{"id":1115658,"date":"2021-12-13T18:29:24","date_gmt":"2021-12-13T23:29:24","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1115658"},"modified":"2021-12-13T18:29:26","modified_gmt":"2021-12-13T23:29:26","slug":"bloomberg-article-advises-americans-to-spend-their-paychecks-quickly-take-out-loans-to-deal-with-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bloomberg-article-advises-americans-to-spend-their-paychecks-quickly-take-out-loans-to-deal-with-inflation\/","title":{"rendered":"Bloomberg Article Advises Americans To Spend Their Paychecks Quickly, Take Out Loans To Deal With Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbloomberg-article-advises-americans-to-spend-their-paychecks-quickly-take-out-loans-to-deal-with-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1115658&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Bloomberg News drew fierce criticism for suggesting that Americans spend their paychecks quickly, purchase expensive items like homes and cars, and take out loans to pay for them, as means of coping with skyrocketing inflation.<\/p>\n<p>The article, titled \u201c<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-12-11\/the-inflation-pros-from-argentina-offer-tips-for-rattled-americans?utm_medium=social&amp;utm_source=twitter&amp;cmpid=socialflow-twitter-business&amp;utm_campaign=socialflow-organic&amp;utm_content=business\">For Americans Shocked by Inflation, Argentines Have Some Advice<\/a>,\u201d cites the nation of Argentina, whose annual inflation rate is typically about 50%, and suggests that Americans copy the strategies used by average Argentinians to cope with inflation in the U.S., which has risen to a <a href=\"https:\/\/www.dailywire.com\/news\/breaking-inflation-skyrockets-to-6-8-higher-than-expected-fastest-rate-in-nearly-40-years\">nearly 40-year high at 6.8%<\/a>.<\/p>\n<p>\u201cFor many Americans, the sudden burst of inflation that has rocked the economy has been disorienting,\u201d the article, written by Patrick Gillespie and Ignacio Olivera Doll, begins. \u201cConsumer prices had been so stable for so long in the U.S. that the population finds itself a little rusty on basic inflationary-era tactics. So for some advice, we turned to people who have become experts in the art of surviving runaway inflation: Argentines.\u201d<\/p>\n<p>\u201cWalk around Buenos Aires and you\u2019ll hear conversations \u2014 between 18-year-old college students, 90-year-old retirees and everyone in between \u2014 about currency exchange rates, soaring prices and strategies for coping.\u201d<\/p>\n<p>\u201cOf course, the 50% inflation they deal with in a typical year in Argentina \u2014 the product of decades of policy missteps that have destroyed confidence in the central bank \u2014 is far higher than the 6.8% rate that Americans are enduring. But many of the principles that shape the day-to-day habits of Argentine workers, consumers and savers are still broadly applicable in the U.S. today.\u201d<\/p>\n<p>The first strategy the article suggests is that Americans spend their paychecks quickly. In Argentina\u2019s high-inflation economy, where money sitting in the bank rapidly loses value, consumers spend their paychecks on the things they need right away, purchasing weeks\u2019 worth of food at grocery stores, even if most of it will sit in the freezer for weeks, Gillespie and Doll write. The authors do not go as far as to suggest that Americans go to the grocery store and begin hoarding their essentials, but they should \u201cexpedite plans to buy big-ticket items \u2014 appliances, bicycles, furniture.\u201d<\/p>\n<p>\u201cIf you have the money to pay for that sofa now, do it,\u201d the authors argue.<\/p>\n<p>The article goes on to suggest that Americans not hesitate to take out loans to make those big-ticket purchases. \u201cIf you can get a loan at a rate below inflation \u2014 something that\u2019s possible for many Americans today \u2014 go for it. Inflation will make it easier to repay the loan in coming months and years,\u201d the article reads.<\/p>\n<p>Next, the article suggests that Americans seek pay raises. American\u2019s <a href=\"https:\/\/www.dailywire.com\/news\/as-inflation-soars-americans-real-wages-decline\">real wages are declining<\/a> due to inflation, as The Daily Wire previously reported and as the authors note, but their solution is simply to negotiate a wage increase.