How much money do you think $600 actually is?
People have been going on and on as though $600 was too much inflationary pressure.
You get that that is less then 1 months rent, right?
People have been going on and on as though $600 was too much inflationary pressure.
You get that that is less then 1 months rent, right?
Which doesn't even include forbearances that add a few T more in consumer spending power, or artificially low interest rates driven by the Fed
Here's your inflation: https://fred.stlouisfed.org/series/RSXFS
https://fred.stlouisfed.org/series/PI
Maybe you can clue some of the others into it. Not like we have the internet and easily observable datapoints that makes it quite obvious huh.
Instead have to hear the inane idiocy of economically illiterate people promoting policy that does the opposite of what they want to achieve
The stimulus bumps are quite visible, but subsequent data is right in line.
So apparently taking about personal income was just happenstance, since you pretty obviously were trying to say "it's rising wages that are doing it" and then have been backpedaling everytime I press you to explain why.
So we face successfully established there's inflation, and you've made no argument as to why we should think it's fiscal policy related rather than supply chain - you know, that big thing which has been stressed and suffering shortages repeatedly the last 2.5 years.
Supply of effectively every good is higher than prepandemic. Demand is even higher. Retail sales have exploded vastly above trend due to fiscal injections. This is NOT a supply side issue, this is consumers mass buying which leads to shortages. If it were a supply side issue, you'd see big hits to corporate earnings, instead they became massively inflated due to excess consumer spending.
Personal income is rising much faster than sustainable for 2% inflation. Are you aware that money is nominal? People getting paid more means nothing if prices rise faster than they're getting paid. There's zero inherent value to a dollar.
Inflation is a product of supply and demand, not just one or the other. When there's an imbalance, prices rise to a new equilibrium point.
Go on, cheer for higher nominal wages as consumer sentiment sits at all time lows and real wages are deteriorating faster than any time in history
How can you possibly claim this? Where have you been for the last year? Energy embargos, dramatic slow downs in trade with China, excruciating shortages of basic/fundamental electrical components.
I have to assume that you have ignored all evidence that doesn't support your narrative. The trouble is this inflation would have happened with or without individual stimulus moneys.
600 a week for people on unemployment on top of normal unemployment.
1400 of stimulus checks to a large percentage of Americans.
PPP loans given to business that large weren't paid back
Lots of little stuff that funded stresses institutions.
Stimulus isn't too blame at all for the inflation we are facing, supply chain limits and war are also responsible.
However, to say stimulus was "just 600 dollars" is crazy misrepresentative and totally ignores that the American stimulus package was literally the most robust and impactful examples of stimulus in the world.
It’s just bread and circuses.
No matter how much you take away from those 0.01% of people, it’s not going to do much to fight the inflation of the goods that people are worried about the inflation of.
Let’s take food for example. Perhaps the 0.01% might consume 10x more food than regular people at most (factoring in waste). Even if the 0.01% were to be taxed to the point where they can eat nothing, it’s not going to create very much more supply of food for everyone else.
Then there is fuel. The ultra rich probably do consume a lot more of it when you factor in things like jet flights and such. But even if it’s 100x more, it’s not really freeing up so much to actually affect the market for it.
Now what taxing those guys might do is reduce the price of the goods that they do in fact consume more of. Things like housing where the rich will own a lot in order to generate revenue.
And indeed these productive assets were inflated significantly due to the loose monetary policy regime that we have been living in for some time.
But these are not the resources that most are concerned about with regard to cost of living at the moment. That’s food, fuel, etc.
Because of supply chain issues, it's more money chasing fewer resources. I think people focus too much on the money supply and not enough on supply chain shortages. IMO, the bump in stimulus money given would not have caused this level of inflation without also the decline in supply to go along with it.
$1,200 per adult in April 2020, $500 per child.
$600 per adult in December 2020/January 2021, same per child
$1,400 per adult in March 2021, same per child.
A fully qualified two adult, two child household received $11,400. For a median income of 2x $31k, that’s 9% of the household’s per annum income. If you both had a job during covid, as most people did, it’s pure inflation.
Inflation is measured via a basket of goods measure, and corporations have freely taken all those basics and gone "welp must be circumstance" while posting those profits.
Prices surged before any stimulus was handed out.