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The “stimulous” checks increase demand for goods, not services, which, combined with supply chain issues drives inflation. When you get that “free” money, peopl
by redm 5y ago
The “stimulous” checks increase demand for goods, not services, which, combined with supply chain issues drives inflation. When you get that “free” money, people are buying that new tv they have wanted and not thinking about a haircut. Credit card debt is also falling rapidly.
- mbg721 5y agoMaybe not a haircut, but at least anecdotally there's more demand for services like home repairs. People have been home all the time to be annoyed by whatever's broken, and they don't have to take a whole day off work to meet the repair person.
- redm 5y agoThere is more demand for homes and home improvements, but again, thats what's driving goods, like lumber, cement, etc. I would argue those are as much goods as services.
- dragonwriter 5y agolumber and cement are goods. The contractor I pay to convert them into home improvements is a service. Stimulus checks increase demand for both.
- dragonwriter 5y ago> The “stimulous” checks increase demand for goods, not services It increases both; consumers receiving them but both goods and services, after all.