2025.

Could GOP plans spur the inflation the party pledges to end?

If Trump does follow through on proposals he’s laid out, here’s how they may influence prices.

www.ocregister.com

Given the vagueness of the Republican platform I am wondering if anyone has any idea of just what a Trump administration will actually do to combat inflation. Even within that vagueness we find three inflationary proposals. Tariffs, elimination of immigration and mass deportations, and tax cuts. What policy proposals will counter those inflationary drivers?

I am not interested in the whole oil and gas production thing, the drill baby drill bullshit. Under Biden oil production and gas production have exceeded even Trump's best year, prior to the Covid pandemic. That dog ain't going to hunt. Trump could ban the export of crude and natural gas, that would certainly influence prices downwards, but I have seen no proposal of that and considering the influence of the oil and gas industry, not seeing it happening.

I'm going to go out on a limb but I'm going to argue that a Trump administration isn't going to have 20% inflation in 3 1/2 years.

 

[AsherN]

I'm going to go out on a limb but I'm going to argue that a Trump administration isn't going to have 20% inflation in 3 1/2 years.

I'm going to go out on a limb and say that a Trump admin will not start with a pandemic-depressed worldwide economy and the associated pent up demand and money available.

 

[Toddsterpatriot]

I don't understand why it is not intuitive. Higher taxes subsidize risk. You want companies to take more risk, increase their tax rate. You want them to avoid risk, lower those taxes. Taxes, for business, is the cost of taking money off the table. History bears that out,

• In 2011, capital spending by all U.S. nonfarm businesses totaled $1,243.0 billion. Capital investments increased for the next four years, 14.5 percent in 2012, 4.8 percent in 2013, 7.1 percent in 2014, and 2.8 percent in 2015. In 2016, capital spending decreased 4.1 percent but then increased 6.6 percent in 2017. Companies with no employees were excluded from the 2018 sample, therefore, the change in total capital spending cannot be determined between 2018 and 2019. Capital investment decreased 11.0 percent from 2019 to 2020. At the end of the 10-year period from 2011 to 2020, total capital expenditures totaled $1,706.4 billion, an increase of $463.5 billion, (37.3 percent) from 2011 spending.

2022 Capital Spending Report: U.S. Capital Spending Patterns 2011-2020

Data in this report are from the U.S. Census Bureau's 2011 to 2020 Annual Capital Expenditures Survey (ACES).

www.census.gov

Notice, almost all the growth in capital investment came when corporate tax rates were higher. Only the first year produced any gains and all that can be attributed to the ability to deduct all of some capital investments in the first year that once required amortization over several years. It had nothing to do with the rate.

What the tax cut did do was vastly increase rent-seeking. Your continued inability to understand basic finance, the WACC is inversely related to the marginal tax rates, exhibits a stunningly naive and simplistic understanding of Economics. Let alone human behavior.

Corporations are more concerned about the return of their money than the return on their money. You act as if they evaluate capital investment opportunities without regarding risk.

But enough of the sidebar. Return to the subject at hand. I mean you are the only poster that actually demonstrated a possible counter to the inflationary pressures from tax-cuts, tariffs, and mass deportations. I credited you for that, housing costs could decline. But certainly by very little.

For instance, Dad sold both the family farms to an immigrant owned business, well north of seven figures on both. Not only is Mom set, but me and mine are good to go for a couple generations.

Grandmother lived in a house, built in the early 19th century, alone for decades after Grandfather passed away. The house was part of one of those farms and last I heard, 14 Mexicans are living in it. Deport 14 Mexicans, get one house, and 80 acres coming out of field crop production and going to pasture.

I don't understand why it is not intuitive. Higher taxes punish success.

Notice, almost all the growth in capital investment came when corporate tax rates were higher.

I haven't seen any examples from you where corporate rates were increased followed
by higher investment.



Let's take 2 businesses, funded entirely with debt.

They both borrow $1,000,000 at 10%.

The first has a tax rate of 80%, the second a tax rate of 20%.

WACC for Company 1 is 2%. WACC for Company 1 is 8%.

They plan to buy $1,000,000 of goods and sell them for $1,200,000.

Gross profit for both is $200,000. Net income for both is $100,000.

After-tax income for Company 1 is $20,000. After-tax income for Company 2 is $80,000.

Which one do you prefer?

 

[Independent thinker]

I'm going to go out on a limb and say that a Trump admin will not start with a pandemic-depressed worldwide economy and the associated pent up demand and money available.

You mean due to the democratic reactions to the pandemic in closing down the country? You might be right there.

 

[OKTexas]

Yes. but typically, inflation figures are stated as a function of finite time. Other than for comparisons when people say "things were cheaper when I was a kid", inflation is very rarely stated as more than year over year. Inflation this year being lower than last year means it's slowing down. And it's never zero. much like an unemployment rate of about 4% is considered full employment, an inflation rate around 2-3% is considered essentially non-existent.

And instead of reporting the data that was collected, the prices on various items are weighted as a means of gaslighting the public. Trust in government is at an all time low for a reason, consumers aren't seeing and feeling what the govt is reporting.

.

 

[LAUGHatLEFTISTS]

The irony is, Trump’s platform — including tax cuts, tariff increases and a crackdown on immigration — would, in the view of many economists and investors, stoke price pressures. As the Federal Reserve prepares to start monetary easing, the potential shift in an array of policies looms as a risk for sustained interest-rate cuts in 2025.

Could GOP plans spur the inflation the party pledges to end?

If Trump does follow through on proposals he’s laid out, here’s how they may influence prices.

www.ocregister.com

Given the vagueness of the Republican platform I am wondering if anyone has any idea of just what a Trump administration will actually do to combat inflation. Even within that vagueness we find three inflationary proposals. Tariffs, elimination of immigration and mass deportations, and tax cuts. What policy proposals will counter those inflationary drivers?

I am not interested in the whole oil and gas production thing, the drill baby drill bullshit. Under Biden oil production and gas production have exceeded even Trump's best year, prior to the Covid pandemic. That dog ain't going to hunt. Trump could ban the export of crude and natural gas, that would certainly influence prices downwards, but I have seen no proposal of that and considering the influence of the oil and gas industry, not seeing it happening.

No. Anything else you need?