Are we heading toward the nanny state where we expect 2000.00 cheques and no matter if 600.00 or 2000.00 we will want another cheque
If prices go up will 2000.00 satisfy the people
I am watching comments on various chat forums and find hardly anybody willing to say they will take 600.00 vs 2000.00
And why not if it is free money
How many refused the various programs in past stimulus programs
In Canada we have plenty of stimulus and our family benefited
I doubt this virus will disappear any time soon and so long as there is some pain the money will continue to flow until we want free money no matter what happens
In fact I think the free money and more spending is a greater threat than the GA election, no matter who wins. Pubs are fighting amongst them selves over free money so there you have it. Free money, just a debate over how much free money
Just in case you don't know I think the Dems control the senate so we might as well get used to it
I hope I am wrong, but I bet I am not wrong about free money
Good points Wayne,
One can’t make a case for a continuing free money policy since this was tied to COVID relief but that could. Chase with dems in charge as you noted.
Who will pay for it?
Higher taxes with dems in charge.
The us will be morphing into socialism as the rest of the world heads towards global socialism....which is what the climate accord is all about.
The United Nations will be our mommy and daddy.
Nobody will or can pay for the debt
Just stop and think
One of the biggest myths of all time
There is no possible way to tax enough to pay the debt
If the debt was paid the gov't would own and then sell to some body every asset you own, which won't happen, depending on how many assets you own. of coarse. Take a look at the average debt/capita. Then figure out how many don't have those assets thus you would have to sell more assets
Who would buy the assets??? There would not be enough buyers although the world order wants those assets for free
China sure won't buy the assets. They don't have enough Yaun. That is why they are in Africa where they lend money at 20% for big projects and let some tin pot skim a few million, then own the assets when the gov't defaults
Won't happen in the USA unless uncle Joe really goes full criminal
What is likely to happen and we see it now
The dollar loses value, monetizing the debt as much as possible
Danger is run away inflation
Don't believe me??
Look at the price of houses and vechicles.
1st sign of inflation
My son is paying more for raw product [steel] inflation
Grain prices inflation
Farm bldgs being built. We need a bigger storage shed. 20.00 per sq ft. bare bones. 80x200= 360,000.00 Inflation Plus doors, cement etc My other bldg 48x120 was 80,000 with 5 doors one of which is a 40'bi-fold and 48x48 6"cementt fully insulated
We need it new storage that wide if we want our trucks inside with drive thru. Ever tried to back up a train with out hitting some thing. Not some thing tired drivers want for two people to do at mid nite
Tractors 1000.00/H.P 300 H.P 300,000.00
So long as liquidity is pumped into the economy, dollar down
GDP can't produce enough to pay Corp taxes on debt
So there you have it
There is no place to tax enough to pay the debt
Buy your big ticket items now and pay the debt with inflated dollars
We have a 3 yr and 5 yr plan for inflation
I've been worrying about inflation for my entire adult life. So far, it hasn't been an existential problem. By that I mean what happened in Germany in the 1920s. It didn't matter how much money you had. You became poor. Who gained? Farmers who had grain and livestock.
I've owned gold for 20 years and that is my inflation insurance. It has of course, been a horrible "investment". I put it in air quotes because all insurance policies are by definition bad bets with negative expected value.
The only deflationary undercurrent is the explosion in productivity with technology.
If a toaster does more and last 3 times longer then it doesn't actually matter that the price doubled. Owning a toaster got cheaper. Extend those technological gains to all sorts of other stuff and you have some deflationary push back. And the mother of all economic revolutions is Artificial Intelligence.
I agree some things are cheaper and last longer
But not all things last longer
We buy steel chain. lots of it for sprockets etc. If we buy chinese it is cheaper but crap
USA steel chains and bearings last much longer
We bought a new combine some yrs ago. The very 1st pieces of new equipment then and today we still buy mostly used, except some are not on the used market so we were forced to buy two pieces of tillage new
That combine was excellent except it had built in length of operation. Can you believe the tin was so thin we wore holes, patched and re patched holes until there was nothing good to weld a patch. That combine was 8 yrs old and destined as a parts machine. I bought used combines 8 yrs old when I 1st started and did repairs but at least It could be fixed.
A tractor with 3500 engine hrs is looking at 30,000.00 in repairs. Trust me we bought used and over two yrs spent 30,000.00 in repairs on a purchase price of 50,000.00 and a name brand machine. Today it has 5500 hrs but when will the next 10,000 repair bill come
In effect you either trade at low hrs and pay deprec or pay repairs. This isn't a toaster you can throw away
Some machines have huge hrs but the service record shows big repair bills
A 24 row corn planter can cost up to and more than 1000.00/row to re-build plus many hrs in the shop doing the work. Or you can buy new for 400,000.00
So some things don't last longer, when you adjust for acres of work vs cost/acre
Yes we do as much in one day as three or more [5-6] but the cost is more today
Inflation??? or built in crap. The manufacturer could use heavier steel but don't
Is the bumper on your car steel or plastic
If you get stuck in the snow can a friendly farmer hook a tractor on your car and pull you out of the snow bank???
Okay you dig down into the snow bank and find the proper holes used to transport cars on car carriers. Most don't use holes any longer, they use straps around the wheels. Is your friendly farmer equiped to pull you out of the snow bank
Have a cup of coffee and hope the tow truck arrives some time today and have the plastic ready
AI has been tried on farms. But the price won't work and not for a long time. Just imagine a camera failing and your AI machine hits a school bus
Todays combines have a truck load of cameras to adjust operation but will not work with out a driver in the seat of the machine
Heck we even install cameras, doing the work ourselves, on stock cars, [before lock down shut the track down] to monitor the action of the car in real time on the race track
Yes we use AI in our own way [simple applications are not hard] you need to know CAD in a fabricating shop for many yrs past, but true AI is some time away
Many things are not cheaper when based on hrs of use vs repairs or production cost of work done/unit
Where will Elon Musk re-cycle his batteries and at what cost???
Heck even an electric golf cart with batteries need costly repairs after x number of hrs of useage
Used electric golf carts are cheap if the batteries are worn out
About/almost 2000.00 CAD to fix an old electric golf cart, depending if you do your own work
Wonderful points joj!
If we didn’t have enough to worry about—Covid-19, a nation divided, massive job losses and civil unrest—now we have to be concerned that robots will take our jobs.
The World Economic Forum (WEF) concluded in a recent report that “a new generation of smart machines, fueled by rapid advances in artificial intelligence (AI) and robotics, could potentially replace a large proportion of existing human jobs.” Robotics and AI will cause a serious “double-disruption,” as the coronavirus pandemic pushed companies to fast-track the deployment of new technologies to slash costs, enhance productivity and be less reliant on real-life people.
Millions of people have lost their jobs due to the effects of the Covid-19 pandemic and now the machines will take away even more jobs from workers, according to the WEF. The organization cites that automation will supplant about 85 million jobs by 2025. WEF says there’s nothing to worry about since its analysis anticipates the future tech-driven economy will create 97 million new jobs. Currently, approximately 30% of all tasks are done by machines—and people do the rest. However, by the year 2025, it's believed that the balance will dramatically change to a 50-50 combination of humans and machines.
In a dire prediction, WEF said, “While some new jobs would be created as in the past, the concern is there may not be enough of these to go round, particularly as the cost of smart machines falls over time and their capabilities increase.”
Concerns of new technologies disrupting the workforce and causing job losses have been around for a long time. On one side, the argument is automation will create better new jobs and erase the need for physical labor. The counterclaim is that people without the appropriate skills will be displaced and not have a home in the new environment.