Breaking: inflation falls to 3%. Wage growth up for the first time in years

[Domination]

1 hour ago, If U Seek Amy said:

I mean I have student loans (though they’re private) but what did other people with student loans think was gonna happen exactly? Even if if Biden’s relief was approved for 10-20K and you got it and didn’t wipe it out? It wasn’t just going to be permanently dissolved any time soon in this congress and Biden isn’t going to wipe all of it. and clearly a payment pause wasn’t going to last forever 💀 Like I get it sucks but come on. You can keep playing victim about how evil the government is (and we do rightfully deserve to complain sometimes) or you could have spent all that time trying to position yourself better/preparing or decide to start acting to somehow try to prepare now. I mean I think it should be wiped 100% too, but let’s be realistic with what is going on and deal with it, not ***** and just do nothing for yourself. You knew this was coming eventually or should have prepared for the worse until it was guaranteed

It’s not about what people “thought” would happen or that the average American with debt is going to purposely act in a way that harms the US economy, it’s that the pandemic was an continues to be a major economic event. When you suddenly have 40 million Americans having several hundred dollars less on their bank accounts  every month, especially with prices still being high, you’re looking at a huge decrease in consumer spending that could throw the economy into a recession when rates are already so high.

[If U Seek Amy]

1 hour ago, Domination said:

It’s not about what people “thought” would happen or that the average American with debt is going to purposely act in a way that harms the US economy, it’s that the pandemic was an continues to be a major economic event. When you suddenly have 40 million Americans having several hundred dollars less on their bank accounts  every month, especially with prices still being high, you’re looking at a huge decrease in consumer spending that could throw the economy into a recession when rates are already so high.

The average student loan payment is about $500/month. If you take the average payment x 40 million Americans that is around 20 billion dollars lost to the economy a month (aka or 240 million a year) assuming they were even going to give that to the economy and not hoard it anyway. The US has a net worth of about 146 trillion and a GDP of about 25.5 trillion (this level of added income is less than 1% of this). Spreadout across the US I do not think 20 billion maximum a month is going to throw the economy into a recession in comparison to the overall money/net worth  Sure it would have a negative impact, but that is a vast over estimation of how big of an effect it will have

Edited July 12, 2023 by If U Seek Amy

[Domination]

25 minutes ago, If U Seek Amy said:

The average student loan payment is about $500/month. If you take the average payment x 40 million Americans that is around 20 billion dollars lost to the economy a month (aka or 240 million a year) assuming they were even going to give that to the economy and not hoard it anyway. The US has a net worth of about 146 trillion and a GDP of about 25.5 trillion (this level of added income is less than 1% of this). Spreadout across the US I do not think 20 billion maximum a month is going to throw the economy into a recession in comparison to the overall money/net worth  Sure it would have a negative impact, but that is a vast over estimation of how big of an effect it will have

Um my dear, please contact your university and ask them to reimburse you on those private loans because economics does not work like that.

[If U Seek Amy]

18 minutes ago, Domination said:

Um my dear, please contact your university and ask them to reimburse you on those private loans because economics does not work like that.

Yes it does. I literally majored in Finance/Economics and work in it lmao. A recession is a decline in GDP for 2 consecutive quarters. That money not going towards the economy is where a loss in GDP occurs (and if you want to get technical paying student loans does contribute to GDP but let's pretend it doesn't for the sake of argument). And my estimate is generous and maximized. Professional analysts think only 70 billion per year will be lost a year (or 17.5 billion a quarter if broken down equally). That is sooooo small big picture in the US per prior noted numbers. The US can make that up in the blink of an eye. So quite literally even if you argue it will trigger a recession, it is extremely unlikely to do so and there is TONS of info about how little of an impact this will have. I know many farther left talking points many live in emphasize this to the extreme so it seems that way, but that is not true at all. 

 

 Please feel free to explain in detail then why we would enter a recession otherwise? 

