American Economics Thread

chgough34

Junior Member
Registered Member
First of all, I'm really surprised you're here talking about the effectiveness of the US government right after the debate in which your country just showcased the (lack of) mental acuity of the 2 men who are supposedly the best in the US vying for the presidency.
Because the executive branch is substantially bigger than the president - and most federal power does not run through the White House, but instead through federal agencies that operate based on delegation from Congress and are staffed by a permanent professional career bureaucracy, a point that even the recent Loper Bright Supreme Court case affirmed.
Once again, you've confused trying to do something vs doing something. Trying to do something is passing a bill and allocating money for a project. Having the project bear fruit with new world-leading technology is actually doing something. So in the next 2 paragraphs, you've shown no evidence of congress or US politicians doing anything.
Congress is made up of 535 members whose only power is to make laws. Them passing laws is their entire job - the actual implementation is of course, left to the executive branch.
They're trying to do something. Results pending. Evidence of nothing, especially nothing to brag about.
Obviously, you cannot successfully complete something without authorizing it, something only the Congress can do with it passes an authorizing statue.
This I congratulate them on. Branches of the government that are run by scientists rather than career politicians such as the CDC and FDA are something I hold in high regard. Unfortunately, it is often that the well-thought-out efforts of these respectable scientists are shot down and rejected by higher ranking politicians in congress who are intellectually unfit to lick clean the shoes of these scientists, a scenario most pronounced during COVID.
The CDC only acts pursuant to congressional authority under the Public Health Service Act; the FDA acts pursuant to the congressional authority under the Pure Food and Drug Act. Agencies are certainly free to suggest policy actions but it is Congress, not the agencies that make the laws and conduct balancing tests. Fundamentally, during COVID, the people wanted things open and were much more risk-loving than CDC staffers. And regardless, the point was highlighting the new drug by Eli Lilly (of Indiana) for treating Alzheimer’s, the 2nd in class drug, following Merck (of New Jersey)
That has nothing to do with congress; that is 2 private US companies signing a contract with each other.
And it wasn’t supposed to be related to Congress. It was showing a new innovative geothermal technology from a firm in Houston, TX being mass deployed by a firm in Los Angeles County, CA.
Of course, government plays an integral role in US energy technology innovation, see for example, the Energy Policy and Conservation Act, the 2005 Energy Policy Act, the Public Utilities Regulatory Policy Act, as well as state economic regulators - in this case, the California Public Utilities Commission - which have for over a century, have ensured fair and reasonable utility rates that do not burden consumers and ensure solvency of utilities and their enduring attractiveness to the capital markets
Once again, spending money is not getting results.

What does "below historic highs" even mean?
Everyday you've either set a new record or you're below historic highs. Also, having immigrants doesn't mean they're the valuable type of immigrants and it doesn't mean that they assimilate to your culture, not that that matters anyway if they're not the right/valuable type.
It means the current foreign-born share of the population is below the highest level ever recorded. It was simply evidence that a high foreign-born share of the population is neither unprecedented or a crisis. It is even more probative since many states had their highest foreign-born shares in the early to mid-1800s, when there was not a single federal law restricting immigration in any shape or form. The post-1965 regulatory regime is much more restrictive on immigration and has resulted in immigrants that are much more positively selected on all observable characteristics and willing to assimilate (ex., if you are willing to wait 15 years for a family reunification greencard - you must really want to come to America). Indeed, even a report commissioned by Republicans has found immigrants are a net positive fiscal contributor (
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Your entire post is of no value, a conglomeration of random articles poorly masquerading as evidence of competence within the US government
It was a grab bag of articles - one on Congressional acts, a handful on private sector innovation, and an interesting historical look-through on immigration.
 

SlothmanAllen

Junior Member
Registered Member
Unfortunately for Americans, propaganda can only do so much. And they say that China is a state-controlled economy lol

Government spending as a share of GDP in the US is actually much smaller than other Western nations, though I believe they are slightly higher than China's!

The chart below comes from the IMF and shows that US and China have more in common in terms of government spending as a percent of GDP than the US does with the other Western nations. Though I imagine there might be differences in calculation that might change these figures meaning.

