One way to STOP INFLATION in it's tracks

[dutch508]

Star Member KS Toronado (5,858 posts)
https://www.democraticunderground.com/100216348409

One way to STOP INFLATION in it's tracks

In 1970, Congress had granted the President the power to impose wage and price freezes,..... With inflation
unresolved by August 1971, and an election year looming, Nixon convened a summit of his economic advisers at
Camp David......He then announced temporary wage and price controls, allowed the dollar to float against other
currencies, and ended the convertibility of the dollar into gold.

By identifying himself with a policy whose purpose was inflation's defeat, Nixon made it difficult for Democratic
opponents ... to criticize him. His opponents could offer no alternative policy that was either plausible or believable
since the one they favored was one they had designed but which the president had appropriated for himself.

Nixon's policies dampened inflation through 1972, although their aftereffects contributed to inflation during his
second term and into the Ford administration.

https://en.wikipedia.org/wiki/Richard_Nixon Info listed under Economy heading


Quite a number of DUers, myself included, believe inflation is going to be the big issue Rs will be using against
us in the midterms. If we could implement some type of price controls to offset corporate's greed and record
profits and bring inflation under control, independent voters who decide all elections will be paying attention.

Even if price controls don't work as well as we hoped, we'll still get credit for trying with those voters

I'd promote it as a republican idea that worked out great for Nixon so we're gonna try it again, a lot of people
only have vague memories of the '70s when this took place, so promote it as a great republican idea. If they
can have the big lie, we're entitled to a small fib. Gov. Schwarzenegger (R) even did price controls on gasoline
because of greedy oil companies.

OK, there's going to be a lot of what if's, but's, how come's and therefore's to work out, but I believe people
smarter than myself (Biden Administration) could pull this off.

The Democratic party needs to use everything at our disposal to win big in the midterms, the direction the
reQublicOn party is headed is a clear and present danger to our way of life. IMHO

PS, if you have hearts to give out yet, go find someone with none or very few. My ego doesn't need them.
Forget I said that next Feb.

 

Star Member Sherman A1 (36,916 posts)

1. I remember the wage and price controls of the 1970s

they ended up with price controls coming off, but the controls on wages remained as I recall. The working folks got screwed as usual.

unblock (49,975 posts)

2. Nixon's terrible inflation policies helped create the stagflation during Carter's time in office

Granted, the oil shocks had more to do with it, but wage and price controls basically help in the short term but make the long term problems worse, possibly much worse.

Star Member KentuckyWoman (5,436 posts)

9. Double the tax rate

on all the various ways the top 5% make money and also raise all the various ways corporation can deduct things that benefit workers directly. Long range solution. Short range about all you have is price controls. But it affects the US only and I believe this trend is global.

My humble opinion. This round of inflation is 80% about greed. It is also being used as a tool to try and break the political leaders around the world who will fight for workers. It isn't just the US. It's everywhere. Once they get more power in governments then it is much easier to pick the 99% clean.

BTW - I only give greed 80% of the credit because I do think supply/demand does share part of the picture. Coming out of the pandemic, China, India and other emerging economies are increasing the share of global resources they use and the supply of those items is either lagging or cannot be increased.

Star Member Emile (1,889 posts)

10. Joe Mansion is already using it against President Biden as a reason not to support BBB.

Bad when members of your own party blame a Democratic president and not the Predatory Capitalists that caused it! They did this to Carter too. They'll blow smoke up your ass and say its complicated, then point their finger at democrats, blame high cost of hourly wages, demand, the fed, blah blah anything but point at the Predatory Capitalists that raised their prices to recoup losses during the pandemic.

 

[DLR Pyro]

so is the party of the "living wage" suggesting a wage freeze for all?

[67 Rover]

Star Member KentuckyWoman (5,436 posts)

9. Double the tax rate

on all the various ways the top 5% make money and also raise all the various ways corporation can deduct things that benefit workers directly. Long range solution. Short range about all you have is price controls. But it affects the US only and I believe this trend is global.

My humble opinion. This round of inflation is 80% about greed. It is also being used as a tool to try and break the political leaders around the world who will fight for workers. It isn't just the US. It's everywhere. Once they get more power in governments then it is much easier to pick the 99% clean.

BTW - I only give greed 80% of the credit because I do think supply/demand does share part of the picture. Coming out of the pandemic, China, India and other emerging economies are increasing the share of global resources they use and the supply of those items is either lagging or cannot be increased.

So much ignorance in one post it is hard to believe this is just one person and not a DU group effort?

[SVPete]

Wage and price controls may have been the DUMBEST economic action by Nixon. And as the double-digit inflation of Carter's years proved, wage and price controls didn't work.

When I saw the DU thread title, I thought, "DU-folk wouldn't be stupid enough to propose wage and price controls." I was wrong, at least some DU-folk are that kind of stupid.

[USA4ME]

Wage and price controls may have been the DUMBEST economic action by Nixon. And as the double-digit inflation of Carter's years proved, wage and price controls didn't work.

Exactly! Wage and price controls didn’t work at all. In fact, made things worse.

.

[fatboy]

JohnQFunk (318 posts)

7. No wage controls, but a price freeze including ALL rent transactions

A large chunk of the inflation mess is indeed fossil fuel price gouging.

Freeze all such prices and refer the matter to DOJ. Watch the fossil fuel cartel either back down or squirm.

Another is residential rent.

Yes, the Prez should freeze all rents - and yes, let the special interest defenders of gouging go to court - and yes, use that move to turn the GOP into the "pro-inflation party."

