I'm surprised there's not an inflation thread yet
POSTED BY: 6IXSTRINGJACK
UPDATED: Thursday, June 11, 2026 17:04
VIEWED: 37356
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Quote:
Originally posted by second:
By identifying Republicans, and only firing Republicans, Democrats can reduce inflation to zero!
Here’s why Larry Summers wants 10 million people to lose their job
Last Updated: June 21, 2022 at 6:03 a.m. ET
Former U.S. Treasury Secretary Larry Summers says there needs to be a surge in unemployment to curb inflation, which Federal Reserve policymakers say doesn’t need to happen for price growth to cool off.
According to Bloomberg News, Summers said in a speech on Monday from London there needs to be a lasting period of an unemployment rise to contain inflation — either, a one year spike to 10%, two years of 7.5% unemployment, or five years of 6% unemployment.
Put a different way, Summers is calling for the unemployed rolls to swell to roughly 16 million from just under 6 million in May.
President Joe Biden said he spoke with Summers on Monday, though he said a U.S. recession can be avoided.
The way Summers framed the numbers suggests he’s talking about what’s known as the Sacrifice Ratio, which is the link between unemployment and inflation. According to Jason Furman, the former chair of President Obama’s Council of Economics Advisers, in the 25 years before the pandemic, the Sacrifice Ratio has been six percentage points — meaning one year of a 6 percentage point jump in unemployment, or two years of a 3 percentage point increase in the jobless rate, would be required to knock down inflation by a full percentage point.
In May, the unemployment rate was 3.6%. What Summers is basically saying is he wants the unemployment rate to rise to a level that would knock a full percentage point off inflation. The core PCE price index was 4.9% year-over-year in April.
Current Federal Reserve officials don’t accept that there needs to be such a stark trade-off. The Fed’s forecasts call for the unemployment rate to rise to 4.1% next year in a way that would cool core inflation to 2.3%. Christopher Waller, a Fed governor, said the trade-off was less between inflation and unemployment, than between inflation and job openings.
Jerome Powell, the Fed chair, also said such a stark trade-off wasn’t needed. “Take for example in the labor market, so you have two job vacancies essentially for every person actively seeking a job, and that has led to a real imbalance in wage negotiating. You could get to a place where that ratio was at a more normal level and you would expect to see those wage pressures move back down to level where people are still getting healthy wage increases, real wage increases, but at a level that’s consistent with 2% inflation,” Powell said at the last press conference.
https://web.archive.org/web/20220621111332/https://www.marketwatch.com
/story/heres-why-larry-summers-wants-10-million-people-to-lose-their-job-11655800397
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two
That's funny.
Unemployment was 3.5% in 2019 and inflation was normal.
And why are you taking any talk of an imbalance in wage negotiations in favor of labor as if it were a bad thing? You wanted $15/hr minimum wage and said that it wouldn't factor into inflation.
--------------------------------------------------
Falsus in unum, falsus in omnibus
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Quote:How did such a retard as this get the title of Treasury Secretary?
Originally posted by 6IXSTRINGJACK:Quote:
Originally posted by second:
By identifying Republicans, and only firing Republicans, Democrats can reduce inflation to zero!
Here’s why Larry Summers wants 10 million people to lose their job
Last Updated: June 21, 2022 at 6:03 a.m. ET
Former U.S. Treasury Secretary Larry Summers says there needs to be a surge in unemployment to curb inflation, which Federal Reserve policymakers say doesn’t need to happen for price growth to cool off.
According to Bloomberg News, Summers said in a speech on Monday from London there needs to be a lasting period of an unemployment rise to contain inflation — either, a one year spike to 10%, two years of 7.5% unemployment, or five years of 6% unemployment.
Put a different way, Summers is calling for the unemployed rolls to swell to roughly 16 million from just under 6 million in May.
President Joe Biden said he spoke with Summers on Monday, though he said a U.S. recession can be avoided.
