The Biden (interim) Dictator

[sonofdaxjones]

500 Special Forces to Somalia.

Joe absolutely loves forever war.   Given his collective political history of continually advocating for war, with scant few quantifiable objections, really only one.   A mealy mouthed half hearted objection to the surge in Afghanistan that his boss ignored straight out. 

Given the nearly five decade body of work, he is arguably the biggest war monger to ever serve as President of these United States, and no, a delayed pull out of Afghanistan that his own party saddled up to the usual NeoCons worked overtime to stop because they didn't want Trump to garner any political points, does not count.

Denying Biden any credit for pulling out of Afghanistan is dumb. Trump deserves credit for it too, but he didn’t actually do it.

Because the NeoCons (on both sides of the aisle) did everything they could to fight it as did the lifers in the Pentagon.

You've fogotten all the #neocon screaming about how Trump was going to help Putin by pulling out of Afghanistan.    They got that wrong, it was the Chinese.

[Justwin]

https://twitter.com/thejcoop/status/1526289490377158657

[sys]

someone on twitter observed that she probably can't respond with the obvious - that it would pull money out of circulation because that would imply that the arp helped cause inflation, which is not something democrats appear willing to admit.

[Justwin]

someone on twitter observed that she probably can't respond with the obvious - that it would pull money out of circulation because that would imply that the arp helped cause inflation, which is not something democrats appear willing to admit.

Increased taxes is a negative real shock that shifts the LRAS curve to the left which leads to higher inflation. Firms will respond to higher taxes by at least somewhat raising prices.

How is the money going to be taken out of circulation? When the government receives the taxes is it going to make the tax revenue just disappear?

Increasing taxes on firms and the ARP are both inflationary.

[Rage Against the McKee]

someone on twitter observed that she probably can't respond with the obvious - that it would pull money out of circulation because that would imply that the arp helped cause inflation, which is not something democrats appear willing to admit.

Increased taxes is a negative real shock that shifts the LRAS curve to the left which leads to higher inflation. Firms will respond to higher taxes by at least somewhat raising prices.

How is the money going to be taken out of circulation? When the government receives the taxes is it going to make the tax revenue just disappear?

Increasing taxes on firms and the ARP are both inflationary.

That makes absolutely no sense. Reducing demand lowers prices. What are your thoughts on the PPP loans that all of these firms were given without any expectation of ever having to pay back? Did that lower prices?

[Justwin]

someone on twitter observed that she probably can't respond with the obvious - that it would pull money out of circulation because that would imply that the arp helped cause inflation, which is not something democrats appear willing to admit.

Increased taxes is a negative real shock that shifts the LRAS curve to the left which leads to higher inflation. Firms will respond to higher taxes by at least somewhat raising prices.

How is the money going to be taken out of circulation? When the government receives the taxes is it going to make the tax revenue just disappear?

Increasing taxes on firms and the ARP are both inflationary.

That makes absolutely no sense. Reducing demand lowers prices. What are your thoughts on the PPP loans that all of these firms were given without any expectation of ever having to pay back? Did that lower prices?

How does increasing corporate taxes reduce demand?

The PPP money was money that was given away that was not affected by current pricing and profit. There's no reason that should lower prices. It was terrible policy.

[Rage Against the McKee]

someone on twitter observed that she probably can't respond with the obvious - that it would pull money out of circulation because that would imply that the arp helped cause inflation, which is not something democrats appear willing to admit.

Increased taxes is a negative real shock that shifts the LRAS curve to the left which leads to higher inflation. Firms will respond to higher taxes by at least somewhat raising prices.

How is the money going to be taken out of circulation? When the government receives the taxes is it going to make the tax revenue just disappear?

Increasing taxes on firms and the ARP are both inflationary.

That makes absolutely no sense. Reducing demand lowers prices. What are your thoughts on the PPP loans that all of these firms were given without any expectation of ever having to pay back? Did that lower prices?

How does increasing corporate taxes reduce demand?

The PPP money was money that was given away that was not affected by current pricing and profit. There's no reason that should lower prices. It was terrible policy.

Increasing corporate taxes removes money from the economy. It's the opposite of printing more money.

[Justwin]

someone on twitter observed that she probably can't respond with the obvious - that it would pull money out of circulation because that would imply that the arp helped cause inflation, which is not something democrats appear willing to admit.

Increased taxes is a negative real shock that shifts the LRAS curve to the left which leads to higher inflation. Firms will respond to higher taxes by at least somewhat raising prices.

How is the money going to be taken out of circulation? When the government receives the taxes is it going to make the tax revenue just disappear?

Increasing taxes on firms and the ARP are both inflationary.

