4 ms·

> couple of $1200 checks 100s of millions of checks, amounting to trillions of dollars. This is economics 101 that directly printing the money increases inflat

> couple of $1200 checks 100s of millions of checks, amounting to trillions of dollars. This is economics 101 that directly printing the money increases inflation. These kind of money accumulates in the hands of few and the market had been quick to act on concentrating the $1200 checks.

phreeza 5y ago
I'm not saying it's not due to these stimulus measures, but I think the economics 101 lesson is kind of refuted by a decade of quantitative easing, which did not cause significant consumer price inflation. The specifics of where you point the money spigot matter, it's more subtle than print money == inflation in today's highly complex economy.
- jdhn 5y ago
  This stimulus is different from QE in the sense that it went directly to consumers. QE never went directly to consumers, but instead stayed with banks. Personally, I think you can see QE's inflationary effect in both the stock and housing market, but that's just me.
  - phreeza 5y ago
    Yea I have heard that argument, and I kind of buy it, but to a certain degree it still surprises me that different kinds of inflations can stay compartmentalized for so long. For example I benefited handsomely from the asset inflation in the stock market, and used some of my proceeds for consumer spending. My relatives benefited from inflated housing prices, sold their house and are now living it up in their retirement. Why doesn't more 'leakage' like this take place over a decade?
syshum 5y ago
Not according to our Economic Overlords in the Fed and Treasury who still, even today, believe 100% of the inflation is about supply chain bottle necks, not their irresponsible money printing
- testfoobar 5y ago
  When anti-vaxxers are asked to trust the science and listen to the experts, they are simultaneously being asked to ignore inflation by economists and different experts. How do you convince someone that one group of experts is telling the truth?
  - thepasswordis 5y ago
    Simple: remind them that one group of people are scientists, and the other aren’t. Economics isn’t a hard science. The system is too complex to create theories and test them, so every theory is tested in the production environment of the (usually poor) peoples lives that these things effect. And hey wouldn’t you know: the rich elites who make up the economists who propose these absurd ideas like “velocity of money” also end up being in the same class as the ones who make billions or trillions of dollars off of their economic theories.
deleted 5y ago
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phreeza 5y ago

I'm not saying it's not due to these stimulus measures, but I think the economics 101 lesson is kind of refuted by a decade of quantitative easing, which did not cause significant consumer price inflation. The specifics of where you point the money spigot matter, it's more subtle than print money == inflation in today's highly complex economy.

jdhn 5y ago
This stimulus is different from QE in the sense that it went directly to consumers. QE never went directly to consumers, but instead stayed with banks. Personally, I think you can see QE's inflationary effect in both the stock and housing market, but that's just me.
- phreeza 5y ago
  Yea I have heard that argument, and I kind of buy it, but to a certain degree it still surprises me that different kinds of inflations can stay compartmentalized for so long. For example I benefited handsomely from the asset inflation in the stock market, and used some of my proceeds for consumer spending. My relatives benefited from inflated housing prices, sold their house and are now living it up in their retirement. Why doesn't more 'leakage' like this take place over a decade?

syshum 5y ago

Not according to our Economic Overlords in the Fed and Treasury who still, even today, believe 100% of the inflation is about supply chain bottle necks, not their irresponsible money printing

testfoobar 5y ago
When anti-vaxxers are asked to trust the science and listen to the experts, they are simultaneously being asked to ignore inflation by economists and different experts. How do you convince someone that one group of experts is telling the truth?
- thepasswordis 5y ago
  Simple: remind them that one group of people are scientists, and the other aren’t. Economics isn’t a hard science. The system is too complex to create theories and test them, so every theory is tested in the production environment of the (usually poor) peoples lives that these things effect. And hey wouldn’t you know: the rich elites who make up the economists who propose these absurd ideas like “velocity of money” also end up being in the same class as the ones who make billions or trillions of dollars off of their economic theories.

deleted 5y ago

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