EDIT:

2024-07-05_14-20-22.jpg
 

manqiangrexue

Brigadier
Because the executive branch is substantially bigger than the president - and most federal power does not run through the White House, but instead through federal agencies that operate based on delegation from Congress and are staffed by a permanent professional career bureaucracy, a point that even the recent Loper Bright Supreme Court case affirmed.
Your country had a democratic system to pick one guy, the best of the best, out of 330 million people. He's up there talking like a dude mid-stroke except he apparently passed his medical exam. And you have an excuse for that? That there's more people than him? LOL This your alpha dog. Look at your democratically-elected alpha dog; don't ignore him or throw him under the bus.
Congress is made up of 535 members whose only power is to make laws. Them passing laws is their entire job - the actual implementation is of course, left to the executive branch.

Obviously, you cannot successfully complete something without authorizing it, something only the Congress can do with it passes an authorizing statue.
Laws are not intrinsic; passing laws is not a success. You can have a bunch of clowns pass a law that says Diseases Can't Exist; that's not success. If the result is that scientists use the law to eliminate disease, then that is a success. You evaluate the success of a law-passing entity by the results of the laws they pass, not simply by the fact that they passed laws.
The CDC only acts pursuant to congressional authority under the Public Health Service Act; the FDA acts pursuant to the congressional authority under the Pure Food and Drug Act. Agencies are certainly free to suggest policy actions but it is Congress, not the agencies that make the laws and conduct balancing tests. Fundamentally, during COVID, the people wanted things open and were much more risk-loving than CDC staffers. And regardless, the point was highlighting the new drug by Eli Lilly (of Indiana) for treating Alzheimer’s, the 2nd in class drug, following Merck (of New Jersey)
The CDC and FDA do the best job they can with the limits set by an ineffective Congress. The CDC made suggestions during COVID that would have saved hundreds of thousands of lives and Congress should have noted that they are to top authority so their guidlines need to be adhered to. Instead, they were more worried about votes to stay in power so they told the people they can disregard the CDC's recommendations and failed to institute laws to reinforce them. That is what happens when pea-brained career politicians override the power of highly educated doctors.
And it wasn’t supposed to be related to Congress. It was showing a new innovative geothermal technology from a firm in Houston, TX being mass deployed by a firm in Los Angeles County, CA.
So this was randomly inserted and had nothing to do with the thesis of your post that Congress is not ineffective?
Of course, government plays an integral role in US energy technology innovation, see for example, the Energy Policy and Conservation Act, the 2005 Energy Policy Act, the Public Utilities Regulatory Policy Act, as well as state economic regulators - in this case, the California Public Utilities Commission - which have for over a century, have ensured fair and reasonable utility rates that do not burden consumers and ensure solvency of utilities and their enduring attractiveness to the capital markets
Congress sets limits while actually competent entities manage as best they can.
It means the current foreign-born share of the population is below the highest level ever recorded.
That's a stupid thing to say. It's assumed unless someone says that a record was broken. That's as stupid as the weather channel saying every day that the current temperature is below the highest ever recorded. No wonder you're attracted to this nonsense; this is how you write as well.
It was simply evidence that a high foreign-born share of the population is neither unprecedented or a crisis. It is even more probative since many states had their highest foreign-born shares in the early to mid-1800s, when there was not a single federal law restricting immigration in any shape or form. The post-1965 regulatory regime is much more restrictive on immigration and has resulted in immigrants that are much more positively selected on all observable characteristics and willing to assimilate (ex., if you are willing to wait 15 years for a family reunification greencard - you must really want to come to America). Indeed, even a report commissioned by Republicans has found immigrants are a net positive fiscal contributor (
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t's simply pointless is that it is. Another random statement that does not support or connect with your thesis.
It was a grab bag of articles - one on Congressional acts, a handful on private sector innovation, and an interesting historical look-through on immigration.
Next time, your thesis should be "grab bag of articles," not "Yet more evidence against 'lol Congress doesn’t do anything'” I wouldn't waste my time arguing against a grab bag of articles LOL
 

chgough34

Junior Member
Registered Member
Your country had a democratic system to pick one guy, the best of the best, out of 330 million people. He's up there talking like a dude mid-stroke except he apparently passed his medical exam. And you have an excuse for that? That there's more people than him? LOL This your alpha dog. Look at your democratically-elected alpha dog; don't ignore him or throw him under the bus.
You seem unfamiliar with how the U.S. executive branch functions.

