Hoooooo boy. Buckle up - ThreadSky | a Reddit-style client for Bluesky

kairyssdal.bsky.social • 212 days ago

Hoooooo boy.

Buckle up

".. During a radio interview Saturday .., Bessent said 'tariffs can’t be inflationary because if the price of one thing goes up -- unless you give people more money -- then they have less money to spend on the other thing, so there is no inflation.'"

@cnn.com
www.cnn.com/2024/11/25/b...

Comments

dandwig.bsky.social•212 days ago

I suppose you could make an argument that, if the money supply doesn't increase, demand for some goods goes down, and demand for Giffen goods goes up, so there's no net change in prices. Maybe. Sort of.

But the price of caviar doesn't matter to those that can't buy bread.

idahodiehl.bsky.social•212 days ago

mudsludge.bsky.social•212 days ago

So we're gonna do this the hard way. Great

robodoggo.bsky.social•212 days ago

any good recipes for oven baked billionaire? asking for a friend

dolanecon.bsky.social•212 days ago

This is a great quote. I have written on sticky prices and relative prices as applied to post-Covid inflation. (Skim to section Sticky Prices: The Missing Element https://www.milkenreview.org/articles/how-sticky-prices-derailed-the-feds-new-inflation-plan ) I will use this in a new piece on risk of Trump-tariff induced inflation.

cottonmanifesto.bsky.social•212 days ago

What on earth

jeremymorong.bsky.social•212 days ago

I believe the expression is "The math ain't mathing."

sausalitocheese.bsky.social•212 days ago

The case for an atomic facepalm.

moseytech.bsky.social•212 days ago

This really has the same energy as "If we never test for COVID then there would never be COVID."

binaryequation.bsky.social•212 days ago

According to this "expert," inflation isn't simply a rise in consumer prices, but a rise in prices caused by a very specific event.

To summarize, he is gaslighting his audience.

"There is no war in Ba Sing Se."

budgibson.bsky.social•212 days ago

Spoken like a true populist.

paulbijhouwer.bsky.social•212 days ago

By that logic it is impossible for inflation to ever happen. What a relief!

schweinberghere.bsky.social•212 days ago

Well that explains how this guy was able to lose 90% of $6 billion. The dumbs are taking over. God help us.

booktweeting.bsky.social•212 days ago

figures that the dude who BANKRUPTED A CASINO would appoint someone like this

hnuttle.bsky.social•212 days ago

If I close my eyes, you can't see me

hnuttle.bsky.social•212 days ago

And strap in, gonna be painful

kenwhite.bsky.social•212 days ago

Kai I am not an economist and generally only understand 40% of what you say on the radio (70% in person) but that does not sound like it makes sense to me

funmandave.bsky.social•212 days ago

I once got partial credit in a PoliSci course by writing a page-long answer explaining what inflation is.

I was informed by the teacher I could’ve gotten full credit for writing “inflation is rising prices” and nothing more.

Now I gotta get governed by this moron.

anthonysurber.bsky.social•212 days ago

He's saying that there won't be inflation because people won't be able to afford to consume more, because of...inflation.

anthonysurber.bsky.social•212 days ago

I guess his point is that it's not 'inflation' if it's tariffs causing the price increase, not demand?

purrypurrydog.bsky.social•212 days ago

And he’ll be wrong…. It doesn’t matter what causes it. Inflation is just whether or not we see a price change over a period of time.

rich335.bsky.social•212 days ago

This is correct

bierquaffer.bsky.social•212 days ago

So the fact that eggs and dishwashers went up means that they spent less at Disney World. And therefore there was no inflation!

patrickbrettell.bsky.social•212 days ago

"Hooooo boy" is an expression of shock at something another has done or said.

"Buckle up" is a colloquialism indicating that events are going to become chaotic or interesting (e.g. a rough ride for which one should be wearing a seatbelt).

I don't believe the latter is exclusive to economists.

bananarepublican.xyz•212 days ago

People with better understanding than me are arguing whether to call it inflation or not. My takeaway is that it's like inflation except my wages won't keep up with the price increases. Maybe extra spicy inflation would be a good name.

rich335.bsky.social•212 days ago

That would be stagflation.

redback.bsky.social•212 days ago

Will they just slap them on businesses they have a grievance with?

So ONLY the products by businesses that haven't bent the knee, kissed the ring and bribed trump will be expensive?

Could that be the play?

richlevine6.bsky.social•212 days ago

Not an economist either, but seems to me if the prices of goods rise due to tariffs, in order to make ends meet people will demand pay increases, the companies that employ them (or if self-employed) will raise the prices on the goods/services they offer. Hence, inflation.

dandwig.bsky.social•212 days ago

Don't worry, they're going to make it illegal to demand pay increases, so it all works out.

