2 ms·
Isn't it more important who gets the money and how the money is spent? Like if you create a trillion dollars but it goes to a single person who is incapable of
by pharke 5y ago
Isn't it more important who gets the money and how the money is spent? Like if you create a trillion dollars but it goes to a single person who is incapable of spending it all so most of it winds up in high priced assets or investments vs. creating a trillion dollars and splitting it evenly among the entire population where it would wind up being spent on a wide variety of goods and services. In my mind, inflation is like bidding at an auction, the more people that participate and the more money they each have, the higher the prices will trend since they will attempt to outbid each other for the limited supply of goods. We saw this effect during the pandemic when spending shifted away from restaurants, entertainment and vacations to home improvements and home gyms for example. The prices at hardware and fitness stores went through the roof because there were suddenly more dollars and a big pool of people buying the same things.