Executive agencies only function with express grants of authority from Congress and their enforcement and regulatory powers thus come from authorizing statues - for most agency rulemaking, there simply isn’t any White House involvement, for major agency rulemaking, there generally is an OIRA/OMB veto involved but simply, the White House lacks authority over the day to day running of executive agencies (their general only source of authority over the agencies is through their appointments power and through potential vetos over major regulations).

The White House/Presidency does have plenary power over foreign affairs, as the Supreme Court confirmed in United States v. Curtis-Wright Exporting Co. (1936) but even there, the president plays the role of referee - since policy proposals will originate both within the White House (ex., from the NSC) and from executive branch agencies (State, Defense, etc).

Thus tl;dr assuming “lol the executive branch can’t function” outside of the presidency is simply unsupported by fact - when the most economically significant parts of the executive branch operate a quite a distance away from the White House and have separate grants of authority independent of the presidency. In fact, even assuming your assertions on the presidency are true, that serves as no blocker since “lol Regan actually senile” was the hot talk of Washington for many years, yet Regan’s presidency is widely celeb
Laws are not intrinsic; passing laws is not a success. You can have a bunch of clowns pass a law that says Diseases Can't Exist; that's not success. If the result is that scientists use the law to eliminate disease, then that is a success. You evaluate the success of a law-passing entity by the results of the laws they pass, not simply by the fact that they passed laws.
Laws being passed is newsworthy in its own right - and measures of Congressional efficacy in the short run are about legislation and its fiscal impacts. The results of the law won’t be known for several years but people can make likely predictions (and for the Parkinson’s Disease bill - you have near unanimous support from both researchers). And you obviously can’t evaluate the effect of a law if it doesn’t exist (and only Congress can pass laws).
The CDC and FDA do the best job they can with the limits set by an ineffective Congress.
The CDC and FDA are entirely creations of Congress. Their organizational charts and missions are entirely creations of Congress. Their funding is entirely provided by Congress. Their staffing is entirely governed by the 1978 Civil Service Reform Act. Their agency success (or failure) is inseparable from Congress (as is the case with any executive branch agency).
The CDC made suggestions during COVID that would have saved hundreds of thousands of lives and Congress should have noted that they are to top authority so their guidlines need to be adhered to. Instead, they were more worried about votes to stay in power so they told the people they can disregard the CDC's recommendations and failed to institute laws to reinforce them.
So there was a balancing test on the statistical value of a life and Congress and the public were more risk-loving than the CDC (in the least surprising news in the world). “Congress” being worried about votes doesn’t make much sense since 90%+ of Congress members are from safe districts, they will be re-elected no matter what since partisanship is strong. No one wanted the CDC’s risk-aversion, people were broadly okay with living with the virus, and elevated mortality levels among old people were a price (even the old people) were willing to accept. Minimizing mortality as a policy goal is a generally good idea but as usual, it’s balanced against other competing priorities - which is why pick-up trucks not banned and fossil energy is not banned even if some NHTSA or EPA staffers desire otherwise.
That is what happens when pea-brained career politicians override the power of highly educated doctors.
Yeah, no. This has always been the case since executive agencies are creations of Congress and thus are subject to whatever Congress decides.
So this was randomly inserted and had nothing to do with the thesis of your post that Congress is not ineffective?
No. It was a separate thought and a separate article. One post can contain multiple different ideas.
Congress sets limits while actually competent entities manage as best they can.
Congress created the framework for energy research & development and for stable electricity markets in the U.S lol
That's a stupid thing to say. It's assumed unless someone says that a record was broken.
No. It’s not pointless. If U.S. states can thrive when their populations are 30%+ foreign born, then it is clear that 15%+ foreign-born populations are not a barrier to accomplishing anything
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t's simply pointless is that it is. Another random statement that does not support or connect with your thesis.
It is obviously not pointless that immigrants are net fiscal contributors. It shows the continued and enduring brilliance of the 1965 Immigration and Nationality Act
Next time, your thesis should be "grab bag of articles," not "Yet more evidence against 'lol Congress doesn’t do anything'” I wouldn't waste my time arguing against a grab bag of articles LOL
You had both articles documenting various innovation (a new Eli Lilly drug, geothermal energy, data center construction) and an article documenting a new law passed by Congress on fighting Parkinson’s Disease
 

