"No Tax on Tips" Vote Trump

[CJD]

(06-18-2024, 03:03 PM)Luvnit2 Wrote: Simple, Trump's last year in office inflation was less than 2%. Biden's first year in office it spiked to almost 8% due to his energy policies. Then in 2022, it was even worse. All of the inflation caused by Bidenomics created higher interest rates as Feds were forced to hike interest rates to curb Biden's inflation.

Look at one key energy fact. Bidenomics green emery policies caused the price of gasoline to raise 50%. As Carville says, it's the economy stupid and Bidenomics specific poor policy decisions were the cause, not a pandemic.

I hear liberals tout the job numbers but fail to mention Biden was going against a Pandemic of job losses. Fast forward to 2024, the jobs report shows an increase of part time and immigrant workers. In fact, more immigrant job creation than US citizen job creation under Biden. Biden is also under water with wage growth versus inflation. Simply, people make more money, but pay more taxes on net income and their dollar also does not go as far. An average family of 4 spends $11,000 more per year under Biden due to inflation and high interest rates.

Considering inflation rates similar to (or worse than) America occurred worldwide, I question how much Biden's policies had an effect on this, especially considering the largest inflation rate increase from the previous year was 2021 (3.46% increase from 2020). In order for Biden to be responsible for that, his policies would have had to have been enacted incredibly quickly, especially since policies tend to create a lagged response in terms of their reflection in the economy.

For example, research has shown that federal fund rate changes typically start affecting the most responsive prices about 18 months after enactment. If Biden's policies that you vaguely alluded to were 3 times as fast to affect the market, 2021's inflation rate would likely still not have been noticeably affected.

Given the global inflation rates in that time frame and the timing of the inflation rate increases, I find the odds that Biden's policies caused the inflation to be doubtful.

But if you have resources, I'd be open to reading them.

In that linked article, the conclusions were presented as such:

Quote:Applying the typical impact timing of the most responsive group of goods and services to the most recent tightening cycle, shown by the federal funds rate line in Figure 4, leads to several conclusions. First, rate cuts from 2019 to early 2020 could have contributed upward price pressures starting in mid- to late 2020 and thus could explain some of the rise in inflation over this period. Second, the tightening cycle that began in March 2022 likely started putting downward pressure on prices in mid-2023 and will continue to do so in the near term. This is consistent with the view that the full effects of monetary policy tightening have yet to be felt. Finally, though inflation for the most responsive categories has been falling since mid-2022, the early part of this decline was likely to have been driven more by changes in prevailing economic conditions than by policy tightening, given estimated policy lags.

Now, I am not one to blame Trump's rate cuts in 2019 and early 2020 for the inflation rises in the 2020 to early 2022 time frame, but this researcher thinks it's possible that the inflation rates you're blaming on Biden might actually be Trump's fault.

Wouldn't that be funny if it were the case?