Low unemployment rate causes recessions?

Originally posted by @metal-brain
Thanks for pointing out the impossible. Give a realistic reason for supply catastrophe. Even your space aliens stealing water they could more easily get from the Kuiper belt is unrealistic.

The post Iraq invasion restricted supply, yet not much inflation. Explain that without space aliens.

I'm trying to get you to think.

Originally posted by @wolfgang59
I'm trying to get you to think.

Aliens right? And you want to know what people think of you?

This has already been explained. If there is X amount of wealth in an economy, and it is measured by Y amount of units of currency then any increase in the number of units of currency not aligned with an accompanying increase in wealth will result in inflation. Prices will go up.

Now we don't need aliens to explain other ways that inflation may occur, but it will still be a matter of currency supply. If there is X amount of wealth in an economy and Y amount of currency to measure that wealth and there is a massive loss in wealth (and to have the same effect as goobermint and their bank buddies twiddling the dials we're talking a catastrophic loss in wealth) then Y number of currency is measuring less wealth, in effect making the currency worth less. Now it's your time to think wolfgang, how many dollars does it take to purchase a good if those dollars are worth less than they were last month.

Your contribution has been "no it's not" "what rubbish" and "try to think". Isn't it time for you to formulate some thoughts.

LOLWGURANIDJIT

Originally posted by @lundos
I would like to see regulation that makes it certain that the penalty for criminal behavior outweighs the benefit. As a minimum.

This is encouraging because I'm pretty sure your previous solution was just 'more regulation'.

"Government should regulate banks even more to avoid another 2008"

You were starting to sound like No1 one with the simpleton 'more regulation' bleat. It might conceivably be that less regulation but more precise regulation would be better. Measuring regulation by how high the pile of paper is not helpful. Be specific about which regulations might go, which could be tidied up.

Originally posted by @lundos
You asked for sources. I've provided sources. Obviously, there's no reason to copy all of it. Read the linked articles for the background explanations. It's all there.

You on the other hand have provided absolutely nothing other than claims, conspiracy theory regarding the FED and insults.

I wouldn't call what I feel for fustration. Rather mild amus ...[text shortened]... st another big conspiracy of the 'Elite' or the 'Deep State' or whatever you people call it now.

" Obviously, there's no reason to copy all of it."

Yes there is. If your link doesn't explain anything any better than you did I can understand why you are afraid to post excerpts like confident people do.

That fact that minimum wage has not kept up with inflation proved you wrong long ago. That is why you have digressed away from that original point of this thread. Low unemployment does not cause recessions. That is just an excuse to keep reducing the minimum wage and increasing poverty along with it.

You have failed and you know it.

Originally posted by @wajoma
This is encouraging because I'm pretty sure your previous solution was just 'more regulation'.

"Government should regulate banks even more to avoid another 2008"

You were starting to sound like No1 one with the simpleton 'more regulation' bleat. It might conceivably be that less regulation but more precise regulation would be better. Measur ...[text shortened]... f paper is not helpful. Be specific about which regulations might go, which could be tidied up.

"Government should regulate banks even more to avoid another 2008"

Banks were deregulated when Bill Clinton (corrupt POS) sided with the republicans against his own political party to pass the Gramm–Leach–Bliley Act (Financial Services Modernization Act of 1999) which repealed Glass–Steagall.



https://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act

https://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_legislation

Not more regulation, restoring repealed regulation.

Originally posted by @metal-brain
[b]That fact that minimum wage has not kept up with inflation proved you wrong long ago. [...] Low unemployment does not cause recessions. That is just an excuse to keep reducing the minimum wage and increasing poverty along with it./b]

Wow. The above comment is so laughlably stupid I barely know where to begin.

Once again you show your lack of understading regarding infllation and nominal and real wages. Once again you are so far off the mark, it's a wonder I'm even answering.

Real wages have in fact increased in the US most years and on average over the last 50 years. What you are looking at is only a part of it, which - of course - doesn't tell the entire story and tell us nothing with regards to inflation and unemployment.

https://tradingeconomics.com/united-states/wage-growth

In case you don't understand the above link, which I would assume since you don't understand anything else, the fact that most year have a positive percentage mean that nominal wages increased more then the inflation.