The way Summers framed the numbers suggests he’s talking about what’s known as the Sacrifice Ratio, which is the link between unemployment and inflation. According to Jason Furman, the former chair of President Obama’s Council of Economics Advisers, in the 25 years before the pandemic, the Sacrifice Ratio has been six percentage points — meaning one year of a 6 percentage point jump in unemployment, or two years of a 3 percentage point increase in the jobless rate, would be required to knock down inflation by a full percentage point.
In May, the unemployment rate was 3.6%. What Summers is basically saying is he wants the unemployment rate to rise to a level that would knock a full percentage point off inflation. The core PCE price index was 4.9% year-over-year in April.
Current Federal Reserve officials don’t accept that there needs to be such a stark trade-off. The Fed’s forecasts call for the unemployment rate to rise to 4.1% next year in a way that would cool core inflation to 2.3%. Christopher Waller, a Fed governor, said the trade-off was less between inflation and unemployment, than between inflation and job openings.
Jerome Powell, the Fed chair, also said such a stark trade-off wasn’t needed. “Take for example in the labor market, so you have two job vacancies essentially for every person actively seeking a job, and that has led to a real imbalance in wage negotiating. You could get to a place where that ratio was at a more normal level and you would expect to see those wage pressures move back down to level where people are still getting healthy wage increases, real wage increases, but at a level that’s consistent with 2% inflation,” Powell said at the last press conference.
https://web.archive.org/web/20220621111332/https://www.marketwatch.com
/story/heres-why-larry-summers-wants-10-million-people-to-lose-their-job-11655800397
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two
That's funny.
Unemployment was 3.5% in 2019 and inflation was normal.
And why are you taking any talk of an imbalance in wage negotiations in favor of labor as if it were a bad thing? You wanted $15/hr minimum wage and said that it wouldn't factor into inflation.
--------------------------------------------------
Falsus in unum, falsus in omnibus
Oh, under Slick Willie. Of course.
After proving to be such a disaster, Obamination hired him for Economic Advisory Council to ensure the economy would not recover, or grow until Trump took over.
By only firing Democrats and other Libtards, America could become Great Again.
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Quote:Why fire minimum wage employees when the government can most effectively hurt sellers of over-priced merchandise by encouraging employers to fire over-paid people who make $53,490 or more per year? - https://www.jobted.com/salary
Originally posted by 6IXSTRINGJACK:
That's funny.
Unemployment was 3.5% in 2019 and inflation was normal.
And why are you taking any talk of an imbalance in wage negotiations in favor of labor as if it were a bad thing? You wanted $15/hr minimum wage and said that it wouldn't factor into inflation.
This is how these anti-inflation measures work:
Send a signal to sellers that they have set their prices too high.
The only way to send that signal is to reduce their sales of over-priced merchandise.
The only way to do that is to take money away from buyers. (Or government sets prices. Not gonna happen in America.)
The most direct ways to take money away from buyers is to raise the interest rates they pay and to lower their incomes.
What better way to lower incomes than by firing people, especially people with high earned incomes?
This is how Capitalism was designed to work. The design was done by Capitalists for Capitalists' best advantage. Firing employees is good for Capitalists because it reduces their costs. The choices for Capitalists are raise prices and reduce costs (which means firing employees, especially high priced ones), which is exactly what American Capitalists have done for all my life.
See the nice price increases, year after year? That is perfect for Capitalists:
https://fred.stlouisfed.org/graph/?g=QNta
A fact that Capitalists don't talk about much to their customers: Capitalists raise prices because their customers have too much money.
Another fact that Capitalists don't talk about much to their employees: employees are fired to lower costs.
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two
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Unchecked corporate power is fueling inflation. (Personally, I love the system, but then I'm not in your position of having nothing to sell but my labor.)
by Phillip Longman June 20, 2022
https://washingtonmonthly.com/2022/06/20/its-the-monopoly-stupid/
Inflated heads: Today’s high prices were brought to you by Jimmy Carter, Ted Kennedy, Ralph Nader, Stephen Breyer, Alfred Kahn, Ronald Reagan, Robert Bork, and Larry Summers.