<\/p>\n<p>\u201cArgentina\u2019s labor unions and companies negotiate annual pay raises for workers that factor in expected inflation. When prices rise more than anticipated, those agreements often get ripped up, and the two sides go back to the negotiating table to iron out new terms. It\u2019s a powerful tool that American workers can take inspiration from, albeit one that would create angst for policy makers trying to prevent a wage-price spiral,\u201d the article says.<\/p>\n<p>The article also suggests that consumers buy cars and real estate, as well as inflation-linked bonds, to hedge their money against inflation.<\/p>\n<p>The piece was lambasted by conservatives on Twitter.<\/p>\n<p dir=\"ltr\" lang=\"en\">Bloomberg next week \u2013<\/p>\n<p>\u201cSome of the advice on how to cope with rising inflation includes: Stop using cash and switch to bartering.\u201d <a href=\"https:\/\/t.co\/TJXPyGhMZt\">https:\/\/t.co\/TJXPyGhMZt<\/a><\/p>\n<p>\u2014 Omri Ceren (@omriceren) <a href=\"https:\/\/twitter.com\/omriceren\/status\/1470145756325634055?ref_src=twsrc%5Etfw\">December 12, 2021<\/a><\/p>\n<p dir=\"ltr\" lang=\"en\">Lol. The implication that the paycheck isn\u2019t spent before it\u2019s even deposited is flattering, but, yeah, no prob guys. <a href=\"https:\/\/t.co\/ULmqDbREXM\">https:\/\/t.co\/ULmqDbREXM<\/a><\/p>\n<p>\u2014 Caleb Howe (@CalebHowe) <a href=\"https:\/\/twitter.com\/CalebHowe\/status\/1470449088634183683?ref_src=twsrc%5Etfw\">December 13, 2021<\/a><\/p>\n<p dir=\"ltr\" lang=\"en\">\u201cYou will own nothing and you will be happy\u201d <a href=\"https:\/\/t.co\/USdiv5zdQ0\">https:\/\/t.co\/USdiv5zdQ0<\/a><\/p>\n<p>\u2014 Carol Roth (@caroljsroth) <a href=\"https:\/\/twitter.com\/caroljsroth\/status\/1470137657997070351?ref_src=twsrc%5Etfw\">December 12, 2021<\/a><\/p>\n<p dir=\"ltr\" lang=\"en\">ffs Argentina\u2019s annual inflation rate is often 50%. US today at 6%. but sure <a href=\"https:\/\/twitter.com\/business?ref_src=twsrc%5Etfw\">@business<\/a> let\u2019s pretend they\u2019re similar <a href=\"https:\/\/t.co\/X2D6DqFQW4\">https:\/\/t.co\/X2D6DqFQW4<\/a><\/p>\n<p>\u2014 Eric Boehlert (@EricBoehlert) <a href=\"https:\/\/twitter.com\/EricBoehlert\/status\/1470404989617070084?ref_src=twsrc%5Etfw\">December 13, 2021<\/a><\/p>\n<p dir=\"ltr\" lang=\"en\">Did institutional investors who own trillions in assets write this headline? <a href=\"https:\/\/t.co\/90Ndudv1el\">https:\/\/t.co\/90Ndudv1el<\/a><\/p>\n<p>\u2014 litquidity (@litcapital) <a href=\"https:\/\/twitter.com\/litcapital\/status\/1470152171278770180?ref_src=twsrc%5Etfw\">December 12, 2021<\/a><\/p>\n<p dir=\"ltr\" lang=\"en\">advice: accelerate your downfall. <a href=\"https:\/\/t.co\/E3cah6e1Un\">https:\/\/t.co\/E3cah6e1Un<\/a><\/p>\n<p>\u2014 Logan Hall (@loganclarkhall) <a href=\"https:\/\/twitter.com\/loganclarkhall\/status\/1470146238712590339?ref_src=twsrc%5Etfw\">December 12, 2021<\/a><\/p>\n<p dir=\"ltr\" lang=\"en\">Good God <a href=\"https:\/\/t.co\/nk1ipm3Rsn\">https:\/\/t.co\/nk1ipm3Rsn<\/a><\/p>\n<p>\u2014 Comfortably Smug (@ComfortablySmug) <a href=\"https:\/\/twitter.com\/ComfortablySmug\/status\/1470398559526731782?ref_src=twsrc%5Etfw\">December 13, 2021<\/a><\/p>\n<p>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bloomberg News drew fierce criticism for suggesting that Americans spend their paychecks quickly, purchase expensive items like homes and cars, and take out loans to pay for them, as means of coping with skyrocketing inflation.The article, titled \u201cFor Americans Shocked by Inflation, Argentines Have Some Advice,\u201d cites the nation of Argentina, whose annual inflation rate is typically about 50%, and suggests that Americans copy the strategies used by average Argentinians to cope with inflation in the U.S., which has risen to a nearly 40-year high at 6.8%.\u201cFor many Americans, the sudden burst of inflation that has rocked the economy has been disorienting,\u201d the article, written by Patrick Gillespie and Ignacio Olivera Doll, begins. \u201cConsumer prices had been so stable for so long in the U.S. that the population finds itself a little rusty on basic inflationary-era tactics. So for some advice, we turned to people who have become experts in the art of surviving runaway inflation: Argentines.