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 ...
No enumerated power, 10th Amendment, Democrats are lawless scumbags, baby killers and poofter loving trash.
He may have been a “Republican” but Nixon was in the mold of FDR and never departed one jot from FDR’s high handed lawlessness … he did things because not not doing things would mean he wasn’t doing things.
Politicians seem to hate not doing things, doing things wins votes from drooling “save us!” types.
I’ve managed to save enough money that the martinets trying to lord it over me at work are powerless. I can tell them to kiss off, take this job etc. They do not like being powerless.
This is just one step to regain control. Putting me back at zero means I no longer have a say in my future.
You are assuming that a desperate government won't simply keep raising taxes until they take your property or go full communism and simply that the state owns everything and they reallocate according to their latest five year plan.
“It’s the beginning of an accelerating wage price spiral, and could continue on for several decades.”
That was a good spot to stop reading.
Perfect way to describe the dem party.....
Will they control the wages of government employees or will they raise them?
Stop buying stuff and the prices will go down.
Yours is a good essay, and provokes thought, but formatting is your FRiend:
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.
I remember the price & wage controls. Where I live controls gave employers a free hand on no raises while prices went merrily on their way up. Now I’m on S.S.,prices are higher than ever & you get the 2-bit S.S. raise. Same stinking deal. Well, not quite the same deal....now we have a COMPLETE joke for a president & administration.
I remember the price & wage controls. Where I live controls gave employers a free hand on no raises while prices went merrily on their way up. Now I’m on S.S.,prices are higher than ever & you get the 2-bit S.S. raise. Same stinking deal. Well, not quite the same deal....now we have a COMPLETE joke for a president & administration.
For many industries, they can sell to other markets. Many can also continue to manufacture now to sell at full market price later.
Yes, that is my assumption. I just turned 70; the averages say I’ve got 14 years left. I’m counting on the government sh!t show not going full commie in 14 years. My kids are on their own.
“Good time to borrow money long term for a fixed rate.”
That is exactly what we did about a year ago — refinanced 30 year at 2.5% fixed, nothing down, no costs. We hit the rock bottom rate of 2021 (something we never do).
“5.) A real federal budget needs to be created. None of this omnibus spending bull crap. “
Absolutely. Congress should pass individual spending bills for every department, if not every program in the department. Force them to vote for or against PBS, huge research grants for big Pharma, Amtrak, foreign aid, $200 million dollar bridges to nowhere in Alaska, and Planned Parenthood.
A couple of years ago I looked at a Congressional record from the early 1800’s. The level of detail of Congressional oversight was amazing. Congress at that time was voting yea or yea to installing cannons at a fort. They actually debated the wisdom of the purchase.
Also, end the fiction of the “baseline” budget including an automatic increase of 7 or 8% so Congress can pass a 5% increase and tell the sheep they “cut” spending. The baseline should be the prior year spending.
Nothing continues forever. The day we lose reserve currency status is the day the borrowing money spigot dries up. Congress will have to make massive cuts to the budget, eliminating entire departments and doing waves of the 10-20% across the board headcounts those of us who worked in corporate America during the 1990’s and early 2000’s experienced.
Directive 10 289 comes to mind.
“The day we lose reserve currency status is the day the borrowing money spigot dries up. Congress will have to make massive cuts to the budget, eliminating entire departments”
That won’t even get it done.
My prediction is that when (not if) the petrodollar/reserve currency dies .gov will just issue a brand new currency redeemable for pennies on the dollar (along with Argentina like talk about how existing .gov bonds may pay interest and principal back “someday”).
Everyone’s pay/benefits will be nominally the same—it will just be worth 90% less in real goods..(estimate)
Congratulations. You made a great deal.
Price Controls are a proven failure.
Raising interest rates - though painful - works.
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