Interested in the relation of unemployment and inflation chart to compare the wisdom of who will incur more misery when the Fed raises interest rates in 2022?
The Chicago Tribune – Kiplinger’s article titled: How inflation will affect your taxes, reported how is tax tables are adjusted for inflation so as to not affected wage earns tax backers from 10 – 37 percent.
However, another US News article reports “it is a hodgepodge ” .
An MSN Guardian opinion article titled: The Fed is about to raise interest rates again and shaft American workers, again, stated the following.
There’s no “wage-price spiral” either, even though Fed chief Jerome Powell has expressed concern about wage hikes pushing up prices. To the contrary, workers’ real wages have dropped because of inflation. Even though overall wages have climbed, they’ve failed to keep up with price increases – making most workers worse off in terms of the purchasing power of their dollars.
A chart titled Misery Index Chart links past peaks and valleys of USA inflation.
The Purpose of This Post
Is to relate an ancient wisdom proverb to the issues of misery issues related to unemployment, inflation, taxes and interest in our contemporary times.
“This event took place during the reign of Rehoboam, son of Solomon, approximately two hundred years before Isaiah lived. To finance his massive building projects, Solomon had taxed the people heavily during his reign. Following his death, the ten northern tribes appealed for relief from the heavy tax burden, but Rehoboam refused. The Israelites returned home in rebellious anger. Rehoboam sent the head of that day’s Internal Revenue Service to either collect some overdue revenues or negotiate. The Israelites assassinated him.”
Interest on Debt
“Just as the rich rule the poor, so the borrower is servant to the lender.” (Proverbs 22:7) r
“The Bible doesn’t mince words: Whenever I borrow, I’m setting aside a portion of my future wages to service that debt. In effect, I am working for the lender—the credit card company, the bank and so on—until my debt is paid off. Certainly, some forms of debt can be beneficial. Mortgage debt and student loans come to mind. Still, before borrowing, ask yourself: What future freedoms am I giving up by taking on this debt?”
What’s My Point?
The National Debt now exceeds 30 trillion dollars which means when the government raises interest tats, they are in effect going to have to pay more interest payments to lenders.
This is in effect similar to what occurred when Rehoboam sent the head of his tax collector to collect. Their answer was to cut off his head and the northern providence split the Nation in two from the southern providences.
My point is in our contemporary times, the same persons who led our Nation into debt will by raising interest rates to control inflation are ironically in the same roles as “the rich lenders who rule the poor, so the borrower is servant to the lender”
In My Opinion
Government has to end passing spending Bills and printing money to return to fiscal responsibility in the USA because adding to the National Dept leads to inflation of the dollar and higher taxes in the future.
As for interest rates, it is ironic when we discern that when the Fed raised interest rates, the higher the interest rate, the higher and faster the National Debt will accumulate and the greater will be the need to raise taxes to pay the interest on the National Debt.
Since 80 percent of the lenders of ational Debt Bond buyers are owned by USA citizens, we are in effect adding to our debt in the future when we raise interest rate or in effect “cutting off our own heads.”.
In other words, the misery index factors will grow on the Misery Rate Chart because we voters voted for the leaders who are making decisions to incur debt and ironically enslave the voters who chose them.
Read the articles in the Source Links below
Should our government leaders listen more to the advice of the ancient wiseman instead of repeating the same follies that result from spending and increasing debt and interest rates to reduce the present upward path on the Misery Index Chart in the future.
Regards and goodwill blogging.
Chicago Tribune February 6, 2022 Kiplingers
Marca Inflation and Taxes
MSN Guardian Article