\u201d\u201cWalk around Buenos Aires and you\u2019ll hear conversations \u2014 between 18-year-old college students, 90-year-old retirees and everyone in between \u2014 about currency exchange rates, soaring prices and strategies for coping.\u201d\u201cOf course, the 50% inflation they deal with in a typical year in Argentina \u2014 the product of decades of policy missteps that have destroyed confidence in the central bank \u2014 is far higher than the 6.8% rate that Americans are enduring. But many of the principles that shape the day-to-day habits of Argentine workers, consumers and savers are still broadly applicable in the U.S. today.\u201dThe first strategy the article suggests is that Americans spend their paychecks quickly. In Argentina\u2019s high-inflation economy, where money sitting in the bank rapidly loses value, consumers spend their paychecks on the things they need right away, purchasing weeks\u2019 worth of food at grocery stores, even if most of it will sit in the freezer for weeks, Gillespie and Doll write. The authors do not go as far as to suggest that Americans go to the grocery store and begin hoarding their essentials, but they should \u201cexpedite plans to buy big-ticket items \u2014 appliances, bicycles, furniture.\u201d\u201cIf you have the money to pay for that sofa now, do it,\u201d the authors argue.The article goes on to suggest that Americans not hesitate to take out loans to make those big-ticket purchases. \u201cIf you can get a loan at a rate below inflation \u2014 something that\u2019s possible for many Americans today \u2014 go for it. Inflation will make it easier to repay the loan in coming months and years,\u201d the article reads.Next, the article suggests that Americans seek pay raises. American\u2019s real wages are declining due to inflation, as The Daily Wire previously reported and as the authors note, but their solution is simply to negotiate a wage increase.\u201cArgentina\u2019s labor unions and companies negotiate annual pay raises for workers that factor in expected inflation. When prices rise more than anticipated, those agreements often get ripped up, and the two sides go back to the negotiating table to iron out new terms. It\u2019s a powerful tool that American workers can take inspiration from, albeit one that would create angst for policy makers trying to prevent a wage-price spiral,\u201d the article says.The article also suggests that consumers buy cars and real estate, as well as inflation-linked bonds, to hedge their money against inflation.The piece was lambasted by conservatives on Twitter.Bloomberg next week \u2013\u201cSome of the advice on how to cope with rising inflation includes: Stop using cash and switch to bartering.\u201d https:\/\/t.co\/TJXPyGhMZt\u2014 Omri Ceren (@omriceren) December 12, 2021Lol. The implication that the paycheck isn\u2019t spent before it\u2019s even deposited is flattering, but, yeah, no prob guys. https:\/\/t.co\/ULmqDbREXM\u2014 Caleb Howe (@CalebHowe) December 13, 2021\u201cYou will own nothing and you will be happy\u201d https:\/\/t.co\/USdiv5zdQ0\u2014 Carol Roth (@caroljsroth) December 12, 2021ffs Argentina\u2019s annual inflation rate is often 50%. US today at 6%. but sure @business let\u2019s pretend they\u2019re similar https:\/\/t.co\/X2D6DqFQW4\u2014 Eric Boehlert (@EricBoehlert) December 13, 2021Did institutional investors who own trillions in assets write this headline? https:\/\/t.co\/90Ndudv1el\u2014 litquidity (@litcapital) December 12, 2021advice: accelerate your downfall. https:\/\/t.co\/E3cah6e1Un\u2014 Logan Hall (@loganclarkhall) December 12, 2021Good God https:\/\/t.co\/nk1ipm3Rsn\u2014 Comfortably Smug (@ComfortablySmug) December 13, 2021The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":189,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1115658","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1115658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/189"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1115658"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1115658\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1115658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1115658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1115658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}