Ray Dalio Piece - Roosevelt = Biden

bee

-Roosevelt, 1935: “On the basis of these studies and of other studies conducted by officials of the Treasury, I am able to make a number of suggestions of important changes in our policy of taxation. These are based on the broad principle that if a government is to be prudent its taxes must produce ample revenues without discouraging enterprise; and if it is to be just it must distribute the burden of taxes equitably. I do not believe that our present system of taxation completely meets this test. Our revenue laws have operated in many ways to the unfair advantage of the few, and they have done little to prevent an unjust concentration of wealth and economic power.”

-Biden, April 2021 Speech to Joint Session of Congress: “It’s time for corporate America and the wealthiest 1% of Americans to pay their fair share. Just pay their fair share.”

Biden = Roosevelt (The Analogue)

Old_Joe

Yes, the comparisons being made with Roosevelt are pretty interesting. No wonder the Republicans are afraid to cooperate in the slightest way.

bee

@Old_Joe...be careful what you wish for regardless of your political leanings.

Understanding the concept of Debt Monetization:

In government, to print money in order to repay the national debt. For example, suppose a government is $1 trillion in debt. Theoretically, the government can simply expand the money supply by $1 trillion and reduce the national debt to zero. It is not uncommon for governments monetize their debts, but because it increases the amount of money in circulation, it is considered highly inflationary.

and the good, the bad and the ugly of such policies:
https://economics.td.com/gbl-debt-monetization

Old_Joe

@bee- yes, I understand your point and I also am concerned about the potential for the whole system to become unraveled. Even at this point we have become used to seeing dollars by the TRILLIONS discussed as everyday factors. I don't actually remember a transition from BILLIONS, which not too long ago was regarded as a pretty fair sum of dollars to TRILLIONS. What comes after TRILLION?

I don't think that expanding the money supply is necessarily the best approach to the many injustices of the present economic situation. Seems to me that there's already plenty of dollars out there- it's the distribution of those dollars that needs adjustment.

carew388

+1 Quadrillion comes after trillion;refers to the number of mosquitoes in Alaska and Northern Maine, starting about this time!

Old_Joe

Mark

@carew388 - MN too

hank

carew388 said:

Quadrillion comes after trillion;refers to the number of mosquitoes in Alaska and Northern Maine, starting about this time!

Had to put the daily hiking in the dunes on hold until the bugs clear out - all up an down the lakeshore. Mosquito repellent only seems to attract them and make them more vicious. They gun for the eyes, mouth and nose.

I haven’t read the linked piece. I know Dalio is very concerned about the income inequality in this country. I also know there are right-wing old timers round here who loath FDR - so I’d avoid comparisons. Very different backdrop.

Why is it that under “R”s we can always afford tax cuts, but under Dems we can not afford to help the poorest lift their living standards, or better infrastructure or more school aid?

I’m wondering myself about the $$ for fiber optic. Musk’s Starlink is up and running on an experimental basis. Reviews are good. In a year or two every corner of the globe will have access to high speed broadband - albeit a little more expensive than land based.


Shifting topics - Inflation is coming whether those in high places want to acknowledge it or not.
You can’t keep goosing the markets with Fed stimulus without a price. Everything seems to be in short supply. Car rental companies can’t buy enough new ones and are now buying up the used ones they can find. Lumber up 100%+ in a year, and other building supplies in the hunt. Yet - for most Americans with asserts, cash levels are very high. Too much $$ chasing too few goods is a classic definition of inflation. Geez - “Transitory” my arse.