 

But I assume you aren't quite literally referring to a recession in the traditional sense of GDP. I am guessing you are referring to more people struggling in the US because of the resumed payments. Which yes, many absolutely will struggle sadly. But that comes back to my other point. You knew this likely was not going to be wiped in these conditions and had years and years. While if you quite literally can't do more than pay bills I understand. But if you weren't living paycheck to paycheck and living frivolously or going into more debt for things like concerts or vacations or personal expenditures that is on you sadly. It isn't fair and isn't right, but that is reality. And even that aside during that time many did not lose their job and had opportunities for advancements and the labor market for many industries is very strong right now and you can negotiate way higher salaries if you try. I literally made a lateral move at work and negotiated $13K more/year just because many industries are so desperate right now. I get that isn't literally everyone though. But with some effort it is possible and tons of jobs are open. So if you haven't taken action, it is time to stop complaining and focus on what you can control and do to help yourself. The government should do more to help people and make things better and right. But until then we need to work with what we can

 

I don't think this doesn't give anyone a right to complain and it absolutely is wrong. The loans should be forgiven 100%. But at the end of the day, you can choose to do nothing and complain or take action and do what you can to try to get over it/better your life. But don't live in some delusion student loans being resumed is going to wreck the economy. The government isn't going to just willingly let themselves fall apart so stupidly as stupid as they are sometimes. 

[Communion]

4 hours ago, If U Seek Amy said:

You can keep playing victim about how evil the government is

Voters: "it is a basic objective fact that restarting student debt payments will have a highly negative impact on the economy"

Vote Blue No Matter Who twitter people: "STOP BEING SO EMOTIONAL!!!!"

 

[spree]

5 hours ago, If U Seek Amy said:

I mean I have student loans (though they’re private) but what did other people with student loans think was gonna happen exactly? Even if if Biden’s relief was approved for 10-20K and you got it and didn’t wipe it out? It wasn’t just going to be permanently dissolved any time soon in this congress and Biden isn’t going to wipe all of it. and clearly a payment pause wasn’t going to last forever 💀 Like I get it sucks but come on. You can keep playing victim about how evil the government is (and we do rightfully deserve to complain sometimes) or you could have spent all that time trying to position yourself better/preparing or decide to start acting to somehow try to prepare now. I mean I think it should be wiped 100% too, but let’s be realistic with what is going on and deal with it, not ***** and just do nothing for yourself. You knew this was coming eventually or should have prepared for the worse until it was guaranteed

exactly.  People acting like all their loans are just going to magically disappear. 

[If U Seek Amy]

1 hour ago, spree said:

exactly.  People acting like all their loans are just going to magically disappear. 

I don't get it. Like I GLADLY will take my loans being wiped. But that is currently not in the realm of realism and not something that is something I can reasonably rely on. So I am going to keep paying them off and fighting my best to improve my life. Not just accept my lowly position in life and give up and ***** online day in and out. And it has been improving slowly but surely. I mean it feels like a long time and it is. But realistically I am still very young and when it is done I will still in theory with a normal life expectancy have a ton of time in life without it

[byzantium]

7 hours ago, Communion said:

What exactly do you think the economic impact will be of forcing 40 million Americans to make payments they haven't made in 4 years on an economy only just now recovering? Do wages continue to grow when people suddenly stop spending en masse?

Yah, the federal and state governments should preempt local zoning laws that make buildings illegal to add

[Archetype]

15 hours ago, Tropez said:

Inflation is higher now than it was before the pandemic. Wages also have not kept up with the price of inflation. So no, this isn’t good news. Because once those resume the spending power of people will actually decrease compared to before 2020. 

 

15 hours ago, Communion said:

What exactly do you think the economic impact will be of forcing 40 million Americans to make payments they haven't made in 4 years on an economy only just now recovering? Do wages continue to grow when people suddenly stop spending en masse?

People have been paying their student loans for decades while inflation outpaced wages, during recessions and economic hardships, etc, and it will only continue to get worse throughout our lives.  This is not special or new.  That doesn’t change the fact that wages rising and inflation stalling right now is objectively good news for a majority of the 330+ million Americans regardless of if they have loans or not.  

[Communion]

7 minutes ago, Archetype said:

People have been paying their student loans for decades 

Again, I don't know how to make this any clearer for you - it is simply an objective fact that turning on student debt payments is going to have a ravenous impact in the economy in 3-4 months time. This is just an objective fact. Imagine if 40 Million Americans suddenly had multi-hundred dollar credit card bills that they didn't originally have.

