Posted on 03/05/2022 1:38:35 PM PST by Roman_War_Criminal
In the US and around the world, record wage and price increases are becoming the norm.
It’s the beginning of an accelerating wage price spiral, and could continue on for several decades.
Most people alive today never experienced the 1970’s period of runaway inflation. They are quickly coming to terms with their massive loss of their purchasing power. Like a runaway train, once governments lose control, it’s nearly impossible to stop. In an effort to put the genie back in the bottle, they will be forced resort to wage and price controls. As with Nixon’s failed experiment 51 years ago, these efforts are doomed to failure. Here’s 8 reasons why.
1. No one really wants to stop it. Jerome Powell no longer claims that inflation is transitory and his efforts at containment are half-hearted.
(Excerpt) Read more at financialsurvivalnetwork.com ...
Because that’s how you institute communism among the western civilizations.
Atlas is about to Shrug
"You were heard shouting 'FJB' at your son's Little League game. Your food ration is cut 15% for the next six months. Don't let us catch you doing that again."
That about sums it up. Only the galactically stupid would want to do it again.
The real solution to inflation is also a solution to many other problems. It will not be painless to many. 1.) The fed has to stop quantitative easing now. The problem there lies in that the fed prints money to pay government bills. 2.) Massive cuts to government need to occur. That means putting government employees in the unemployment line. No longer do they get away unaffected by government caused problems. It also means that the trillions of dollars of spending that has occurred next to cease. All of it now. 3.) One of the driving causes of inflation is energy costs. If affects nearly everything you buy. It is not just a gas pump issue. We need to drill now and drill everywhere. Allow the free market to decide where it is profitable to drill and not drill. This should not be the governments problem. There is no pain associated with this item. Only leftist that worship at the alter of scientism and global warming will hemorrhage from their diminutive pea brains. 4.) Worker productivity needs to increase. More units of output per labor hour of whatever good or service that is being produced increases at current cost levels. This is purely a private sector solution that will occur naturally. Government cannot force this or aid in this. There are zero people in government that have any knowledge of how the real world works and they are a bunch of lazy asses that should not be looked towards solutions. 5.) A real federal budget needs to be created. None of this omnibus spending bull crap. That budget needs to eliminate funding for regulatory agencies and spend less each year than the previous year for the next ten years. The private sector will experience reduced costs for their production because they no long need to comply regulations and have the expense in doing so. 6.) The border needs to be shutdown. No more student visas, no more green cards, no more legal or illegal immigration. Yes, people can still visit the US for vacation or conduct business meetings, but they cannot live here. Additionally, all illegal aliens need to be deported. They are a net cost to society and drive up costs for many services including education, health care, law enforcement, prisons, and all the handouts the Brandon Administration gives them.
They’ve never worked.
Isn’t that how Venezuela achieved poverty? Please, no.
I bought my first house in 1978, almost the peak year of inflation. I had to take out an adjustable mortgage which was adjusted once a year. It was some amount over the Fed’s Fifth District “Cost of Funds Index.” Fortunately, the rates started coming down soon after I took out the mortgage. We bought two houses after that — one with a 30 year fixed mortgage and one with cash. We are still paying the mortgage on that first place, but if things really turn to crap, we can dump it...unless Vlad incinerates all of us.
I kept the nerve-racking adjustable loan for five years and was very glad to finally be done with it.
Good time to borrow money long term for a fixed rate.
You assume such drastic measures will alter consumer behavior. The biggest mistake Dems always make.
This abject stupidity was tried during the Gerald Ford Administration. (Whip Inflation Now) and was a total cockup. Why is it that we have to relearn so many things that do not work.
They don’t work and never have.
Mao’s goal was to destroy everything and start from scratch with nothing. Remember Klaus’ quote, “You will own nothing and be happy.”
Price controls will assure shortages and rationing. Anyone remember that odd even day gas in the 1970s? Brandon will have use standing in line for everything just like in Stalin’s Russia.
I survived Nixon’s wage and price controls period.
The democrats used to soft-headed but basically well-meaning. They are now a criminal syndicate buying votes from looters. Their intent is to steal as much as possible before the collapse and try to dominate the reconstruction.
All Nixon was interested in was foreign policy. He was a complete round heels on everything else.
“I remember the 1970s and 1980s and trying to buy a house in that environment.”
I actually bought a home in that environment. 1980.
I remember the Gasoline lines of 73-74, 78-79.
We survived.
The big difference today, is Politics and the overpowering
control of the government by a single party.
I don’t want to cooperate with a government that is
trying to destroy me.
When you alienate a significant part of your productive population, the USA has a big problem.
GDP is not government spending and service industries,
it is Joules and mass, eg, Energy and goods.
Better prepare because it will only get worse.
Government run and government controlled everything in that place that used to be America.
YAY. I’ll call up dad and we can push around the massive car we had when the gas rationing happened under Carter. Happy days are here again.
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