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Culture War Roundup for the week of October 7, 2024

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Aren’t you the poster who spent two years denying inflation was happening?

He is the poster who when it was pointed out to him the job numbers were fake didn’t believe it.

More effort than this, please.

I don't think so. I've argued in the past that Republicans think the economy is far worse than it actually is, that real (i.e. inflation-adjusted) wages are up, etc. but I've never denied inflation was actually happening.

I've argued in the past that Republicans think the economy is far worse than it actually is

This isn't the sort of thing that people are likely to be "wrong" about, because their evaluation of the economy is based on metrics that impact them directly.

Lunch at Five Guys costs me $30 right now, so for me, the economy is bad. There's no argument you can present to me on this forum right now that will make my burger stop costing $30. Job numbers, real wages, exact rate of inflation and etc, are all irrelevant, because my burger still costs $30. So instead of trying to verbally convince me that the economy isn't actually that bad, why don't we instead come up with a plan of action to make my burger not cost $30 anymore? Is there anyone in November running on a platform of making burgers not cost as much? Because I'll vote for that guy.

This line of thought is actually highly atypical. Even in 2022/2023 iirc a majority of Americans rated their own economic circumstances as good/improving, they just thought the country as a whole wasn't.

So instead of trying to verbally convince me that the economy isn't actually that bad, why don't we instead come up with a plan of action to make my burger not cost $30 anymore? Is there anyone in November running on a platform of making burgers not cost as much? Because I'll vote for that guy.

Well, I wasn't planning on getting involved in politics, but if that's what you're concerned about, I have a plan that all but guarantees to get the cost of that hamburger down: First, we'll raise interest rates up to Volcker-era levels. If this managed to get inflation down by double digits, with inflation currently sitting at 2.5%, it should be enough to get double-digit deflation. Next, I'm going to raise taxes on practically everyone. Current middle class brackets are in the 21%–24% bracket, let's get them into the 25%-30% range they were at before the Reagan tax cuts. Next, we'll get rid of all tariffs. There's no reason for Five Guys to be forced to pay extra if they can get cheaper beef from Brazil. Finally, end all immigration restrictions. Farmers, food processing plants, and restaurants shouldn't have to pay anyone $15/hr when there are plenty of people who would work for the minimum wage and be glad to get it. Now, there's a decent chance that you might not have a job after my plan takes effect, rendering the cost of restaurant food a moot point, but that would do it.

This isn't the sort of thing that people are likely to be "wrong" about, because their evaluation of the economy is based on metrics that impact them directly.

That makes sense. Unfortunately, it's demonstrably false. Polls ask both "how are you doing economically?" and "how's the economy doing in general?" (but, erm, worded better by people who know how to ask poll questions). While the former doesn't exactly track the stock market minute-by-minute, the latter is consistently (at least in the past several years) strongly affected by partisanship. I totally believe that people's feelings about their own economic situation is difficult to judge from top-level economic statistics, especially ones biased towards measuring how well the economy is working for rich people, but people's assessment of the economy of a whole is strongly influenced by their political leanings over any observation of the facts.

Also, to be clear, this isn't a "Republicans are lying" claim. Both sides are heavily influenced by partisanship here. Look at the first graph in the first link I gave above: at Biden's inauguration the answer to "is the economy getting better?" flipped from around 50% of Republicans/10% of Democrats to around 10% of Republicans/50% of Democrats. That chart seems more useful for determining who is president than anything else.

I would add that the problem is the government data is controlled by the people who benefit from positive data. It isn’t totally fake but there are fudge factors and it isn’t entirely clear if they are 1) being fudged and 2) if so the size of the fudging.

For example food inflation was in the mid twenties over the Biden admin. Industry group calculated it around 35%. Maybe the industry group is wrong or maybe the government is wrong. But the industry group seemingly fits my experience a bit more.

If such a candidate existed you wouldn't vote for him anyway. At least I don't think so, because I don't think communists are well-received here.

Paul Volcker wasn't a communist, and it doesn't take communism to keep prices stable instead of wildly inflating.

But no, nobody is running on that platform, because it would require cutting off the gravy train. The Dollar Endgame is coming, eventually, and when it arrives it will be in a rush.

You didn't ask for a candidate to "keep prices stable." You asked for a candidate to actively bring the price of products down. That's a much bigger ask, and much closer to the realm of price controls.

You

The guy you just replied to wasn't me.

I'm not a strict market libertarian, I think that if there are reasonable interventions we can make in the economy then we should do that. I agree that direct price controls are a bad idea, but to suggest that there are no actions whatsoever that can be undertaken to reduce inflation doesn't strike me as plausible.

Fair. My fault for not checking. But to but you and @KMC , the original comment did say to actively reduce prices. If this quick source is correct the last time we had deflation was 1954. And generally speaking, deflation means the economy is in a very bad condition.

Ok, so spell this out for me. I swear this isn’t a gotcha. I don’t know anything about economics, I’m here to learn.

Deflation is bad. Ok. So do you think we should literally never have deflation? Can we at least keep prices static? Because if we can’t decrease them, and if we can’t keep them static, then that seems to imply that they would continue to unboundedly increase into the future. We would eventually get to the point where a loaf of bread is a million dollars. That doesn’t seem desirable. What am I missing here?

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No, it's firmly in the realm of deflation.