On the evening of October 24, 1978, President Jimmy Carter sat up straight behind the Resolute desk in the Oval Office, interlocked his hands, and began reading from the prepared remarks laid out in front of him. “I want to have a frank talk with you tonight about our most serious domestic problem,” Carter told the camera. “That problem is inflation.”
Since the summer, the cost of living had been increasing at a rate not seen since the Ford administration. Worse, the new burst of inflation was accompanied by stubbornly high unemployment, creating a return of dreaded “stagflation.” According to one of his key advisers, Stuart Eizenstat, Carter worried that if they didn’t come up with something new and substantive to say that night, “we’ll be laughed at.”
The largest single cause of accelerating inflation during Carter’s term was monopolistic control over the flow of oil, but the president saw no palatable options for breaking up the OPEC cartel anytime soon. Nor, thanks to political opposition from both Big Business and Big Labor, could he put in the kind of mandatory wage and price controls Richard Nixon had once ordered up.
Also off the table was giving in to Republican demands for dramatic cuts in government spending and higher interest rates. Carter was not yet desperate enough to sign on to that agenda because it risked a wholesale revolt from Democrats to his left like U.S. Senator Ted Kennedy and would quite likely induce a recession.
So Carter played another card: Blame inflation on government bureaucrats.
Carter told the nation that his administration was “cutting away the regulatory thicket that has grown up around us and giving our competitive free enterprise system a chance to grow up in its place.” As evidence, he pointed to a bill he had just signed that stripped the Civil Aeronautics Board of its power to regulate airline fares and routes. “For the first time in decades, we have actually deregulated a major industry,” Carter bragged. “Of all our weapons against inflation, competition is the most powerful,” he explained. “Without real competition, prices and wages go up, even when demand is going down.”
Carter tapped a high-energy Cornell economist turned policy entrepreneur named Alfred Kahn to oversee the dismantling of the CAB, and was so pleased with the result that he elevated Kahn to the new position of “inflation czar.” Later, Carter would double down on the idea that the most powerful tool for fighting inflation was depriving the government of its ability to regulate prices, signing bills that deregulated railroads and trucks, and passing the Depository Institutions Deregulation and Monetary Control Act, which set in motion deregulation of the financial sector. The overarching theory was that if the government would just get out of the way, market competition would lead to greater efficiency and therefore to lower prices for consumers.
Most Republicans applauded these moves, for obvious reasons, but Carter also got support from important Democrats. Ted Kennedy was a key supporter of the airline deregulation bill Carter signed that day. Influenced heavily by Kahn and by Ralph Nader’s Center for Study of Responsive Law, many had come to believe that federal regulatory agencies like the Interstate Commerce Commission and the CAB had been captured by the industries they were supposed to regulate. Stephen Breyer, the future U.S. Supreme Court justice, successfully teamed up with another Kennedy staffer, Phil Bakes, in helping the senator to become a champion of the new liberal cause of getting better deals for consumers through deregulation. The
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Quote:
Originally posted by second:
LIE #1: Unchecked corporate power is fueling inflation.
LIE #2: (Personally, I love the system,
LIE #3: but then I'm not in your position of having nothing to sell but my labor.)
--------------------------------------------------
Falsus in unum, falsus in omnibus
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Quote:The typical angry poor white trash Republican says everything is a lie except that Democrats are to blame for everything. How is that working out for you, 6ix? Does that belief put money in your bank account? It does not.
Originally posted by 6IXSTRINGJACK:Quote:
Originally posted by second:
LIE #1: Unchecked corporate power is fueling inflation.
LIE #2: (Personally, I love the system,
LIE #3: but then I'm not in your position of having nothing to sell but my labor.)