And since I'm sure you are coming back with a link regarding American workers having the same purchasing power as of 40 years ago*, that doesn't change the fact that wages can have an effect on inflation. Even if it's the Management giving themselves wage hikes or salary bonuses. You see cost is cost. It doesn't matter if it goes to the CEO or the stock room worker.

* Here's a link to some numbers and explanations:
http://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/

You have failed and you know it.

Since you have continuously shown a lack of understand of even the most basic concepts it's rather pathetic to make a comment like the that.

Unless you at least try to raise your debating level I'm done here.

Originally posted by @lundos
Wow. The above comment is so laughlably stupid I barely know where to begin.

Once again you show your lack of understading regarding infllation and nominal and real wages. Once again you are so far off the mark, it's a wonder I'm even answering.

Real wages have in fact increased in the US most years and on average over the last 50 years. What you are ...[text shortened]... a comment like the that.

Unless you at least try to raise your debating level I'm done here.

Your links (especially the second) you provided prove me right and you wrong.

You have hoisted your own petard.

Originally posted by @metal-brain
Your links (especially the second) you provided prove me right and you wrong.

You have hoisted your own petard.

No, the only thing proved here is that you don't understand what inflation is, how wages work in relation to it and why you have to look a the entire economy.

Originally posted by @lundos
No, the only thing proved here is that you don't understand what inflation is, how wages work in relation to it and why you have to look a the entire economy.

The opposite is true. You posted a link that says the buying power of wages has declined. That is what I have been saying all along.

You are an economic ignoramus pretending I didn't prove you wrong, which is exactly what I did. Now you post a link that verifies that and you still pretend I'm wrong.

Dude, you are just embarrassing yourself.

Originally posted by @metal-brain
The opposite is true. You posted a link that says the buying power of wages has declined. That is what I have been saying all along.

You are an economic ignoramus pretending I didn't prove you wrong, which is exactly what I did. Now you post a link that verifies that and you still pretend I'm wrong.

Dude, you are just embarrassing yourself.

No, you tried to use the fact that a part of the economy haven't benefittet from the overall wage/economy growth over the last 40 years as an argument of why the entire economy couldn't be affected by wage increases. That's not only an incorrect way to do analysis, it also a very 'economic ignoramus' way of doing it.

Dude, you are just embarrassing yourself.

Originally posted by @lundos
No, you tried to use the fact that a part of the economy haven't benefittet from the overall wage/economy growth over the last 40 years as an argument of why the entire economy couldn't be affected by wage increases. That's not only an incorrect way to do analysis, it also a very 'economic ignoramus' way of doing it.

Dude, you are just embarrassing yourself.

You are a liar.

All you had to do is give an example of inflation being increased because of wage increases. You failed.

https://www.usinflationcalculator.com/

Use the inflation calculator to make your point if you think it is possible. I will even provide you with inflation data with the link below.

https://www.usinflationcalculator.com/inflation/historical-inflation-rates/

In the last 50 years inflation has outpaced the minimum wage in the USA. Your assertion that wage increases cause inflation when the only increases are nominal and NOT adjusted for inflation is laughable. You have failed and you are resorting to lying.

http://checkyourfact.com/2018/04/06/fact-check-minimum-wage-1968-inflation/

Originally posted by @metal-brain
You are a liar.

All you had to do is give an example of inflation being increased because of wage increases. You failed.

https://www.usinflationcalculator.com/

Use the inflation calculator to make your point if you think it is possible. I will even provide you with inflation data with the link below.

https://www.usinflationcalculator.com/in ...[text shortened]... orting to lying.

http://checkyourfact.com/2018/04/06/fact-check-minimum-wage-1968-inflation/

LMAO. The only one lying in this thread was you when you tired to pull the hyperinflation thing.

I've tried to tell you this several times. Looking at only minimum wage doesn't the tell story. Here's an article that shows that wage hikes will cause price increases in the restaurant business:
www.chicagofed.org/digital_assets/publications/working_papers/2004/wp2004_21.pdf

Do you agree that the cost of labour overall in the US have increased more than inflation over the last 40 years?

