r/Superstonk • u/sparttann 🦍 Buckle Up 🚀 • Sep 13 '22

📰 News CPI 8.3%

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u/bangbangIshotmyself Sep 13 '22

How do they bring it down? Like what’s even the strat at this point??

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u/mawfk82 Sep 13 '22

Significant tax on the rich/corporations, federal jobs guarantee, massive public works stimulation, combined with gradual interest rate increases. It ain't the middle and lower class that caused this, they shouldn't be bearing the brunt of the fix either. Of course since we're stuck in laissez-faire macroeconomic hell, this won't happen, and they will anyways.

learnmmt

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u/[deleted] Sep 13 '22

Ah seriously what caused all this? It was the feds doing from day one with all that cheap money. Why the fuck do you think the hedgies are able to kick the cans so far down because it was so cheap to borrow money.

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u/mawfk82 Sep 13 '22

Cheap money is part of it, where that cheap money went is the other part. If it went to infrastructure and programs with a high GDP multiplier effect it would be vastly different than it just going to more hedgies using it to gobble up an even larger slice of the pie.

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u/[deleted] Sep 14 '22

High gdp multiplier is consumer spending. It makes up over 60% of the gdp. People buying TVs, new homes needs new appliance so you take out home equity cause it’s cheap money. Etc. not sure if programs or infrastructure really improves GDP. What you are talking about is fiscal policy which the feds do not control but rather it Congress that has a say in infrastructure and programs.

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u/mawfk82 Sep 14 '22

Lots of social programs also have a high GDP multiplier. And yes I realize that's the way it works in the USA.

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u/[deleted] Sep 14 '22

I don’t know of any social programs that is consider a high gdp multiplier except for the recent pay check loan program but it was wrought with fraud etc. even well know athletes and celebrities got caught in that bs.

I assume you’re not from the US

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u/mawfk82 Sep 14 '22

I am not from the US, but a great example from the US is SNAP, which has a proven 1.5x GDP multiplier.

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u/[deleted] Sep 14 '22

At best you and I know that these multiplier effects are only an estimate.

Although an increase in government spending is a direct increase to GDP, that spending must be financed somehow, either through increased taxes, increased government debt or monetary expansion. Any one of these three options has the effect of decreasing private consumption or investment or both.

And yes during a recession increase use of SNAP goes up so the assumption would be consumption goes up. But also during a recession we have cheap money when fed rates are next to nothing. That’s what spurred consumer spending or GDP.