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Energy prices being high are only a small part of it. Unfettered stimulus, even when we didn’t need it (eg rent payment moratoriums and stimmy checks while at f

Energy prices being high are only a small part of it. Unfettered stimulus, even when we didn’t need it (eg rent payment moratoriums and stimmy checks while at full employment), is what’s driving it.

mikeg8 4y ago
The largest portion of "unfettered stimulus" went to private companies in PPP loans... but that's rarely brought up, which I always find interesting.
- 650REDHAIR 4y ago
  Every once in awhile I look up PPP loans of companies I know didn’t suffer any Covid-relates downturn (some even thrived) and am never surprised to see fat checks fully forgiven. Must be the greatest theft in US history.
  - jackcosgrove 4y ago
    > Must be the greatest theft in US history. In nominal terms it was.
gen220 4y ago
The way I phrased it made it sound like energy prices were the only component, my bad. Yes, stimulus is a contributing factor. But I don’t think it’s the primary contributing factor, it depends on the sector. The price of oil affects the price of food, heavy things, etc much more than stimulus checks. I’m not saying stimulus has no impact on prices, but I think it’s erroneous to say it’s the “driving force” of 8% YOY inflation — maybe it’s the driving force of 2 or 3% of that? The price of gasoline is very underrated as an influence on prices generally: the cost of transport is the backbone of our globalized economy. On the flip side, partially thanks to direct stimulus checks, child credits, etc, median household savings are at an inflation-adjusted high watermark, and the debt:income ratios are also in a decent spot so the median American is better prepared for this recession than previous ones.
heyitsguay 4y ago
Then why is inflation so high globally, not just in the US?
astrange 4y ago
That got us an instant recovery, which is much better than 2008 when we went too small and everyone under 40 lost their chance to own a house.

mikeg8 4y ago

The largest portion of "unfettered stimulus" went to private companies in PPP loans... but that's rarely brought up, which I always find interesting.

650REDHAIR 4y ago
Every once in awhile I look up PPP loans of companies I know didn’t suffer any Covid-relates downturn (some even thrived) and am never surprised to see fat checks fully forgiven. Must be the greatest theft in US history.
- jackcosgrove 4y ago
  > Must be the greatest theft in US history. In nominal terms it was.

gen220 4y ago

The way I phrased it made it sound like energy prices were the only component, my bad. Yes, stimulus is a contributing factor. But I don’t think it’s the primary contributing factor, it depends on the sector. The price of oil affects the price of food, heavy things, etc much more than stimulus checks. I’m not saying stimulus has no impact on prices, but I think it’s erroneous to say it’s the “driving force” of 8% YOY inflation — maybe it’s the driving force of 2 or 3% of that? The price of gasoline is very underrated as an influence on prices generally: the cost of transport is the backbone of our globalized economy. On the flip side, partially thanks to direct stimulus checks, child credits, etc, median household savings are at an inflation-adjusted high watermark, and the debt:income ratios are also in a decent spot so the median American is better prepared for this recession than previous ones.

heyitsguay 4y ago

Then why is inflation so high globally, not just in the US?

astrange 4y ago

That got us an instant recovery, which is much better than 2008 when we went too small and everyone under 40 lost their chance to own a house.