2. This was neither unimaginable nor unforeseen. If you’ve ever picked up a history book, you’ll know that these things happen...all the time. Second, this was from unforeseeable in January. Any smart business owner was drawing his line of credit in early February.
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3. Where does all this money come from? Do we not believe in conservation of energy here? Eventually we’re going to wind up with hyperinflation if we keep printing massive amounts of money in response to every business culling event.
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Replying to @Molson_Hart
Inflation expectations fell off a cliff. Our current problem is too little inflation, not the opposite. Regardless, countercyclical stimulus is mainstream econ, you should at least offer a model if you're going to dismiss it.
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Replying to @avi_eisen
Disagree. We have huge inflation in education, housing, and healthcare. Mainstream Econ is trash. My alternative is real world experience and incentives.
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Replying to @Molson_Hart
Overall inflation is lower than wage growth, which means all of those things you mention are overall *more* affordable than in the past. What experience is telling you otherwise?
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Replying to @avi_eisen
Tell that to the middle class. What experience? Who from your and my cohort can afford a home?
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Replying to @Molson_Hart
https://www.census.gov/library/stories/2018/08/homeownership-by-age.html … Looks like the homeownership rate among young people went from around 40 to around 35 over the last third of a century? That's supposed to prove some massive unaffordability crisis?
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Replying to @avi_eisen
Look at real housing prices avi. Worth mentioning how many fewer kids people are having to afford those homes.
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Replying to @Molson_Hart
I never said housing inflation wasn't high. But overall affordability is measured by the average, which is inflation. If anything, measured inflation overestimates inflation because it doesn't account enough for increased quality. 1/x
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Replying to @avi_eisen @Molson_Hart
People have fewer kids as they get richer. Very clear pattern. https://en.wikipedia.org/wiki/Income_and_fertility … 2/x
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1. Correlation is not causation 2. Within society in olden times the richer you were the more kids you had. Something else is goi Ng on here
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Replying to @Molson_Hart
If entire countries get richer and suddenly birthrates sink, there's a strong argument for causation. All the evidence points towards that. Olden times didn't have contraception and it was likely a factor of resources to keep kids alive.
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