Biden Inflation Explosion

[slipped_disc]

How is that helping the 50% of this state which rents and doesn't have a 401(k)?
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He deserves a lot of the blame for the COVID response and lockdowns which necessitated stimulus, but he doesn't control the Fed which now does little more than backstop what Congress spends and tries to control inflation with interest rates. We have to get our spending under control.

Your headline is about access to employer-sponsored 401(k)s. Not investing. Big difference. Yes, there is a significant portion of people who don't invest. Some out of idiocy. Some out of lack of funds. But neither of these populations constitute a majority. Those people are going to hurt in any economy.

The majority of Americans have benefitted from the recent boom.

 

[2surf]

Morty and Saul, are out one afternoon on a lake when their boat starts sinking.
Saul, the banker, says to Morty, “So listen, Morty, you know I don’t swim so well.”
Morty remembered how to carry another swimmer from his lifeguard class when he was just a kid. He begins tugging Saul toward shore. After twenty minutes, he begins to get tired.
Finally about 50 feet from shore, Morty asks Saul, “So Saul, do you suppose you could float alone?”
Saul replies, “Morty, this is a hell of a time to be asking for money!”

 

[PRCD]

Your headline is about access to employer-sponsored 401(k)s. Not investing. Big difference. Yes, there is a significant portion of people who don't invest. Some out of idiocy. Some out of lack of funds. But neither of these populations constitute a majority. Those people are going to hurt in any economy.

They'll hurt much more under inflation.

The majority of Americans have benefitted from the recent boom.

Link?

 

[slipped_disc]

@PRCD
When Fox and CNN agree, it feels stable

https://www.cnn.com/2023/10/18/economy/fed-survey-consumer-finances-pandemic/index.html

https://www.foxbusiness.com/economy/americans-net-worth-grew-37-after-pandemic-fed-survey

A surge in wealth has boosted most US households since 2020 and helped sustain economic growth

WASHINGTON (AP) — The net worth of the typical U.S. household grew at the fastest pace in more than three decades from 2020 through 2022, while relatively low interest rates at that time made it ea…

fox2now.com

 

[GromsDad]

Since you created this thread, everyone’s home and stock values have risen tremendously…

Have the wages and personal income of average Americans risen tremendously? We all know the answer to that question is a big fat NO.

 

[slipped_disc]

Have the wages and personal income of average Americans risen tremendously? We all know the answer to that question is a big fat NO.

No, that's correct. And that stings. But, by and large, most people are better off. Rates of homeownership are up; net worth is WAY up — especially if you're a homeowner. Point being: it's not 100% great.... but the details show it's pretty damn good out there.

The real question IMO is where will it go from here.

 

[PRCD]

@PRCD
When Fox and CNN agree, it feels stable

https://www.cnn.com/2023/10/18/economy/fed-survey-consumer-finances-pandemic/index.html

https://www.foxbusiness.com/economy/americans-net-worth-grew-37-after-pandemic-fed-survey

A surge in wealth has boosted most US households since 2020 and helped sustain economic growth

WASHINGTON (AP) — The net worth of the typical U.S. household grew at the fastest pace in more than three decades from 2020 through 2022, while relatively low interest rates at that time made it ea…

fox2now.com

How is the median a fair estimator when half do not own stocks or a house? IOW, owning or not owning is binary, so the statistical estimator must be the same.

From your article,

Still, more Americans bought individual stocks after the pandemic — a likely reflection, in some way, of the “meme stock” craze that was fueled partly by stimulus checks. The proportion of families that directly owned stocks — as opposed through mutual funds — jumped from 15% to 21%, a record increase, the survey found.

This is a very "cherry-picked" data point. Some people bought some meme stocks or individual stocks which is basically a form of speculation rather than investment for retirement.

The median value of individual stock holdings was $15,000, the Fed report said. The average value of direct stock ownership was much higher — $404,000 — the survey found, reflecting the holdings of richer families.

Household net worth rose more, on a percentage basis, for Black and Hispanic households than for white ones, though measured in dollar terms the disparities remained wide. The median net worth of Black households jumped 60% but remained comparatively low at $45,000. For Hispanics, the figure surged 47% to nearly $62,000. Among white households, median household net worth rose 31% to $285,000.

This seems to be the Matthew Effect at work since wealth in this country is basically bimodal. The poorest are doing better in absolute terms, but not relatively since their expenses are now much higher due to inflation and their incomes have not kept pace. The rich are better relatively and absolutely since expenses are a much smaller proportion of their incomes and they own much more property in the form of stocks and real estate.

 

[GromsDad]

No, that's correct. And that stings. But, by and large, most people are better off. Rates of homeownership are up; net worth is WAY up — especially if you're a homeowner. Point being: it's not 100% great.... but the details show it's pretty damn good out there.

The real question IMO is where will it go from here.

