Price Stability Act of 2005

[A18]

http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.498:

This is one of many small bills the Republicans should be passing.

[○∙◄☻¥tπ[╪AV┼cVê└]

Increasing Jobs is more important than decreasing inflation.

[A18]

Inflation isn't good for the economy. It just seems good—until the hangover sets in.

[○∙◄☻¥tπ[╪AV┼cVê└]

Inflation isn't good for the economy. It just seems good—until the hangover sets in.

What?

[J. J.]

While a good policy, it's merely a symbolic bill, like the "humphrey-Hawkins Full Employment Bill."

[A18]

While a good policy, it's merely a symbolic bill, like the "humphrey-Hawkins Full Employment Bill."

They have to follow the rules put in place by Congress.

[J. J.]

While a good policy, it's merely a symbolic bill, like the "humphrey-Hawkins Full Employment Bill."

They have to follow the rules put in place by Congress.

That isn't a law, it's a suggestion.

[David S]

Increasing Jobs is more important than decreasing inflation.

Inflation is a problem too. The dollar has lost 95% of its value since 1913 due to monetary policy. This bill will not pass though because it would require the government to stop deficit spending and start being fiscally responsible, which will never happen.

[○∙◄☻¥tπ[╪AV┼cVê└]

Increasing Jobs is more important than decreasing inflation.

Inflation is a problem too. The dollar has lost 95% of its value since 1913 due to monetary policy. This bill will not pass though because it would require the government to stop deficit spending and start being fiscally responsible, which will never happen.

What does the value of the dollar in 1913 have to do with anything? Economic theory says that there's usually a trade off between controling inflation and creating jobs.

[True Federalist (진정한 연방 주의자)]

Our economy is based on production and consumption, not the hoarding of unused capital.  A small but reasonably predictable level of inflation provides a useful spur to consumption and thus production to meet that demand.  Going back to a metal-based standard would create conditions to encourge people to stop spending and start hoarding.  Incidentally, having read the bill, it seems that the author is advocating is not zero inflation but predicatble inflation, which shows that at least Mr. Saxton isn’t some gold bug with no sense of how modern economies work.

[A18]

'Hoarded' money stays in the bank, where it goes out in loans, which, believe it or not, are then spent. That's production; that's consumption.

No one's advocating going back to a metal-based standard. That's not what this act does.

[True Federalist (진정한 연방 주의자)]

I agree that the act isn’t calling for a metal based standard, but since David S is such an ardent gold bug, I felt the need to point that out explictly.  Your point about loans assumes people will want to take them out.  Not too long ago, Japan had essentially a 0% prime rate and even with free money they couldn’t get people to borrow and spend because they had gotten their economy into a deflationary mess.

[A18]

Deflation isn't price stability.

[opebo]

I agree that the act isn’t calling for a metal based standard, but since David S is such an ardent gold bug, I felt the need to point that out explictly.  Your point about loans assumes people will want to take them out.  Not too long ago, Japan had essentially a 0% prime rate and even with free money they couldn’t get people to borrow and spend because they had gotten their economy into a deflationary mess.

'Pushing on a string' as they say.  Interest rates were also nominally zero but in reality quite high due to deflation during the Depression in the US, which is when all these problems were solved by Keynesianism.  Assuming people have enough sense to apply it correctly.

[A18]

Keynesian economics fixed nothing. The Depression dragged on until World War II.

[opebo]

Keynesian economics fixed nothing. The Depression dragged on until World War II.

World War II occasioned a proper application of Keynesian economics.  What had been done in the 1930's was small potatos compared to what was needed.

Even more to Keyensianism's credit is the prosperity of working americans during the 1945-1973 era.

[Bono]

Keynesian economics fixed nothing. The Depression dragged on until World War II.

World War II occasioned a proper application of Keynesian economics.  What had been done in the 1930's was small potatos compared to what was needed.

Even more to Keyensianism's credit is the prosperity of working americans during the 1945-1973 era.

Stagflation?
Ever watched "All in The Family"?

[David S]

Increasing Jobs is more important than decreasing inflation.

Inflation is a problem too. The dollar has lost 95% of its value since 1913 due to monetary policy. This bill will not pass though because it would require the government to stop deficit spending and start being fiscally responsible, which will never happen.

What does the value of the dollar in 1913 have to do with anything? Economic theory says that there's usually a trade off between controling inflation and creating jobs.

Inflation erodes the value of your savings every year. Currently it is about 3%. So a dollar today is worth only 97 cents next year.

[opebo]

Keynesian economics fixed nothing. The Depression dragged on until World War II.

World War II occasioned a proper application of Keynesian economics.  What had been done in the 1930's was small potatos compared to what was needed.

Even more to Keyensianism's credit is the prosperity of working americans during the 1945-1973 era.

Stagflation?
Ever watched "All in The Family"?

Caused by the Oil Crisis - coincidentally we're going through a tiny one now.  All other things being equal Keynesianism is better for the working class.

[A18]

Which working class? The upper, or the McDonalds employees?