Look, this whole post is garbage, a vast waft of hot air.
Firstly, it's simply that if you actually had a point you could usefully defend with data, you'd have done so. You haven't because you know you can't really defend the point. There are statistics for wage growth, inflation and real wage growth, and they don't usefully support your points. You talk about budgets and spending, but there's data on government spending too, and none of that defends this idea of inflation-busting mega-spending by the Democrats.
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Secondly, perhaps more problematically, you just don't sound like you know what you are talking about. I can see some words, and you have used numerous words that often appear in conjunction with each other when making economic statements, but none of it really makes any sense.
"Lower taxes and higher spending relying on debt effectively pushes money into the money supply, decreasing its purchasing power."
You don't appear to understand what "money supply" is. It's a specific thing and it isn't important here. However, that's more a nitpick as you are at least partially right in the principle, because if there's more money
chasing the same amount of stuff then inflation will go up. (More money is "demand", in normal understanding of supply of goods and services and demand to buy them). But a major demerit for missing out that whole other side of the supply:demand relationship, as it's incredibly important, and bad to miss out.
"To have lowered taxes and increased real wages means the policy managed economic growth greater than the punishment of its impact on debt and inflation."
Okay, let's try and break down this total clusterfuck of a sentence.
- If real wages go up, then nominal wages have gone up more than inflation, fine.
- If the economy experiences real terms growth, then the economy (in nominal value) grew faster than inflation, fine.
- Real wages aren't the same thing as economic growth. Real wages can go up whilst the economy shrinks! (e.g. this happened during Covid-19.) So you can't link real wages to economic growth as straightforwardly as you have done here to draw the conclusion you do.
- All this talk of real wages and inflation has absolutely no bearing on whether growth was greater than its impact on debt. This is just weird.
- Once a stimulus increases spending power, inflation does not suddenly appear: it gradually emerges with a lag of months-years. Inflation is also affected by a lot of other things. So how are you measuring this to draw all manner of conclusions you do?
- The economy is, in simple terms, everything all entities spend. If someone takes on debt to increase spending, then the economy should increase by an amount equivalent to the extra spending. It's not like you have said different, but it's unclear you understand that.
Every time Democrats get unilateral control, they pass some ridiculous omni-bill that invariably spikes inflation and tanks real wage growth.
The Trump tax cuts were a stimulus.
The government can borrow more to spend more itself, and the national debt goes up. The government can cut taxes and reduce its revenue so the public can spend more with government spending remaining the same, and the national debt goes up. The difference is whether the extra spending will be done privately or publicly, either way the national debt goes up. Your argument here seems to boil down to an absurd claim that private spending doesn't increase inflation but public spending does. Or you can argue that the Democrats spend more
and tax correspondingly more, so without adding debt, which should be, theoretically, roughly inflation neutral. Take your pick, but it's economically illiterate either way.
Secondly, the US federal government represents approximately 20% of the US economy. So when a Democratic government increases spending in a so-called "omni-bill", what difference is this actually making to the US economy? Actually, approximately
fuck all. A 10% real terms increase in total government expenditure from one year to the next (that's a
big increase) when government spending is 20% of the economy means a 2% increase in national economic activity: about the same as standard annual GDP growth. The amount of inflation this will cause is likely to be more in the region of a rounding error. This tells us that you have little comprehension of the numbers involved when you talk about "inflation spikes" caused by government spending increases.
Or you're talking about government emergency packages such as to combat recession - then that's some really big sums. But that's obviously not a fair and reasonable comparison, and certainly not a Democratic thing because the Republicans also also try to stimulus their way out of recessions. Nor is this sort of thing usually a major inflation problem, because it's more about maintaining demand for goods and services relative to pre-recession, by making up for people losing their jobs and so on.