(I wish I were kidding).

eggwards.bsky.social•212 days ago

That’s why you demolish organized labor.

purrypurrydog.bsky.social•212 days ago

Everything will makes sense, eventually, if you ingest enough peyote….

jeremymorong.bsky.social•212 days ago

cheshiremuser.bsky.social•212 days ago

Sounds like once the dissent pounces on him, he’ll be back in the stable looking for another vocation…like the merry-go-round of other clowns that are emerging from the abyss…

brianonline.bsky.social•212 days ago

I’m about 95% sure that I agree with you

yourgoodbuddy.bsky.social•212 days ago

I am also here to express my concern that I, an idiot who knows next to nothing about economics, might somehow know more than this man about tariffs.

markcathcart.com•212 days ago

He (Bessent) is not telling you what he knows, he is telling you what he wants you to hear "Tariffs don't cause inflation).

markcathcart.com•211 days ago

Thanks for all the likes, here is some bonus content for free, ie it doesn't create like inflation.

https://bsky.app/profile/stephaniekelton.bsky.social/post/3lbu3rwdxr22k

fermissocks.bsky.social•212 days ago

Bingo

fermissocks.bsky.social•212 days ago

Well, I'm not an Economist by trade, but do have an Econ heavy education.

You are both correct. He is dead wrong in this and I have to assume he knows it.

heydavidbailey.bsky.social•212 days ago

They want to make most of the country very poor again. And make themselves even more filthy rich. That is their goal.

ghostyspook.bsky.social•212 days ago

even better than the people who told me there wasn’t inflation bc people were spending more money on stuff

zakinsd.bsky.social•211 days ago

That doesn’t make sense to me, and I don’t know anything

comedypat4.bsky.social•212 days ago

Kai, are they all idiots? Or are they prepping us to sit back and accept everything while they loot the Treasury?

palelilspydr.bsky.social•212 days ago

I do not particularly want to be on this ride

stretchdad.bsky.social•212 days ago

WTAF? Of course people will have less money to spend on other things when tariffs raise prices. And isn't that exactly why Tr*mp voters are so pissed off about the price of eggs!? And how are increased prices *not* inflationary?

vhexcellent.bsky.social•212 days ago

Something something inelastic goods

martinobeat.bsky.social•212 days ago

isn't "the price of the thing going up" in the first half of his statement the inflation?

proggrrl.bsky.social•212 days ago

wtaf

tripsnek.com•212 days ago

Best part of this is that if the price of eggs went up 300%, Bessent the consumer likely would not even notice. He, along with 50%+ of america would just consume more and save less.

mhwill1999.bsky.social•211 days ago

Poverty as a solution to inflation. What will they think of next!

atlantadem.bsky.social•212 days ago

Spoken by a rich man who likely hasn't actually bought groceries or pumped gas in decades

atlantadem.bsky.social•212 days ago

Is he really that dumb? We aren't talking about money supply we are talking about price increases - 20% tarrifs on goods will increase prices - inflation will go up - regardless of whether people buy those - or stop buying other products

patrickbrettell.bsky.social•212 days ago

Maybe he's a monetarist: It's not inflation unless it's caused by a sudden increase in the money supply. Otherwise, it's just sparkling price increases.

atlantadem.bsky.social•212 days ago

ok - when the price of underwear at Walmart goes up 20%, and a bunch of other price increases arrive on the scene I look forward to Trump explaining he hasn't increased the money supply -

shhhhh-hush.bsky.social•212 days ago

That’s an excellent point. Walmart sets the price floor and everyone else follows.

tommcc.bsky.social•212 days ago

Uuuummmmm....wut?

vatmandu.bsky.social•212 days ago

If only there was such a thing as credit cards or, I know, overdraft protection … 🤔

fermissocks.bsky.social•212 days ago

There is ZERO chance he really thinks that is how it works. He is definitely just trying to appease the man baby.

mbornfreund.bsky.social•212 days ago

does this gif go over with blueskis?

leekfink.bsky.social•211 days ago

In a way, he’s right. Depressions tend to be deflationary.

purrypurrydog.bsky.social•212 days ago

Same dude …

ericrasmusen.bsky.social•212 days ago

Read prof. Cochrane at https://www.grumpy-economist.com/p/inflation-vs-prices . It's complicated. It's as likely that tariffs would cause a recession with no inflation as that they would cause inflation.

ericrasmusen.bsky.social•212 days ago

He's right, with the giant caveat of "unless we give them more money", which should be modified too "unless more money is created". But maybe that is the inevitable result of the tariffs.

ylookup.bsky.social•212 days ago

So is he saying they're going to make sure the reporting that comes out doesn't show inflation, no matter what is happening? And Fox will tell their viewers that $12 eggs are normal?

fufjek.bsky.social•212 days ago

Maybe, if on everything and it affects all people (incomes)

Team Biden had it right w/ Build Back Better and dropped the ball:
Inflation is childcare, med expenses, housing & elder care. All blocked by GOP & Manchin/Sinema

Dems didn’t fight for it, Harris tried to revive but failed to connect.

fufjek.bsky.social•212 days ago

While he says it won’t be inflation it will either be deflationary, and then potentially leading to stagflation.

But I’m not an economist, I just voted for sanity.

oncloverpond.bsky.social•212 days ago

So inflation is *only* based on wages??? Is that what he's saying? When you make less money, that's inflation, and when you make more money, that's deflation? 🤔

So the CPI has nothing to do with inflation? Got it.

sbfut3.bsky.social•212 days ago

He makes Larry Kudlow look like a brainiac.

desertortoise.bsky.social•212 days ago

What the‽

redplaidgoose.bsky.social•212 days ago

I was sure there was something in that comment that I was misunderstanding, because in an ideal world the Secretary of the Treasury should be smarter than I am.