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Cake day: July 5th, 2023

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  • It’s overvalued in my market at the moment, (Dallas) majority of properties sitting on the market for over half a year and making several list price reductions. COVID inflated the market a bit too much and it needs to come down… 10-20% would be a fair amount I’d expect it to drop over 2 years.

    But there are a lot of external factors I’m not considering in my estimate: like idiotic tariffs, incompetent leadership at the state level, and a possible demographic shift depending on how people react to immigration reductions (and possibly net emmigration)… I give a significant chance something out of left field will upend the economy 🤷‍♂️. But who knows when the people in charge change their policies every other day and then insist their new opinion has always been their super secret plan all along…







  • Adding further onto your point emphasizing why this will be severe: Borrowing will become more expensive, and we can’t just stop spending to stop borrowing. Much of the current debt is in short term positions that regularly get re-issued. The cost of issuing new short term debts just to replace the current ones coming due will increase even if spending stays the same (or decreases).

    And of course, there’s a huge impact to the dollar’s value internationally if major financial markets shift away from holding US debt. You know the trade deficit Republicans like to rage about … Yeah, it’ll get a lot worse when fewer people want to hold US dollars for the purpose of investing in US bonds.




  • whyrat@lemmy.worldtoNews@lemmy.worldUS inflation unexpectedly increases
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    3 months ago

    Every Republican presidential term in my lifetime has had a recession start. None of the Democratic ones have…

    Regan; one started each term. First Bush had one in his term. Clinton had none in his 2 terms. Second Bush had a HUGE one each time (dot com and great recession). Obama had none in his 2 terms. trump had one in his first term (triggered by covid & shutdowns; which his (in)actions intensified…). Biden didn’t have one (but; just barely… and only by the official definition [NBER]; he did have two negative real GDP quarters, so one could argue this point). Now we’re starting trump’s second term, so we’ll see (it’s pretty clear we’ll have a recession within 2 years).

    This isn’t really debatable unless you ignore the evidence. Stock market and real GDP growth are overall way higher under Democrat presidents. One link for reference (but many more are available): https://link.springer.com/article/10.1007/s11127-021-00912-y






  • So if the difference is corporate consolidation… Sounds like that’s the real underlying issue then, not automation.

    Economics has well established that monopolistic behavior by firms harms consumers & the overall economy (that’s why we have anti-trust laws in the first place).

    Don’t conflate the one problem with another, as I agree the erosion of anti-trust laws is a bad thing and needs to be reversed. But that doesn’t mean firms further automating things is now also bad.

    I’d also say “automation affecting the whole economy at once” isn’t unique. The industrial revolution was not isolated to one industry, its effects were economy-wide. Also true for the transportation revolution (trains & steam boats moved everything), telecommunications, and the internet…


  • If you’re not aware, look up the automation paradox: https://ideas.ted.com/will-automation-take-away-all-our-jobs/

    Every* automation advancement has lead to an increase in employment, not decrease. Most often jobs in the immediate sector are lost, but the rise in supporting sector jobs are bolstered.

    Classic examples are the cotton mill and combine harvester. The number of agricultural workers declined, but the number of jobs processing agricultural product increased. Or with ATMs, the number of tellers needed per bank location decreased, but the total employment in the banking sector increased (banks opened more branches, namely in places where it was previously cost prohibitive).

    As more things are automated, what’s being automated becomes cheaper and more prolific, often increasing (or creating) new opportunities. There are so many historic examples of this, it’s hard to justify “this time is different” predictions… Even for things like AI automating white collar jobs.

    *Edit: almost every. It depends a bit on how you count the secondary jobs, and where those are located (automation combined with offshoring results in a net decline in some countries, but increase overall).