 

It's literally simple math. The economy is thriving due to a healthy flow of cash occurring. Come October, a significant portion of that cash is going to stop flowing. And this is going to hurt the economy and commerce at large - yes, for all 330+ Americans, whether they have loans or not.

 

Your emotional desire to push a partisan defense for Joe Biden won't change how basic economics works. The upcoming end to the student debt pause is going to roll back significant portions of the current economic recovery being experienced. Screaming to the sky won't change how that works. 

Edited July 13, 2023 by Communion

[Communion]

11 hours ago, If U Seek Amy said:

A recession is a decline in GDP for 2 consecutive quarters

Serving the KHive people on Twitter spending months going "YES, PEOPLE CAN'T AFFORD GROCERIES OR GAS AND EVICTIONS ARE SOARING DUE TO THE END OF THE RENT MORATORIUM, BUT IT'S NOT TECHNICALLY A RECESSION!!"

 

Just a completely toothless, nonsensical lack of understanding about the economic suffering of the average American.  People like you are why people like Trump so easily win elections. And it's made worse knowing that people from such privileged backgrounds and thinking are who make up 95% of those staffed across D.C. in the ears of our elected officials.

Edited July 13, 2023 by Communion

[Distantconstellation]

Means nothing if the average American is still struggling

[Domination]

17 hours ago, If U Seek Amy said:

Yes it does. I literally majored in Finance/Economics and work in it lmao. A recession is a decline in GDP for 2 consecutive quarters. That money not going towards the economy is where a loss in GDP occurs (and if you want to get technical paying student loans does contribute to GDP but let's pretend it doesn't for the sake of argument). And my estimate is generous and maximized. Professional analysts think only 70 billion per year will be lost a year (or 17.5 billion a quarter if broken down equally). That is sooooo small big picture in the US per prior noted numbers. The US can make that up in the blink of an eye. So quite literally even if you argue it will trigger a recession, it is extremely unlikely to do so and there is TONS of info about how little of an impact this will have. I know many farther left talking points many live in emphasize this to the extreme so it seems that way, but that is not true at all. 

 

 Please feel free to explain in detail then why we would enter a recession otherwise? 

 

But I assume you aren't quite literally referring to a recession in the traditional sense of GDP. I am guessing you are referring to more people struggling in the US because of the resumed payments. Which yes, many absolutely will struggle sadly. But that comes back to my other point. You knew this likely was not going to be wiped in these conditions and had years and years. While if you quite literally can't do more than pay bills I understand. But if you weren't living paycheck to paycheck and living frivolously or going into more debt for things like concerts or vacations or personal expenditures that is on you sadly. It isn't fair and isn't right, but that is reality. And even that aside during that time many did not lose their job and had opportunities for advancements and the labor market for many industries is very strong right now and you can negotiate way higher salaries if you try. I literally made a lateral move at work and negotiated $13K more/year just because many industries are so desperate right now. I get that isn't literally everyone though. But with some effort it is possible and tons of jobs are open. So if you haven't taken action, it is time to stop complaining and focus on what you can control and do to help yourself. The government should do more to help people and make things better and right. But until then we need to work with what we can

 

I don't think this doesn't give anyone a right to complain and it absolutely is wrong. The loans should be forgiven 100%. But at the end of the day, you can choose to do nothing and complain or take action and do what you can to try to get over it/better your life. But don't live in some delusion student loans being resumed is going to wreck the economy. The government isn't going to just willingly let themselves fall apart so stupidly as stupid as they are sometimes. 

The average American’s savings is wiped out, credit card debit debt skyrocketing, and now for a substantial portion of them they’ll owe on average another $500 a month? Prices are still insanely high and it’s naive to think that mass layoffs are over. Smaller business are going to begin to close over the next year and prices are still at an all time high even if the rate at which they’re increasing is back to normal.

[Sannie]

On 7/13/2023 at 7:39 AM, Distantconstellation said:

Means nothing if the average American is still struggling

No, economic growth absolutely means something. What this shows us is that Americans are struggling because companies are being greedy. But too many people are obsessed with blaming the gov't and not companies so companies get away with it.