chgough34

Junior Member
Registered Member
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American economic and financial life is so distressing that American tourists are flocking to Europe (and other geographies) in order to get their mind off their paycheck-to-paycheck (whatever that means) living and the terrible macroeconomic situation in the US.

In fact, US economic and financial life is so terrible, everyone is now buying specialty and more expensive fruits like berries since apples and oranges lack the anti-anxiety capacity.
 

Sinnavuuty

Senior Member
Registered Member
American Dream!!!

A typical U.S. family now has to spend $1,069 more per month just to buy exactly the same goods and services they did three years ago:
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The typical U.S. household needed to pay $227 more a month in March to purchase the same goods and services it did one year ago because of still-high inflation. Americans are paying on average $784 more each month compared with the same time two years ago and $1,069 more compared with three years ago.
Over the course of an entire year, that's almost $13,000 more. Month after month, prices keep rising, but those who are running things keep insisting that everything is fine.
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A TikTok video about rising food prices at Walmart quickly gained more than a million views. The person who made the video found a grocery order they had placed two years ago and decided to click the “Reorder All” button to see how much that same order would cost today…
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A recent TikTok video has gone viral, showing a user’s surprising experience with Walmart’s grocery prices. The user explained in his video that he tried to use the “Reorder All” button for an order he placed two years ago, which originally cost $126.67. To his shock, the same order would now cost $414.39.
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Many of the things you regularly buy at the supermarket have doubled or more than doubled in price, but in this case the total cost of the supermarket order has more than tripled.
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Just like in 2008, defaults are increasing. In fact, credit card delinquencies have now reached the highest level we've seen in over 10 years:
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Meanwhile, more consumers aren’t making loan payments on time. Credit card delinquencies have hit their highest level in over a decade, and auto delinquencies are also spiking. This could prove to be yet another tripwire for the stock market, as consumer spending accounts for about 70% of U.S. economic activity.
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The commercial real estate crisis continues to escalate. An article that originally appeared in the New York Times claims that major Wall Street banks “have begun unloading their commercial real estate loan portfolios in hopes of cutting their losses.”
Some Wall Street banks, worried that landlords of vacant and struggling office buildings won’t be able to pay off their mortgages, have begun offloading their portfolios of commercial real estate loans hoping to cut their losses.

It’s an early but telling sign of the broader distress brewing in the commercial real estate market, which is hurting from the twin punches of high interest rates, which make it harder to refinance loans, and low occupancy rates for office buildings — an outcome of the pandemic.
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When banks have problems, they start closing branches. So far this year, US banks have closed more than 400 branches across the country, increasing banking concentration.
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US banks closed 51 branches across the country in the first three weeks of June.

The figures suggest banks are committed to increasingly offering their services online and axing costly bricks-and-mortar locations.

More than 400 bank branches have closed so far in 2024.
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Big companies are laying off workers from coast to coast. For example, approximately 500 Texas truck drivers just lost their jobs when a large logistics company abruptly closed its doors forever
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A truck and logistics company has abruptly shut – affecting 2,000 workers – just three years after being bought by private equity.

Out of the blue, staff at US Logistics Solutions were given news on Thursday that they were out of a job and would also not get their paychecks on Friday.

Around 500 were truck drivers, and the rest a mixture of warehouse, dock and office workers at the Humble, Texas- based company.
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Retail chains continue to fail at a frightening rate. It was reported that two major retailers in the Northeast have made the decision to file for bankruptcy
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Two sister chains that sell sporting goods have filed for bankruptcy as retailers continue to struggle.