Win-win-win.

In just 11 weeks you stupid DUmmies with your stupid creative writing degrees and $100,000.00 college loan debt are going to have bigger worries than the price of ramen or the cost of your rent controlled NYC studio apartment.

 

[fatboy]

DUmmies to Biden: "we want student loan forgiveness now!"

Biden to DUmmies: "I need your student loan bux to fight a war against Russia!"

[fatboy]

Imagine that Biden were to waive his magic wand and forgive 50% of each borrowers student loan up to $50,000.00.

According to FedLoan Servicing, any forgiven student loan debt may be considered taxable income.

DUmmies who have a big student loan debt and a small income and even smaller desire to be employed and/or pay off this loan will rejoice that half their loan is wiped out only to realize the IRS is demanding their fair share!

[Kc25]

In just 11 weeks you stupid DUmmies with your stupid creative writing degrees and $100,000.00 college loan debt are going to have bigger worries than the price of ramen or the cost of your rent controlled NYC studio apartment.

 

Pardon my ignorance... whats in 11 weeks?

[fatboy]

Due to the pandemic, most Federal Student loans have been in forbearance since March 2020. The date to restart payments has been pushed out several times, last summer Biden said that December (15th?) would be the last push out date but changed it to May 1st 2022. Hard to know what will happen but there has been a lot of effort put into preparing borrowers on how to get back into the swing of things.

Borrowers could make payments all during that time, the money going all to the principle and no added interest. I read somewhere forget where, that only 10% were making payments during the forbearance period. That means about 90% were not making payments. These loans include federal parents plus loans which are basically the same terms as a federal student loan but it's the parents responsibility to pay them back.

We had a $21,000.00 parents plus loan for my daughter, we started making payments in March 2018. The repayment amount was $360/month, we sent in at least $400/month. Once the loan went into forbearance, we doubled our payments since all the money was going to principle. Finally we were sending in quite a bit of money and paid it off fully in Oct of last year. I have a friend that has about $300,000.00 in parents plus loans and didn't make any payments in the last two years, really regrets it now.

So as of now May 1st the loans go back into repayment mode. For our $21K loan, we took advantage of the 8 month grace period after my daughter left school, big mistake, they roll all of the interest from the day the money was dispersed into the principle so even with almost 2 years of no interest and paying back in 3.5 years instead of 10 years we paid about $13,000.00 in interest. Had we made the regular scheduled monthly payments over 10 years the total would have been about $44,000.00 for a $21,000.00 loan.

The federal government has been offering new student loans all this time of the forbearance with only a small percent of borrowers putting money back into the system. Although student loan reform makes for good political rallying points and will remain one, there has to be a large scarcity of cash to hand over to students these days.

[Kc25]

Due to the pandemic, most Federal Student loans have been in forbearance since March 2020. The date to restart payments has been pushed out several times, last summer Biden said that December (15th?) would be the last push out date but changed it to May 1st 2022. Hard to know what will happen but there has been a lot of effort put into preparing borrowers on how to get back into the swing of things.

Borrowers could make payments all during that time, the money going all to the principle and no added interest. I read somewhere forget where, that only 10% were making payments during the forbearance period. That means about 90% were not making payments. These loans include federal parents plus loans which are basically the same terms as a federal student loan but it's the parents responsibility to pay them back.

We had a $21,000.00 parents plus loan for my daughter, we started making payments in March 2018. The repayment amount was $360/month, we sent in at least $400/month. Once the loan went into forbearance, we doubled our payments since all the money was going to principle. Finally we were sending in quite a bit of money and paid it off fully in Oct of last year. I have a friend that has about $300,000.00 in parents plus loans and didn't make any payments in the last two years, really regrets it now.

So as of now May 1st the loans go back into repayment mode. For our $21K loan, we took advantage of the 8 month grace period after my daughter left school, big mistake, they roll all of the interest from the day the money was dispersed into the principle so even with almost 2 years of no interest and paying back in 3.5 years instead of 10 years we paid about $13,000.00 in interest. Had we made the regular scheduled monthly payments over 10 years the total would have been about $44,000.00 for a $21,000.00 loan.

The federal government has been offering new student loans all this time of the forbearance with only a small percent of borrowers putting money back into the system. Although student loan reform makes for good political rallying points and will remain one, there has to be a large scarcity of cash to hand over to students these days.

Thanks!

[DLR Pyro]

This student loan forbearance + moratorium on rent evictions  + the promise of "free" health care + an administration and congress pushing a socialist agenda + numerous stimulus checks  = the great resignation.

Millennials and other young people don't feel any motivation to work when they feel that daddy government will take care of them from cradle to grave 

[Dblhaul]

so is the party of the "living wage" suggesting a wage freeze for all?

Yes, they are the stupid of our country, we can get what we want by doing what we don't want!

[freedumb2003b]

Price Controls created the gasoline crisis. EVERY TIME they have been used shirtages begin almost immediately with a black market to go with it. Who benefits? The EEEEEVIL rich who can directly or indirectly buy their way to the front of the line. Who gets hurt? The poor, who either go without or spend a LOT of time in line or go without. Frequently both.

As usual the poor will pay fir the lefties not knowing basic economics - the difference between supply and demand and qty supplied and qty demanded. Conflate those at your peril.

[jukin]

This student loan forbearance + moratorium on rent evictions  + the promise of "free" health care + an administration and congress pushing a socialist agenda + numerous stimulus checks  = the great resignation.

And inflation from the money printing to provide those. This will end like Venezuela.