--------------------------------------------------
Falsus in unum, falsus in omnibus
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two
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Quote:Hey, that graph looks like the Inflation caused by Democrat Congressional Budgetary bloat, called "earmarks"
Originally posted by second:Quote:Why fire minimum wage employees when the government can most effectively hurt sellers of over-priced merchandise by encouraging employers to fire over-paid people who make $53,490 or more per year? - https://www.jobted.com/salary
Originally posted by 6IXSTRINGJACK:
That's funny.
Unemployment was 3.5% in 2019 and inflation was normal.
And why are you taking any talk of an imbalance in wage negotiations in favor of labor as if it were a bad thing? You wanted $15/hr minimum wage and said that it wouldn't factor into inflation.
This is how these anti-inflation measures work:
Send a signal to sellers that they have set their prices too high.
The only way to send that signal is to reduce their sales of over-priced merchandise.
The only way to do that is to take money away from buyers. (Or government sets prices. Not gonna happen in America.)
The most direct ways to take money away from buyers is to raise the interest rates they pay and to lower their incomes.
What better way to lower incomes than by firing people, especially people with high earned incomes?
This is how Capitalism was designed to work. The design was done by Capitalists for Capitalists' best advantage. Firing employees is good for Capitalists because it reduces their costs. The choices for Capitalists are raise prices and reduce costs (which means firing employees, especially high priced ones), which is exactly what American Capitalists have done for all my life.
See the nice price increases, year after year? That is perfect for Capitalists:
https://fred.stlouisfed.org/graph/?g=QNta
A fact that Capitalists don't talk about much to their customers: Capitalists raise prices because their customers have too much money.
Another fact that Capitalists don't talk about much to their employees: employees are fired to lower costs.
By golly, yes it is, because it is called Consumer Price Index, which Libtards demand increase each year.
As their Union bosses require.
Golly, Arthur has inadvertently posted a pertinent graph, even tho he does not comprehend it or its meaning.
Kinda curious how Arthur neglects to mention the dirty secret that Libtards don't want gullible voters to remember.
Capitalists who don't reduce their costs/expenses and/or increase their prices are called:
"Ex businessmen" - or, "Out of Business" aka "Failed Capitalists"
The inflation is caused by Libtard Democrats in Congress.
Sensible, honest Americans just need to work within or around the corrupt Democrats and their games.
No Capilatist can stop this lunacy, apparently even when they get into The Oval Office.
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Quote:
Originally posted by second:Quote:
Originally posted by 6IXSTRINGJACK:Quote:
Originally posted by second:
LIE #1: Unchecked corporate power is fueling inflation.
LIE #2: (Personally, I love the system,
LIE #3: but then I'm not in your position of having nothing to sell but my labor.)
--------------------------------------------------
Falsus in unum, falsus in omnibus
LIE #4: The typical angry poor white trash Republican
Not a Republican. Long post history here proving that.
Quote:
LIE #5: says everything is a lie except that Democrats are to blame for everything.
I absolutely don't say that. Very recent post history shows that I've said that the Democrats are regretting stealing the 2020 election now because Trump would have had to deal with some economic fallout because of the bullshit Democrat lead Covid shutdowns that even JohnsHopkins has come out and said had a negligible effect doing anything to combat Covid.
It's just that EVERYTHING they've done since they've been in power has made that situation worse for everyone. You included. Nobody here believes any of your bullshit fantasies about yourself. You are born loser who will die a loser because you let time pass you by and you are exactly the same loser that you always were.
You have a very long post history here showing that.
Quote:
How is that working out for you, 6ix? Does that belief put money in your bank account? It does not.
I don't need more money. I have plenty.
I'm not greedy.
--------------------------------------------------
Falsus in unum, falsus in omnibus
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Quote:Not a Republican? You have also claimed you are not angry and not poor. 6ix, you are the epitome of angry poor white trash. The Republican Party is your home by nature. STOP imagining that you are an independent mind, because your pretensions makes you look foolish as some fat slob who dresses up in a Malcolm Reynolds costume (including the prop pistol) for the local Comic Book Convention. Go to the Convention as what you are: angry poor white trash who votes Republican and can't get enough Donald Trump.