Bob’s Stores, which sells athletic and casual clothing, and outdoor gear retailer Eastern Mountain Sports together have 50 stores across the northeast of America.
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Housing in the US is now more unaffordable than ever
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The housing cost burden has hit a record, according to a new report from Harvard’s Joint Center for Housing Studies.

Home prices are now 47% higher than they were in early 2020, with the median sale price now five times the median household income, according to the study.
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Two-thirds of respondents to a recent survey indicated that they had to take steps to deal with increasing financial stress in the past year. These actions included “cutting expenses, skipping monthly bills, or taking on an additional job”.
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manqiangrexue

Brigadier
You seem unfamiliar with how the U.S. executive branch functions.

Executive agencies only function with express grants of authority from Congress and their enforcement and regulatory powers thus come from authorizing statues - for most agency rulemaking, there simply isn’t any White House involvement, for major agency rulemaking, there generally is an OIRA/OMB veto involved but simply, the White House lacks authority over the day to day running of executive agencies (their general only source of authority over the agencies is through their appointments power and through potential vetos over major regulations).

The White House/Presidency does have plenary power over foreign affairs, as the Supreme Court confirmed in United States v. Curtis-Wright Exporting Co. (1936) but even there, the president plays the role of referee - since policy proposals will originate both within the White House (ex., from the NSC) and from executive branch agencies (State, Defense, etc).

Thus tl;dr assuming “lol the executive branch can’t function” outside of the presidency is simply unsupported by fact - when the most economically significant parts of the executive branch operate a quite a distance away from the White House and have separate grants of authority independent of the presidency. In fact, even assuming your assertions on the presidency are true, that serves as no blocker since “lol Regan actually senile” was the hot talk of Washington for many years, yet Regan’s presidency is widely celeb
No, I'm quite familiar with it all, especially your elections in which a president can win the electoral vote while losing the majority vote. I'm saying your system is stupid as hell and has led to the situation in which you have 2 presidential candidates who are both known for incompetence and senility and now, the only defense an American can have for them is that there are other people LOL. Well then those other people would be president if your system wasn't dysfunctional, shouldn't they?
Laws being passed is newsworthy in its own right - and measures of Congressional efficacy in the short run are about legislation and its fiscal impacts. The results of the law won’t be known for several years but people can make likely predictions (and for the Parkinson’s Disease bill - you have near unanimous support from both researchers). And you obviously can’t evaluate the effect of a law if it doesn’t exist (and only Congress can pass laws).
They are at best mildly informational but certainly NOT evidence of any competence as you attempted to assert. They would be fitting as another part of the random grab bag only.
The CDC and FDA are entirely creations of Congress. Their organizational charts and missions are entirely creations of Congress. Their funding is entirely provided by Congress. Their staffing is entirely governed by the 1978 Civil Service Reform Act. Their agency success (or failure) is inseparable from Congress (as is the case with any executive branch agency).
They were created by Congress in the sense that a brilliant scientist can have a drunk useless father.
So there was a balancing test on the statistical value of a life and Congress and the public were more risk-loving than the CDC (in the least surprising news in the world). “Congress” being worried about votes doesn’t make much sense since 90%+ of Congress members are from safe districts, they will be re-elected no matter what since partisanship is strong. No one wanted the CDC’s risk-aversion, people were broadly okay with living with the virus, and elevated mortality levels among old people were a price (even the old people) were willing to accept. Minimizing mortality as a policy goal is a generally good idea but as usual, it’s balanced against other competing priorities - which is why pick-up trucks not banned and fossil energy is not banned even if some NHTSA or EPA staffers desire otherwise.
You Americans are so funny. Risk-loving is now the cool word for being an irresponsible dumbass, right?

