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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (146766)	11/5/2014 1:01:40 PM
From: RetiredNow	Read Replies (1) \| Respond to of 149317

That doesn't make sense. So inflation on food, healthcare, gasoline, rent/housing, and other core budgetary expenditures for the consumer is a good thing? Especially since we know that incomes for the 99% have been stagnant under Obama and Bush Jr? Exactly how is stagnant income and inflationary policies on the goods consumers need to buy, a good thing? What it does is lower the standards of living for the 99%. What these Keynesian policies have done is create part-time low paying jobs, while high paying full time jobs get whacked. That's the problem with Keynesianism. It does not distinguish between good deflation and bad deflation. Good deflation is when improvements in technology and creative destruction lower the prices of goods, while simultaneously increasing their features. Keynesianism thinks that's a bad thing and must be combatted with money printing and 0% interest rates. Bad deflation is the one we need to worry about, which is when consumers cut back spending, because of declining incomes, which causes businesses to cut back on capital spending and lower salaries and cut workers. That bad kind of deflation is ruinous and is what was seen in the Great Depression. But you know what the cure for that kind of bad deflation is? It's a short term monetary (low rates) and fiscal (deficit spending) stimulus combined with legislation that reforms the root causes, such as TBTF banks, crony executives put in jail, tax reform to close loopholes and bring money back home, and so on. In other words, Congress needs to work on something, instead of doing nothing like we've seen for 6 years. So let's hope the GOP does something now. I don't hold out great hope of that given the acrimony between parties, but I do have hope. The problem with the endless Keynesianism, though, is that it doesn't create and incentive for Congress to do anything. So Keynesianism piles on the heroin high, which there will be consequences for, but nothing structural changes. So the 99% get squeezed out of existence and are replaced with poor people, while the 1% laugh all the way to the bank.