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Do conservatives bringing in offshore money worry about inflation?
Posted: Sat Mar 26, 2022 4:24 pm
by Gadianton
My understanding, which could be off as I haven't kept up with the details, is that pandemic fiscal "stimulus" efforts have so far amounted in somewhere between 3.5 and 4 trillion dollars available to chase goods and services. This radical spending surely plays a role in inflation. For the moment, I'll forget that my first stimulus check was signed Donald J. Trump, and pretend that this spending and any resulting inflation was entirely the fault of Democrats.
A few years ago, republicans unleashed a big tax reform. A prized aspect of that reform was to lower corporate taxes to incentivize bringing in money offshore, and put to work here at home. The anticipated benefit from this reform was 4 trillion dollars. As I recall, it may have brought in 1 - 2 trillion over a couple years.
Let's consider that 4 trillion number. Would bringing in 4 trillion offshore to inject into the American economy not cause inflation, for some reason, while 4 trillion in fiscal spending causes hyperinflation?
I'm just thinking about rising house prices and rent, and big corporations buying up residential housing under shell companies. At present, that's still a relatively low number compared to the entire market.
But I think the broader question regards the assumption that unrestricted tax benefits to corporations will necessarily trickle down to help the average person.
Re: Do conservatives bringing in offshore money worry about inflation?
Posted: Sat Mar 26, 2022 5:37 pm
by ajax18
Let's consider that 4 trillion number. Would bringing in 4 trillion offshore to inject into the American economy not cause inflation, for some reason, while 4 trillion in fiscal spending causes hyperinflation?
Yes because the $4 trillion in COVID spending was literally paying people not to work. When you add more money to go after fewer goods and services, that's what inflation is by definition. There's no labor backing up this printed money, hence the money loses value. Couple that with the rise in gas prices and we're looking at the worst economy since Jimmy Carter.
Re: Do conservatives bringing in offshore money worry about inflation?
Posted: Sat Mar 26, 2022 5:42 pm
by Chap
Gadianton wrote: ↑Sat Mar 26, 2022 4:24 pm
But I think the broader question regards the assumption that unrestricted tax benefits to corporations will necessarily trickle down to help the average person.
Err, yes.
I think that it is a long time since the jury went out, deliberated, came back and delivered a verdict on that one. Basically, the verdict is that it you are a poor person waiting for some benefits to trickle down into your thirsty mouth from the showers of gold poured onto the heads of corporations and their shareholders, you are likely to dry up and blow away long before you get anything much.
Rich people's tax lawyers make sure all the benefits go to their clients without a drop being spilled. That's their job, after all.
Re: Do conservatives bringing in offshore money worry about inflation?
Posted: Sat Mar 26, 2022 6:29 pm
by Gadianton
Ajax wrote:When you add more money to go after fewer goods and services, that's what inflation is by definition
no, that's not the
definition of inflation.
paying people not to work
let me see if I have this straight: times were good economically in 2020 and running near full output. What you're telling me is that if there hadn't been a pandemic and liberals got together and decided to "print 4 trillion dollars" -- that this
wouldn't have caused inflation?
Re: Do conservatives bringing in offshore money worry about inflation?
Posted: Sun Mar 27, 2022 3:37 am
by Res Ipsa
Gadianton wrote: ↑Sat Mar 26, 2022 4:24 pm
My understanding, which could be off as I haven't kept up with the details, is that pandemic fiscal "stimulus" efforts have so far amounted in somewhere between 3.5 and 4 trillion dollars available to chase goods and services. This radical spending surely plays a role in inflation. For the moment, I'll forget that my first stimulus check was signed Donald J. Trump, and pretend that this spending and any resulting inflation was entirely the fault of Democrats.
A few years ago, republicans unleashed a big tax reform. A prized aspect of that reform was to lower corporate taxes to incentivize bringing in money offshore, and put to work here at home. The anticipated benefit from this reform was 4 trillion dollars. As I recall, it may have brought in 1 - 2 trillion over a couple years.
Let's consider that 4 trillion number. Would bringing in 4 trillion offshore to inject into the American economy not cause inflation, for some reason, while 4 trillion in fiscal spending causes hyperinflation?
I'm just thinking about rising house prices and rent, and big corporations buying up residential housing under shell companies. At present, that's still a relatively low number compared to the entire market.
But I think the broader question regards the assumption that unrestricted tax benefits to corporations will necessarily trickle down to help the average person.
I wish I’d posted it, but I read a piece recently to the effect that the current inflation was caused by the rich having so much money that they are scrambling for ways to invest it profitable. It said that REITs has started buying single family homes up as investments. As a source of inflation in the housing market, that would provide a pretty straight forward explanation. I’d really like to see a published paper on the subject.
The other example was NFTs — which as an investment might as well be tulip bulbs.
Re: Do conservatives bringing in offshore money worry about inflation?
Posted: Fri Apr 01, 2022 3:56 pm
by K Graham
ajax18 wrote: ↑Sat Mar 26, 2022 5:37 pm
Let's consider that 4 trillion number. Would bringing in 4 trillion offshore to inject into the American economy not cause inflation, for some reason, while 4 trillion in fiscal spending causes hyperinflation?
Yes because the $4 trillion in COVID spending was literally paying people not to work. When you add more money to go after fewer goods and services, that's what inflation is by definition. There's no labor backing up this printed money, hence the money loses value. Couple that with the rise in gas prices and we're looking at the worst economy since Jimmy Carter.
And yet, another ignorant rant full of lies. The $4 trillion was enacted in 2020 under Trump and only about $1 trillion went to stimulus, and none of it was to "pay people not to work."
The fact is Trump shut down the economy which was inevitably going to ruin his chances at reelection so he started sending out checks to effectively buy votes, even insisting his sugnature appear at the bottom.
You weren't bitching about any of this until Biden took over and you figured you could them blame him for Trump's disaster of a Presidency.