I think a bunch of you need to get out of whatever bubble you're living in. You want to talk about how well certain segments of the population are doing on paper as an excuse for how bad inflation has been for people who aren't home owners with investment portfolios and who rely of wages to get through the huge inflation we've seen in recent years.

 

[slipped_disc]

How is the median a fair estimator when half do not own stocks or a house? IOW, owning or not owning is binary, so the statistical estimator must be the same.

From your article,

This is a very "cherry-picked" data point. Some people bought some meme stocks or individual stocks which is basically a form of speculation rather than investment for retirement.

This seems to be the Matthew Effect at work since wealth in this country is basically bimodal. The poorest are doing better in absolute terms, but not relatively since their expenses are now much higher due to inflation and their incomes have not kept pace. The rich are better relatively and absolutely since expenses are a much smaller proportion of their incomes and they own much more property in the form of stocks and real estate.

If the last point is that the wealth gap is growing. Fully agree. That has been happening for a long, long time here. And it's a real problem.

Still stand by my point that for most Americans, things are better. And there are better studies out there. Will try to find another time. Do you have any stats that show otherwise?

 

[PRCD]

If the last point is that the wealth gap is growing. Fully agree. That has been happening for a long, long time here. And it's a real problem.

Still stand by my point that for most Americans, things are better. And there are better studies out there. Will try to find another time. Do you have any stats that show otherwise?

High inflation disproportionately hurts low-income households

Household survey results do not support Nobel laureate economist Paul Krugman's recent suggestion that low-income families “have actually been hurt less by inflation than families with higher incomes.”

www.dallasfed.org

 

[slipped_disc]

I think a bunch of you need to get out of whatever bubble you're living in. You want to talk about how well certain segments of the population are doing on paper as an excuse for how bad inflation has been for people who aren't home owners with investment portfolios and who rely of wages to get through the huge inflation we've seen in recent years.

I'm a renter and trying to buy a home.... it's brutal out there. Don't need to hear you tell me about it with your walk-to-the-beach-house that you got for dirt cheap.... and apparently have low property taxes

I'm not sure who you're advocating for here that is suffering so much what percentage of Americans do you think own a home? What percentage of Americans rent and can't afford investments?

Of course, it's not cherry for everyone. But the data shows that for most people it's pretty good.

 

[slipped_disc]

High inflation disproportionately hurts low-income households

Household survey results do not support Nobel laureate economist Paul Krugman's recent suggestion that low-income families “have actually been hurt less by inflation than families with higher incomes.”

www.dallasfed.org

No disagreement on that. But I am trying to get you to acknowledge the other point that for most Americans, things are pretty good right now.

 

[GromsDad]

Still stand by my point that for most Americans, things are better. And there are better studies out there. Will try to find another time. Do you have any stats that show otherwise?

 

[slipped_disc]

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I mean non-emotional stats....

 

[PRCD]

No disagreement on that. But I am trying to get you to acknowledge the other point that for most Americans, things are pretty good right now.

Well, belief is relief.

 

[slipped_disc]

Well, belief is relief.

Yes, belief in stats...

 

[PRCD]

Yes, belief in stats...

In that case, you just have belief.

Thread by @oren_cass: Thread (1/16). How is that our economic statistics suggest workers have been making slow but steady progress in recent decades, while popula…

Thread by @oren_cass: Thread (1/16). How is that our economic statistics suggest workers have been making slow but steady progress in recent while popular perception is that their family finances are coming under increasingly untenable pressure? I've be…

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[slipped_disc]

In that case, you just have belief.

Thread by @oren_cass: Thread (1/16). How is that our economic statistics suggest workers have been making slow but steady progress in recent decades, while popula…

Thread by @oren_cass: Thread (1/16). How is that our economic statistics suggest workers have been making slow but steady progress in recent while popular perception is that their family finances are coming under increasingly untenable pressure? I've be…

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This feels like it's getting off topic. The vast majority of that post is all about the current economy vs the economy decades ago. No one disagrees with that, and, yes, I and everyone else here would love to have that kind of affordability.

Is that the position that you're arguing?

 

[mundus]

This feels like it's getting off topic. The vast majority of that post is all about the current economy vs the economy decades ago. No one disagrees with that, and, yes, I and everyone else here would love to have that kind of affordability.

Is that the position that you're arguing?

What was the tax rate and Union membership at when "America was great"?

 

[PRCD]

This feels like it's getting off topic. The vast majority of that post is all about the current economy vs the economy decades ago. No one disagrees with that, and, yes, I and everyone else here would love to have that kind of affordability.

Is that the position that you're arguing?

Whether the majority of Americans are better off now is measured in absurd ways to gaslight the public. The vast majority of expenses are up now in ways that are not measured in "core CPI" and have been going up for a long time as Oren Cass explains. Try telling the respondents to the Dallas Fed's survey on inflation that they're better off now, ACKSHUALLY.