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I suspect inflation will catch up soon enough. I suspect that's actually the major effect. We dumped a ton of money into the economy. I'm not sure how much we c
by gibba999 5y ago
I suspect inflation will catch up soon enough. I suspect that's actually the major effect. We dumped a ton of money into the economy. I'm not sure how much we can take out without tanking the economy.
My general feeling is that if we hit 50% inflation due to COVID19, we're about right. Economists would disagree with me, but I think the alternative is a deep structural wound to our economy.
- kazen44 5y agohow long can we continue like this though? In the end, a shock inflation will be even more disasterous as it will wipe everyone's savings. Also, either way, at some point the system will reach a point in which affording basic needs becomes more and more of a problem, especially if wages are not raised. The US had a stagnat minimum wage for nearly two decades.
- gibba999 5y agoWith bleeding inflation, and an ongoing pandemic seemingly forever? I'm not sure. My estimate was that 50% inflation as a one-time is about what it would take to: - Take drastic actions to bring the pandemic under control - Not drive debt-loaded businesses under - Not drive people out of mortgages This was at the very start of the pandemic. It's harmful, but I still haven't figured out a lower-harm alternative. The longer we delay, the more costs wrack up. I suspect at some point, the above will be too expensive too. Also: Inflation means everything goes up, including wages. We're seeing that right now. Both savings and debts get wiped out.