US producer prices jump an unprecedented 8.3%

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   Sharlee01posted 4 years ago

   
   https://www.binghamtonhomepage.com/news … r-earlier/
   
   "WASHINGTON (AP) — Inflation at the wholesale level climbed 8.3% last month from August 2020, the biggest annual gain since the Labor Department started calculating the 12-month number in 2010.
   
   The Labor Department reported Friday that its producer price index — which measures inflationary pressures before they reach consumers — rose 0.7% last month from July after increasing 1% in both June and July.
   
   Inflation has been stirring as the economy recovers from last year’s brief but intense coronavirus recession. Supply chain bottlenecks and a shortage of workers have pushed prices higher. Federal Reserve Chair Jerome Powell has called the price spikes temporary and has warned of the dangers of the central bank raising its benchmark interest rate (now near zero) prematurely, potentially stalling the economy’s comeback.
   
   “Since the pandemic, supply chains have never been the same and likely won’t normalize for at least six months,” said a report by Contingent Macro Advisors. “Only then will we (and, more importantly, the Fed) get a true sense of the trend rate of producer inflation.″
   
   The increased inflation rates the Federal Reserve calls “transitory” so far have shown no signs of slowing, and middle-class and poor families are feeling the squeeze."
   
   Wholesale is now at 8.3%... What will occur with more Federal spending?
   
   My thoughts about what could occur in regard to inflation  If their huge spending bills pass--  The Democrats are pushing a Reconciliation bill that plans that would cost taxpayers spend another $3.5 trillion.  The liberal wish list of social spending in my view will make things worse, and work to further stalling economic growth and leading to even higher rates of inflation than we’ve seen so far.
   
   What makes this proposal even more concerning is Democrats want to pay for it by including the largest tax increases in history.     It would increase taxes on American workers, businesses large and small, farmers, manufacturers, and so much more.  This increased spending combined with job-killing tax increases could lead to dangerous stagflation.  We are looking at low growth and high inflation - that we have not seen since the 1970s.     
   
   Perhaps Instead of pursuing partisan and divisive tax and spending proposals,  both parties should consider and remember the strong economy we had before COVID-19.
   
   The Democrats’ $1.9 trillion stimuli that Congress passed back in March and the Federal Reserve’s unprecedented monetary policy intervention acted as a match to light inflation.  At this point, it would seem the last thing our economy needs now is the unprecedented tax increases and massive new social spending which is represented in the Democrats’ budget resolution leading to next month’s reconciliation bill.
   
   At a time when we should be working to slow inflationary pressures, the Democrats’ $3.5 trillion-plus tax and spending spree would only add fuel to an already blazing fire.
   
   What are your thoughts on where our economy is headed?
    
   Will inflation dissipate as the Democrats are predicting or get far worse if Bidens Tax hikes are put into law? 
   
   And lastly, is this again a plan that could show in my opinion Biden's poor problem-solving skills? It would seem, Biden makes his own problems.

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   Valeantposted 4 years ago

   Your own article clearly lays out the pandemic and supply chains as the cause for this inflation.
   
   You then turn around and try and blame Democrats and falsely claim they want to make historically large tax increases.  Actually, we just want the taxes to go back to a point where businesses actually pay taxes and a point where the wealthy are paying a bit more than the middle class.  Levels still far below where they were prior to Reagan taking over when his tax plans began the wealth inequality in this country.
   
   The country has major infrastructure issues.  Your whole premise of this post is akin to burying your head in the sand and ignoring them.  Biden is looking to solve those issues - in complete contrast to your repeated and stupid claim that he does not have problem solving skills.
   
   His child tax credit plan has reduced child poverty.  His ability to work with cities has reduced the murder rates.  He made the tough call to remove our troops from an endless war in Afghanistan.  And now he is looking to create American blue collar jobs while updating our crumbling infrastructure.  I'd say he's solving way more problems if you'd care to remove your head from the sand.

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      Sharlee01posted 4 years agoin reply to this

      I offered a very non-bias article in order to give to sides of the subject. I would have thought this the fair thing to do. I was attempting to kick off a fair conversation.
      
      Yes, I did give my view, my thoughts on the subject, hoping the thread would elitist conversation on both inflation as well as how inflation may continue if the big-spending, as well as increased taxes, could be very detrimental to American's.
      
      I am in support of the infrastructure bill -- I do not support the Reconciliation bill at this time. I would rather wait a year or so and see if we can afford it... I don't feel Biden solves issues on that we disagree at this point. Not sure what tomorrow will bring.

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