US became the nation with the highest COVID deaths = Oh, that's just us being risk-loving! We like to play even if we die!
Americans live paycheck to paycheck = That's risk-loving; you guys are so boring with your risk aversion and 10 years salary in your savings! Splurge!
Americans have poor education = That's risk-loving trust in the American system that we can have fun all day at any age and still be ok in the end; studying is for the loser risk-averse!
Americans getting fat and diseased = That's trust in the US healthcare system allowing us to be risk-loving when we eat triple bacon cheeseburgers and serve burnt hotdogs and fake cheese pizza in our schools! We know we can go in for heart surgery and F off on the bill or put $200K on insurance which is then charged back to everyone!
Yeah, no. This has always been the case since executive agencies are creations of Congress and thus are subject to whatever Congress decides.
Yeah, yeah. Where's the no? You let unqualified people override qualified people now you have the highest COVID deaths in the world. Oh, wait, I mean the most "risk-loving" COVID deaths in the world LOL
No. It was a separate thought and a separate article. One post can contain multiple different ideas.
No? It looks like you just admitted that yes, it did actually have nothing to do with the failed "congress is effective" argument. Also, you should probably separate them clearly with a transition.
Congress created the framework for energy research & development and for stable electricity markets in the U.S lol
By your logic, then every success in every country is the success of the government. Way to steal credit.
No. It’s not pointless. If U.S. states can thrive when their populations are 30%+ foreign born, then it is clear that 15%+ foreign-born populations are not a barrier to accomplishing anything
1. Who said that a high immigrant population was a barrier?
2. Barrier or not, it's far more important the type of immigration than lumping all immigrants into one number. Your inferrence does not stand.
It is obviously not pointless that immigrants are net fiscal contributors.
Aren't they in every country? A net financial contributor is the lowest bar I can think of; even the most degenerate uneducated people typically manage that unless they're extreme welfare queens. The real questions to ask are:

1. How financially positive are they vs how much room do they take up in your society, which could have been allocated to other people?

2. Aside from the financial aspect, which is an artificial construct, what is their effect on technology, the eternal relationship between man and nature? Did they help you develop useful technology? Did they take it back home? Did your rival close a 5 decade gap with you in like 12 years and then get ahead of you because of them?

All questions that cannot be answered by some very rudimentary article lumping all immigrants together into useless information.
It shows the continued and enduring brilliance of the 1965 Immigration and Nationality Act
It shows nothing without answering the above questions.
You had both articles documenting various innovation (a new Eli Lilly drug, geothermal energy, data center construction) and an article documenting a new law passed by Congress on fighting Parkinson’s Disease
Right, random grab bag things that should have been clearly labelled as such, unworthy of any debate.
American economic and financial life is so distressing that American tourists are flocking to Europe (and other geographies) in order to get their mind off their paycheck-to-paycheck (whatever that means) living and the terrible macroeconomic situation in the US.
Poor financial choices are why they end up paycheck-to-paycheck. People with poor spending habits just can't hold onto money. Oh, wait, that means they're super exciting "risk-lovers," right? I know what that means; I gotcha [wink]
In fact, US economic and financial life is so terrible, everyone is now buying specialty and more expensive fruits like berries since apples and oranges lack the anti-anxiety capacity.
Again with the fruit LOL What does it say that Americans are gravitating towards fruits with an anti-anxiety component? That their lives are real good, right?
 
Last edited:

SanWenYu

Senior Member
Registered Member
American Dream!!!

A typical U.S. family now has to spend $1,069 more per month just to buy exactly the same goods and services they did three years ago:
Please, Log in or Register to view URLs content!

Over the course of an entire year, that's almost $13,000 more. Month after month, prices keep rising, but those who are running things keep insisting that everything is fine.
-
A TikTok video about rising food prices at Walmart quickly gained more than a million views. The person who made the video found a grocery order they had placed two years ago and decided to click the “Reorder All” button to see how much that same order would cost today…
Please, Log in or Register to view URLs content!

-
Many of the things you regularly buy at the supermarket have doubled or more than doubled in price, but in this case the total cost of the supermarket order has more than tripled.
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-
Just like in 2008, defaults are increasing. In fact, credit card delinquencies have now reached the highest level we've seen in over 10 years:
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-
The commercial real estate crisis continues to escalate. An article that originally appeared in the New York Times claims that major Wall Street banks “have begun unloading their commercial real estate loan portfolios in hopes of cutting their losses.”