Congratulations with adding the inflation rates and calculator. Standing alone we can use them for exactly nothing.

But since I've already added the real wage rates earlier in the thread, we already know that wages overall increased more than inflation in most years and on average over the last 40 years.

When companies pay wages do you think it's nominal or real wages? When companies add a wage hike cost to production do you think it's nominal or inflation adjusted?

Twice, now, you call me a liar. Can you please cite where I'm lying or retract the accusation.

And you haven't proven me wrong in anything. On the other hand you've shown terrible reading skills, analysis skills and economic understanding. And you've insulted everyone in that have argued the case.

You are so pathetic in this thread it's not even fun any more.

Sad.

Originally posted by @lundos
LMAO. The only one lying in this thread was you when you tired to pull the hyperinflation thing.

I've tried to tell you this several times. Looking at only minimum wage doesn't the tell story. Here's an article that shows that wage hikes will cause price increases in the restaurant business:
www.chicagofed.org/digital_assets/publications/working_p ...[text shortened]... ave argued the case.

You are so pathetic in this thread it's not even fun any more.

Sad.

"Do you agree that the cost of labour overall in the US have increased more than inflation over the last 40 years?"

No. You have yet to post anything to support that. Your last link does not even work and the previous link you posted confirmed what I have been saying all along.
I proved that minimum wage has been outpaced by inflation in the last 50 years. What are you going to do now, claim restaurants pay high wages? Laughable!

Inflation and hyperinflation is all inflation. I did not lie about it at all. That is just a false assertion no economist in his right mind would make. You are a liar trying to slander rather than prove any of your false claims because you cannot.

You constantly make assertions and never offer any proof. FAIL!

Originally posted by @metal-brain
"Do you agree that the cost of labour overall in the US have increased more than inflation over the last 40 years?"

No. You have yet to post anything to support that. Your last link does not even work and the previous link you posted confirmed what I have been saying all along.
I proved that minimum wage has been outpaced by inflation in the last 50 ...[text shortened]... se claims because you cannot.

You constantly make assertions and never offer any proof. FAIL!

Oh, but I have. Look again here:

https://tradingeconomics.com/united-states/wage-growth

It's pretty easy to see. Every year with a positive number equals wage growth > inflation.

No, actually. I provided the link regarding workers wages. You haven't provided anything to back up all your claims. And once more you need to understand that minimum wage is NOT the entire economy. In fact workers earning exactly minimum wage (or below) is less then 3% of the US hourly paid workforce. Or rather a very small amount.
https://www.bls.gov/opub/reports/minimum-wage/2017/home.htm

You asked for a case where higher wages resulted in higher prices. I provided one.
You can find the restaurant case under reference 118 here: https://en.wikipedia.org/wiki/Minimum_wage_in_the_United_States
If you need another more general one try this:
http://ftp.iza.org/dp1072.pdf

Regarding hyperinflation you tried moving the goal post to hyperinflation, but since I didn't mention it, it was you lying about my claims.

And I've proved you wrong again and again.

The only one providing proof and backing up claims is me. Now retract you claims of me lying.

This is becoming so pathetic I assume you are trolling. Nobody is this moronic.

Originally posted by @lundos
Oh, but I have. Look again here:

https://tradingeconomics.com/united-states/wage-growth

It's pretty easy to see. Every year with a positive number equals wage growth > inflation.

No, actually. I provided the link regarding workers wages. You haven't provided anything to back up all your claims. And once more you need to understand that minimum wage ...[text shortened]... of me lying.

This is becoming so pathetic I assume you are trolling. Nobody is this moronic.

"you need to understand that minimum wage is NOT the entire economy."

So you post 3 links about minimum wage? If it isn't all about minimum wage why do you keep posting links about just that?

You brought up inflation in the 70's and I called it what it was, hyperinflation. Accurately calling inflation "hyper" when it was is not moving the goal post. You are mindlessly making false assertions.

You still have not shown a single example of higher wages causing inflation. Lying and posting links that do not prove what you are saying is pathetic. Try evidence. It is never too late to start.