That makes absolutely no sense. Reducing demand lowers prices. What are your thoughts on the PPP loans that all of these firms were given without any expectation of ever having to pay back? Did that lower prices?

How does increasing corporate taxes reduce demand?

The PPP money was money that was given away that was not affected by current pricing and profit. There's no reason that should lower prices. It was terrible policy.

Increasing corporate taxes removes money from the economy. It's the opposite of printing more money.

No, it does not. It rearranges where money is.

[sys]

not if it's not spent.

[Justwin]

not if it's not spent.

We have a deficit. It's going to get spent. That will mean the government will borrow less, yes, but that will leave more money to be spent in the hands of those who now save less due to lower interest rates and will lead to an increase in spending on investment by businesses (probably mostly non-large corporations) due to lower interest rates.

The inflation effect from raising corporate taxes would be a one-year phenomenon.

Do you all think oil prices going up is not inflationary independent of the direct contribution of oil prices to whatever price index you are using? Increasing corporate income taxes raises the cost of doing business. Some of that increased cost will get passed on in the form of higher prices.

[Justwin]

This stuff is all basic ECON 110 (Principles of Macroeconomics) material. Did you all not take this course?

[Justwin]

Moreover, even if we didn't have a deficit, the increased tax revenue would go towards paying down the debt, which we simply rearrange where money is located in the economy.

If we didn't have a national debt, the government would then lend out its surplus. If it didn't lend out its surplus, it would then be acting as the monetary authority and affecting the money supply rather than the velocity of money. If the monetary authority (Federal Reserve) did not like this, it could overwhelm any monetary authority behavior on the part of a central government. If a monetary authority didn't counter this type of behavior, it would cause a decrease in inflation.

However, the decrease in inflation would come at the price of decreasing real GDP growth and increasing unemployment. If you are advocating for the government to decrease inflation in this way, you are advocating for the government to reduce economic growth and increase unemployment.

[chum1]

This stuff is all basic ECON 110 (Principles of Macroeconomics) material. Did you all not take this course?

I did. The professor said that the government doesn't have nearly as much influence over this stuff as people tend to believe it does. What now?

[Justwin]

This stuff is all basic ECON 110 (Principles of Macroeconomics) material. Did you all not take this course?

I did. The professor said that the government doesn't have nearly as much influence over this stuff as people tend to believe it does. What now?

I think a central bank has more influence than the central government. Some of the limits of fiscal policy, though, have been due to the relatively small size of the fiscal policy plans. This was not true of the stimulus responses to the pandemic.

In terms of an increase in corporate income taxes, I would grant you that there most likely would not be much of an effect. However, increasing corporate income taxes would do absolutely nothing to reduce inflation. If there was any effect on inflation, it would be to make inflation worse.

[sys]

We have a deficit. It's going to get spent. That will mean the government will borrow less, yes.

borrowing less reduces the money in the economy.


i'm not arguing that raising the corp tax would necessarily reduce inflation, because it's far more complicated than that (and any effect would be small), but there's no argument to be had over the direct effect of a govt raising taxes and applying the new revenues to deficit reduction.

[Justwin]

We have a deficit. It's going to get spent. That will mean the government will borrow less, yes.

borrowing less reduces the money in the economy.


i'm not arguing that raising the corp tax would necessarily reduce inflation, because it's far more complicated than that (and any effect would be small), but there's no argument to be had over the direct effect of a govt raising taxes and applying the new revenues to deficit reduction.

The government borrowing less does not reduce the money in the economy. I already addressed why this is.

The long and short of it is that increasing corporate income taxes is a negative real shock that shifts the LRAS curve to the left. This will lead to an increase in inflation. The effect should only last for one year. If you choose to not believe this, go for it.

[sys]

The government borrowing less does not reduce the money in the economy.

ok, well you're wrong.

[Justwin]

The government borrowing less does not reduce the money in the economy.

ok, well you're wrong.

I'm not, but that's fine if you want to think that. You would make a very good populist.

[kim carnes]

Democrats (outside of manchin) have no interest in using increased tax revenue for deficit reduction so wgaf

[LickNeckey]

The GOP has an interest in deficit reduction?

[kim carnes]

No.

[Kat Kid]

Sys are you a MMT guy?

[sys]

Sys are you a MMT guy?

no, of course not.

[passranch]

Man, I love a good old fashioned Econ-off!

[Kat Kid]

Sys are you a MMT guy?

no, of course not.

Ok well the taxes/delete money thing is a core MMT tenet.

I agree MMT is bad (Jobs Guarantee is way worse than welfare) and impractical (our monetary policy makers are way more equipped to respond to facts on the ground in a timely manner than congress).