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What nobody is addressing is that it got a lot more expensive to live. People are trying to keep up with inflation.
by gutitout 5y ago
What nobody is addressing is that it got a lot more expensive to live. People are trying to keep up with inflation.
- dboreham 5y agoBecause everyone was given free money which they spent on things, driving prices up.
- ekidd 5y agoIs increased buying power the actual cause of inflation? Or is it disruption in China? Or is it executives choosing to take profits because they can (for some particular reason)? What evidence could be used to distinguish between the various possibilities? I don't actually know, and I'm curious.
- yobbo 5y agoOne such metric would be Chinese export volumes, in ships and containers. Apparently container ports are clogged in USA.
- TearsInTheRain 5y agoIm sure its a multitude of factors but it is definitely the increase spending due to government intervention. Aggregate demand is several years above trend.
- standardUser 5y agoMoney supply has not been shown to increase inflation in recent decades. Supply chain issues have.
- mockingbirdy 5y agoWould love to read more about this because my understanding is that the increase in M2 money supply is a big part of the current inflation (very simplified - it's way more complex when looking at money velocity and supply chains in general).
- azth 5y agoExactly. It's obvious how printing money out of thin air induces inflation.
- irishjohnnie 5y agoCurrent inflation is mostly supply-side driven. Having said that, M2's biggest jump in its history was in early 2020 (see https://fred.stlouisfed.org/series/M2SL https://fred.stlouisfed.org/series/M2SL). Its slope before and after is more or less the same. However, I don't think inflation will lag it by more than a year.
- keyboardCowBoy 5y agoMy rent went up $300 a month...is that supply-side driven?
- azth 5y agoThe last year proves this wrong.