BufferUnderpants t1_j1aqaae wrote
Reply to comment by mrpoops in Leaked internal document shows Amazon expects a soft landing for the US economy and little chance of a recession, a rosier outlook than many other forecasters by Sorin61
Man this is weird, you really think the US can superpower its way out of basic economics and that there's some stab-in-the-back kind of situation that caused inflation in the way economists would say caused inflation in any case.
Also it wasn't Government spending, it was expansion of money supply, different things, if it was taxes or reserves spent on public works it'd look completely different.
mrpoops t1_j1au0as wrote
Printing a trillion dollars and handing it out like candy isn’t nearly enough to cause 10% inflation in a country with a 21 trillion dollar economy.
The GDP stayed roughly the same during the pandemic as it had been previously, so productivity and economic activity didn’t really change that much and aren’t factors either.
Now, a war in Europe and global pandemic supply chain issues after the largest market crash in history? That might do it…
BufferUnderpants t1_j1avy9v wrote
> Printing a trillion dollars and handing it out like candy isn’t nearly enough to cause 10% inflation in a country with a 21 trillion dollar economy.
How do you reach that conclusion? I'm not sure it's 1-to-1 extra cash on hand and GDP.
Also, don't get me wrong, supply issues are part of the equation, which is also why lockdowns+aid was going to be a double whammy, but it only adds up. Again, I think this was the right choice, but dude, didn't your politicians warn you?
I've seen estimates of the war in Europe adding 1.5% percent points of inflation
It's a combination of internal and external factors, but pumping a trillion dollars into a halted economy is an important one, supply chains would have had trouble keeping up with the demand even with things rolling as usual.
mrpoops t1_j1b4zbb wrote
https://cdn.factcheck.org/UploadedFiles/12-month-percentage-chan.png
Russia was the gas station for Europe and a big chunk of Asia. When fuel prices go up it’s more expensive to do everything.
I’m not exactly sure how a couple 1400 checks to everyone 2 years ago would keep inflation at 10%…
If you flood the economy with free cash and it’s causing inflation there would need to be a corresponding increase in consumer spending.
That didn’t happen.
BufferUnderpants t1_j1b6y4o wrote
Alright dude, whatever, you win, there's alternative facts and theories that the establishment keeps secret from everyone as to why inflation happens.
mrpoops t1_j1b7zbo wrote
It’s not complicated. The US sending out $1400 checks 2 years ago didn’t create inflation in other places, like Europe.
A global market collapse, (mostly Chinese) supply chain issues and a war in Europe that’s still happening are way more obvious answers….
I dunno what to tell ya. Economists are biased and say whatever matches their worldview. Bottom line is there needs to be a mechanism for this stuff…and giving a couple grand to people years ago now isn’t gonna cause 10% inflation now, across the entire western world…
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