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U.S. Politics: Goodbye, Majority Leader Cantor


TerraPrime

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Loving the inflation fight I started, awesome.

Just because Scot has paid down debt is not a reason to not target higher inflation. we've been targeting two percent inflation and missing on the underside for decades, if we target four percent inflation we'll miss consistently on the underside for decades, but we might actually hit two percent inflation, maybe some tenths of point above 2, or we might stay below two. If we're lucky we might hit 3% inflation--which would be a massive boost to the economy and that'd be good for everything--but we probably wouldn't manage to be so lucky as to get as good of an outcome as 3% inflation.

And sure, 4% inflation might disproptionately hurt the elderly, but they're protected since most of their safety net support is indexed to inflation, and honestly, they can take it, the current elderly all bought houses for $6000 back in the day that are now worth $600,000. And their houses have increased that much because they got lucky enough to experience the glories of high inflation in the 1970s and 1980s. Inflation that also wiped out all their debt.

So those prior generations already got to reap the rewards, and I'm not asking for the magical awesomeness of a dozen years of double digit inflation (even if that would be fucking amazing and would wipe our all our law school loans super fast), I'm just saying that the generations that already got the awesome bonus of 1000s of percent real estate gains and all their debt wiped out shouldn't be so selfish and horrified at the thought of going from less than 2% inflation to less than 4% inflation.

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locksnow,



Is it that simple to increase and hold inflation to a 4% rather than a 2% rate? Can such a destablization be so carefully controled?



I lived through the double digit stagflation of the late 70s and remember how difficult it made things for my parents. What happens if the inflation rate gets outside of the feds control? As I recall the Fed had to generate a rather steep recession in the early 80s to bring inflation to heel. That quite a few people were driven into unemployment to get control of the late 70s inflation. That the Feds action, which worked, were incredibly unpopular when they were taken. Would the nation have the intestinal fortitude to suck it up to get control of a new bout of serious inflationary pressures?


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