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Wrong and wrong. This is transitory in the sense that the biggest helicopter drops have already occurred, savings are already dwindling in the bottom 20%, and C

Wrong and wrong. This is transitory in the sense that the biggest helicopter drops have already occurred, savings are already dwindling in the bottom 20%, and CC debt is beginning to rise again. I'd also argue that this was not irresponsible spending. We'd have had a near economic depression when we shut down for COVID were it not for this money printing, instead we have some inflation...which is still magnitudes away from what is reasonably called hyperinflation. The poor and middle classes have had stagnant wages and salaries for decades, and our inflation has been *too low* limiting growth and burdening debt holders, which most are with student loans. We've just witnessed a large transfer of wealth to the lower and middle classes, and the economy is booming. Transitory inflation will be seen until production increases. As you know, supply shortages can be overcome by increasing production and we do not have major wars disrupting production capacity. All this hysteria over moderate inflation is being stoked by those that have been rent seekers sitting on their wealth, enjoying that the value of their lent money barely decreases. edit: We've had higher inflation just for a few months and to those saying that its now clear it isn't transitory, 'Transitory' for an economy is a year, at the minimum, not several months.

UncleOxidant 5y ago
Agreed. It's way too early to say that this inflation is not transitory. Check back in a year and if it's still at this level then it's not transitory, but for now it's too early to make that call.
- willcipriano 5y ago
  It's not too early to call it transitory, but it's too early to call it not transitory? Why does the counter view have a higher standard of evidence?
  - dionian 5y ago
    Everything is transitory, the earth will explode at some point and I'm sure the US dollar won't be around by then.
  - UncleOxidant 5y ago
    There wasn't inflation (outside of housing perhaps) prior to the pandemic event. Then the event hits which perturbed the system and led to monetary and fiscal responses. We saw some deflation early in the event (remember those low oil prices in May/June of 2020?) and now we've been seeing inflation for about 6 months. We're still too soon after the perturbation to know for sure if this isn't just ringing in the system.
boc 5y ago
Thank you. Covid-era policy was choosing between bad and worse outcomes. The Fed and both the Trump+Biden administrations correctly learned the lessons from 2008 and decided that we could handle a year or two of inflation in exchange for avoiding a 10+ year sluggish recovery from a recession. I'd take higher consumer prices while supply comes back online 10 times out of 10 over a prolonged economic downturn.
bluetomcat 5y ago
> We've just witnessed a large transfer of wealth to the lower and middle classes, and the economy is booming. Nonsense. The wealthy have a diversified portfolio of assets, not just money in a bank account. Most of these assets are at least hedged against inflation, if not appreciating over time. The lower and middle classes then take debt to buy some of these assets from the rich.
djrogers 5y ago
> the biggest helicopter drops have already occurred I call bunk. The majority of the money in the record breaking spending bills of the past 18 months hasn't been spent yet.
listless 5y ago
> All this hysteria over moderate inflation is being stoked by those that have been rent seekers sitting on their wealth, enjoying that the value of their lent money barely decreases. Inflation doesn't really affect the wealthy, though. The people at the bottom are the ones who don't have 7% margin in their budget. Blaming this on the hysteria of rich people is to overlook the plight of the margin.
rank0 5y ago
Inflation actually disproportionately affects the poor. They don’t have assets which scale with inflation like property, equities, or bonds. Meanwhile their rent and basic cost of living increases and wages don’t always increase to compensate. As property and wealth building assets appreciate, the lower class has an even larger barrier to financial independence. The goal here for congress and the fed seems to be propping up the insanely overheated markets rather than assisting the poor. Kicking the can down the road isn’t a good long term strategy and we’ve been running on empty since ‘08.
Der_Einzige 5y ago
This is correct - and it's sad at how far I had to scroll to see a comment like this.

UncleOxidant 5y ago

Agreed. It's way too early to say that this inflation is not transitory. Check back in a year and if it's still at this level then it's not transitory, but for now it's too early to make that call.

willcipriano 5y ago
It's not too early to call it transitory, but it's too early to call it not transitory? Why does the counter view have a higher standard of evidence?
- dionian 5y ago
  Everything is transitory, the earth will explode at some point and I'm sure the US dollar won't be around by then.
- UncleOxidant 5y ago
  There wasn't inflation (outside of housing perhaps) prior to the pandemic event. Then the event hits which perturbed the system and led to monetary and fiscal responses. We saw some deflation early in the event (remember those low oil prices in May/June of 2020?) and now we've been seeing inflation for about 6 months. We're still too soon after the perturbation to know for sure if this isn't just ringing in the system.

boc 5y ago

Thank you. Covid-era policy was choosing between bad and worse outcomes. The Fed and both the Trump+Biden administrations correctly learned the lessons from 2008 and decided that we could handle a year or two of inflation in exchange for avoiding a 10+ year sluggish recovery from a recession. I'd take higher consumer prices while supply comes back online 10 times out of 10 over a prolonged economic downturn.

bluetomcat 5y ago

> We've just witnessed a large transfer of wealth to the lower and middle classes, and the economy is booming. Nonsense. The wealthy have a diversified portfolio of assets, not just money in a bank account. Most of these assets are at least hedged against inflation, if not appreciating over time. The lower and middle classes then take debt to buy some of these assets from the rich.

djrogers 5y ago

> the biggest helicopter drops have already occurred I call bunk. The majority of the money in the record breaking spending bills of the past 18 months hasn't been spent yet.

listless 5y ago

> All this hysteria over moderate inflation is being stoked by those that have been rent seekers sitting on their wealth, enjoying that the value of their lent money barely decreases. Inflation doesn't really affect the wealthy, though. The people at the bottom are the ones who don't have 7% margin in their budget. Blaming this on the hysteria of rich people is to overlook the plight of the margin.

rank0 5y ago

Inflation actually disproportionately affects the poor. They don’t have assets which scale with inflation like property, equities, or bonds. Meanwhile their rent and basic cost of living increases and wages don’t always increase to compensate. As property and wealth building assets appreciate, the lower class has an even larger barrier to financial independence. The goal here for congress and the fed seems to be propping up the insanely overheated markets rather than assisting the poor. Kicking the can down the road isn’t a good long term strategy and we’ve been running on empty since ‘08.

Der_Einzige 5y ago

This is correct - and it's sad at how far I had to scroll to see a comment like this.