-
When banks have problems, they start closing branches. So far this year, US banks have closed more than 400 branches across the country, increasing banking concentration.
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-
Big companies are laying off workers from coast to coast. For example, approximately 500 Texas truck drivers just lost their jobs when a large logistics company abruptly closed its doors forever
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-
Retail chains continue to fail at a frightening rate. It was reported that two major retailers in the Northeast have made the decision to file for bankruptcy
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-
Housing in the US is now more unaffordable than ever
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-
Two-thirds of respondents to a recent survey indicated that they had to take steps to deal with increasing financial stress in the past year. These actions included “cutting expenses, skipping monthly bills, or taking on an additional job”.
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Sleepy: my inflation is your problems.
 

Sinnavuuty

Senior Member
Registered Member
American Dream!!!
Part 2:
Millions of Americans are currently experiencing their own individual “economic meltdowns,” and that includes a longtime Democrat in Pennsylvania named Stacey Ellis, who was recently interviewed by the BBC:
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She has switched stores, cut out brand-name items like Dove soap and Stroehmann bread, and all but said goodbye to her favorite Chick-fil-A sandwich.

Still, Ms Ellis has sometimes turned to risky payday loans (short-term borrowing with high interest rates) as she grapples with grocery prices that have surged 25% since Mr Biden entered office in January 2021.

“Prior to inflation,” she says, “I didn’t have any debt, I didn’t have any credit cards, never applied for like a payday loan or any of those things. But since inflation, I needed to do all those things….I’ve had to downgrade my life completely.”
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A 26-year-old security guard from Brooklyn named Dylan Garcia now only eats twice a day because it's all he can afford:
Dylan Garcia, a 26-year-old security guard from Brooklyn, says he's never struggled to buy groceries as much as he has now.

Instead of the fresh food and brand-name items he used to enjoy, he now stocks up on ramen noodles and frozen vegetables – and only eats twice a day because he can't afford more.

At checkout, he routinely uses “buy now, pay later” schemes, which allow him to pay the bill in installments, but have led to mounting debt.
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Housing has become ridiculously unaffordable and this week they discovered that property prices are higher than ever:
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Findings from Redfin show the median U.S. home sale price soared to $397,954 in June – a nearly 5% increase from a year earlier. That marks the highest level on record and the biggest annual increase since March.

The monthly mortgage payment at that price, when accounting for the 6.86% median interest rate for a 30-year mortgage, is now $2,749. That is roughly $88 shy of April’s record, thanks to a slight drop in mortgage rates.
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In a desperate attempt to survive, many Americans are falling deeply into debt. This worked for a while, but now default rates are rising. In fact, the percentage of credit card balances considered seriously delinquent has reached the highest level in more than a decade:
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The flow of credit card debt moving into delinquency hit 8.9% in the first quarter at an annualized rate, above pre-pandemic levels. In fact, the percentage of credit card balances in serious delinquency – payments are at least 90 days late – rose to its highest level since 2012.
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This is an especially dangerous time to run up credit card debt because credit card interest rates have entered uncharted territory:
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Finally, a vivid reminder that once credit card rates go up they almost never go down, in Q2 the average interest rate on credit card accounts rose again, up to 22.76% from 22.63% in Q1 and 1 basis point below the all time high.

While so far consumers have intended they can afford to pay this interest upon interest, there will come a day when the brick wall will finally be reached and the US consumer's Wile E Coyote moment will finally come meet its gravitational implosion.
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Many companies across America are also reaching a breaking point here in 2024. For example, one of the largest flooring supplier chains in the entire country is on the verge of bankruptcy:
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One of America’s biggest flooring suppliers is considering bankruptcy – the latest retailer to face financial problems.

LL Flooring, with 442 stores across 47 states, has seen its sales falling over the past year as Americans cut back on renovating their homes.
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The company that makes Tonka trucks and Lincoln Logs has now officially filed for bankruptcy:
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A toy company behind favorite brands including Tonka, K’nex, and Care Bears has filed for bankruptcy.

Basic Fun also owns Playhut, Fisher Price Classics, Lite Brite and Lincoln Logs, and makes toys for Walmart, Target and amusement parks.

Tonka – famous for its rugged toy trucks – was founded in 1946 and celebrated its 75th birthday two years ago with Shaquille O’Neal.

Meanwhile, Care Bears were one of the biggest toys of the 1980s after being launched at the beginning of that decade.
 
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