Fed girl slaps Joe

[gatomontes99]

A recent study by the Federal Reserve challenges the Biden administration's perspective on inflation, identifying economic policies and conditions rather than corporate pricing strategies as the main drivers.

So let me break this down for those that don't understand retail. The easiest example I can think of is gas, but it applies to all goods.

Lets say you have a 10,000 gallon tank for storing gas to sell. Now, you would never do this, but for ease of explanation, let's say you buy a full tank and then sell every last drop before you buy the next tank.

If we buy the gas at $2 a gallon and we want $5000 to cover operating costs and $5000 to put in our pocket, we would charge $3 a gallon for the gas (assuming that is competitive). When the tank runs dry, we have been paid $30,000. $20,000 went to buying the gas we sold and $5000 went to operating costs. We profited $5000 and have $20,000 left to restock the tank.

Follow me so far?

What if the next tank is $3 a gallon to restock? I would need $30,000 to fill the tank. If I knew ahead of time, I would be able to raise my prices to have operating capital that was sufficient.

So, even though I only paid $20,000 for this tank, I would charge $4 a gallon, take in $40,000 in revenue and spend $5000 on operating cost and my profit would be $15,000. But that extra $10,000 would go to restocking, so I have $5000 in my pocket and a higher tax bill, so I end up with even less.

Is this making any sense? My profit increased by 200% but I have the same amount if money, if not less. Profits aren't the whole story and Joe is hoping you'll be dumb enough to fall for this lie. And most are.

[Fluffypants]

Like the dark side liberals only deal in absolutes. They don't look at what profit margins are or what they dollar is actually worth, only in the amount of money they make.

Same thing with minimum wage they think all they have to do is keep increasing it and poverty goes away. They don't realize that when they do that employers look to lay off employees and use technology to replace them and they increase the prices on the goods.

Employment works the same as supply and demand, the more labor available the lower the pay and vice versa, which is why it baffles me why liberals love illegal immigrants so much since they suppress the pay and lower the supply on the jobs poorer people should be doing.

In California they increased the pay for fast food workers to above what the market could handle and business closings, massive layoffs and increased prices followed displacing workers that were making 15 dollars to making 0 dollars an hour.

Edited June 11, 2024 by Fluffypants

[robosmith]

7 hours ago, gatomontes99 said:

A recent study by the Federal Reserve challenges the Biden administration's perspective on inflation, identifying economic policies and conditions rather than corporate pricing strategies as the main drivers.

So let me break this down for those that don't understand retail. The easiest example I can think of is gas, but it applies to all goods.

Lets say you have a 10,000 gallon tank for storing gas to sell. Now, you would never do this, but for ease of explanation, let's say you buy a full tank and then sell every last drop before you buy the next tank.

If we buy the gas at $2 a gallon and we want $5000 to cover operating costs and $5000 to put in our pocket, we would charge $3 a gallon for the gas (assuming that is competitive). When the tank runs dry, we have been paid $30,000. $20,000 went to buying the gas we sold and $5000 went to operating costs. We profited $5000 and have $20,000 left to restock the tank.

Follow me so far?

What if the next tank is $3 a gallon to restock? I would need $30,000 to fill the tank. If I knew ahead of time, I would be able to raise my prices to have operating capital that was sufficient.

So, even though I only paid $20,000 for this tank, I would charge $4 a gallon, take in $40,000 in revenue and spend $5000 on operating cost and my profit would be $15,000. But that extra $10,000 would go to restocking, so I have $5000 in my pocket and a higher tax bill, so I end up with even less.

Is this making any sense? My profit increased by 200% but I have the same amount if money, if not less. Profits aren't the whole story and Joe is hoping you'll be dumb enough to fall for this lie. And most are.

Fortunately most are NOT dumb enough to fall for believing your ^CHERRY PICKED narrative is universal.

Unfortunately YOUR gratuitous cite contains NO EVIDENCE for your claims, not even a link to the "recent study by the Federal Reserve" LMAO

IF Biden's spending was the major cause of inflation, it would not have been just as high everywhere else in the Western world.

The FACT is, supplies are REDUCED due to sanctions on Russia and Iran and the pipeline being depleted during the low volume pandemic.. Econ 101 tells us the reduced supplies CAUSE higher prices. Duh

 

[Guest]

That thread title was misleading.

[Moonbox]

Worthless, misleading citation - garbage post. 

[gatomontes99]

Here is the full report by the St. Louis Fed.

https://www.stlouisfed.org/annual-report/2023/essay

Nothing about corporate greed. Instead, it is facts and data.

And Here is an article that talks about replacement costs: https://www.investopedia.com/terms/r/replacementcost.asp

Edited June 12, 2024 by gatomontes99

[Rebound]

On 6/11/2024 at 10:41 AM, Fluffypants said:

Like the dark side liberals only deal in absolutes. They don't look at what profit margins are or what they dollar is actually worth, only in the amount of money they make.

Same thing with minimum wage they think all they have to do is keep increasing it and poverty goes away. They don't realize that when they do that employers look to lay off employees and use technology to replace them and they increase the prices on the goods.

Employment works the same as supply and demand, the more labor available the lower the pay and vice versa, which is why it baffles me why liberals love illegal immigrants so much since they suppress the pay and lower the supply on the jobs poorer people should be doing.

In California they increased the pay for fast food workers to above what the market could handle and business closings, massive layoffs and increased prices followed displacing workers that were making 15 dollars to making 0 dollars an hour.

So, you mean to say that the United States economy is complex? Big admission from a conservative. You guys have been peddling this oversimplified supply side nonsense for decades.

[robosmith]

5 hours ago, gatomontes99 said:

Here is the full report by the St. Louis Fed.

https://www.stlouisfed.org/annual-report/2023/essay

Nothing about corporate greed. Instead, it is facts and data.

Your naked link does NOT make your case. 

Of course the cite contains MULTIPLE possible explanations, but you've not quoted ANY of them here.

5 hours ago, gatomontes99 said:

And Here is an article that talks about replacement costs: https://www.investopedia.com/terms/r/replacementcost.asp

^This article is about assets, not your anecdotal story about cost of goods sold.

[CdnFox]

1 hour ago, Rebound said:

So, you mean to say that the United States economy is complex? Big admission from a conservative. You guys have been peddling this oversimplified supply side nonsense for decades.

Actually the opposite is true. Most of the republican arguments I see on the forums regarding economy tend to take a larger picture view. Most of the democrat supporting views I see tend to be extremely simplistic.

For example democrats will tend to point to gDP and say ah there you go the economy's great. And that is a absolutely ridiculous indicator in and of itself in isolation.

Republicans at least tend to look at things like GDP per capita which is at least a starting point of something. Then I see more complex discussions about the interplay between gP per capita and inflation and interest rates etc

If anything the left tends to try and oversimplify in favor of their position. The problem is people actually living in the real world can see that they have less money to buy things and they understand that inflation is something that the government has the ability to impact.

38 minutes ago, robosmith said:

Your naked link does NOT make your case. 

 

Absolutely! I'll link should be tastefully dressed and modest in appearance.

I swear it feels like you get weirder everyday. "Naked link"?  LOL!