> If the average person is getting any of that it should cause inflation, shouldn't it? That seems to be roughly correct. And yet, we are not seeing inflation.

> If the average person is getting any of that it should cause inflation, shouldn't it? That seems to be roughly correct. And yet, we are not seeing inflation. The conclusion seems easy to me (perhaps too easy). The average person is not seeing much of that money being printed. Instead, all of that money seems to be causing massive inflation in the stock market. The S&P500 and other similar indexes are incredibly high. This is not caused by their expected cash flows growing. Instead, it is is caused by the expected returns of other money falling. Hence the expected 'time discounted cash flows' are increasing, simply because the discount rate is falling. Or, in simpler terms, stocks prices are rising because people with a lot of money to spare need to put that money somewhere. And these people are getting a lot of extra money. This effect is not a total waste. It should mean it becomes easier for new ventures to raise money on the markets. This could enable the creation of new businesses and innovation. However, it could be a lot more effective to give this money to people who would do more with it than try and find a place to store it where they can still make some money of off it.