Originally posted by 6IXSTRINGJACK:
Not a Republican. Long post history here proving that.
I don't need more money. I have plenty.
Falsus in unum, falsus in omnibus
https://www.google.com/search?q=mal+reynolds+pistol
Getting back to inflation . . .
Rental car companies provide a good example of how consolidation amplifies inflation. The falloff in travel following the outbreak of COVID initially hit the industry hard. Rental companies dropped their prices by more than a fifth and began selling off cars. Hertz, which also controls its former competitors Dollar and Thrifty, declared bankruptcy. But the industry was soon able to more than recoup its early losses and go on to post record profits through ongoing price gouging.
That’s because it operates as an effective oligopoly. The Hertz group, which emerged from bankruptcy after attracting $5.9 billion in new hedge fund money, shares the market with only two remaining major players: Avis (which controls Budget and Zipcar) and Enterprise (which controls Alamo and National Car Rental). Because there was so little competition left in the industry, it didn’t have to worry about the worldwide shortage of new cars that occurred during the pandemic. It learned instead that it could pull in record profits just by selling off one-third of its inventory into a red-hot used car market while jacking up the price of renting the remaining cars in its diminished fleet. According to the Bureau of Labor Statistics, the average price of renting a car or truck is now 47 percent higher than it was in 2019 before the pandemic struck.
To keep this sweet deal going, the Big Three rental companies don’t have to engage in illegal price fixing. With so few players, it is easy to coordinate prices and output just by sending signals to one another in public. Hertz’s CFO announced on an earnings call this April, “We don’t view inflation as necessarily a bad thing for us, as this creates more discipline across the industry in terms of pricing and asset allocation, which you can see currently.” Just to make sure investors and other members of the oligopoly got the message, he let it be known that Hertz is committed to keeping its prices high by keeping fewer cars in its fleet than is necessary to meet demand. And what is the company doing with the money it saves with this strategy? It’s redeploying its assets to engage in a $2 billion stock buyback program.
It should come as no surprise that other members of the oligopoly are engaged in the same pricing and allocation “discipline.” Rather than build its fleet size back up to meet surging demand, the Avis Budget Group holding company, for example, bought back 20 percent of its outstanding stock in just four months late last year. According to its CFO, this represents “over $1 billion of value created for shareholders.” In May, Avis reported record first-quarter profits, further swelling its stock price by double digits. Meanwhile, anyone needing to rent a car paid more for it—if they could find one.
https://washingtonmonthly.com/2022/06/20/its-the-monopoly-stupid/
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two
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Quote:
Originally posted by second:Quote:Not a Republican?
Originally posted by 6IXSTRINGJACK:
Not a Republican. Long post history here proving that.
I don't need more money. I have plenty.
Falsus in unum, falsus in omnibus
Yup. Not a Republican.
Quote:
You have also claimed you are not angry and not poor. 6ix, you are the epitome of angry poor white trash.
I own everything I have. I have zero debt. That's all all on me too, because I'm not a trust-fund baby. I spend my free time ACTUALLY helping other people instead of virtue signalling about it. I hit rock bottom with addictions that kill most people and turned it around without any 12 step programs or religion.
I don't resemble angry poor white trash any more than you represent highly intelligent and successful people.
Quote:
The Republican Party is your home by nature.
No. It's not. I hate the Democrats for pushing me to the right.
Quote:
STOP imagining that you are an independent mind, because your pretensions makes you look foolish as some fat slob who dresses up in a Malcolm Reynolds costume (including the prop pistol) for the local Comic Book Convention.
No. They don't. Only to a lunatic like you, Arthur.
Quote:
Go to the Convention as what you are: angry poor white trash who votes Republican and can't get enough Donald Trump.
I don't do cons, nerd.
Quote:
Getting back to inflation . . .
That is what the thread is about. But all you want to seem to talk about is me.
I think you have a bigger crush on me than Nilbog did.
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Falsus in unum, falsus in omnibus
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