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There are a number of fiscal and monetary mechanisms available to central governments and central banks respectively, which are used to spur economic activity a
by fleetwoodsnack 4y ago
There are a number of fiscal and monetary mechanisms available to central governments and central banks respectively, which are used to spur economic activity and to relieve economic hardship: by directing government spending or by creating monetary liquidity.
The assertion is not so much that poor people cause inflation; rather, that inflationary fiscal and monetary policies are often only recognized as such when they happen to benefit middle-to-lower income people.
Example: PPP Covid programs which pay business owners billions is necessary and proper given the circumstances, but direct payments to taxpayers is not because it will cause inflation.
In truth, they both provide relief, and they both contribute to inflation.