4 ms·

Can someone explain to me how printing more money and handing it to consumers is combatting inflation?

netant 4y ago
combat? yes? win? no
kmos17 4y ago
Not sure this qualifies as printing money, CA cannot issue currency, they will be spending from their budget which is tax payer funded no? Is giving back money going to increase inflation? not sure how much of an impact a $1k payment will have on overall inflation. I would guess a lot less than the existing outside factors including the war in Ukraine and the impact of covid disruption and relief.
- google234123 4y ago
  Inflation will likely cause a recession and you are advocating for something that will make it worse just vecause other people are doing worse things? Also, you are trying hard to brush aside the actions taken by the current government that have fueled this (taking numerous actions to limit domestic fuel production in the name of environmentalism, 8 trillion in debt)…
asdajksah2123 4y ago
1. This isn't printing money. 2. Even if it was printing money, the mechanism by which printing money causes inflation is by making the currency weaker relative to other currencies. The US dollar is stronger than ever, so "printing money" has nothing to do with the inflation we're facing right now. 3. Giving people money can absolutely help combat inflation because it means people can pay for the food/gas/energy that they couldn't otherwise, especially if the inflation is the result of a supply shock, which is what appears to be happening right now. Combating inflation doesn't just mean reducing inflation. It also means helping people navigate the effects of inflation. And giving people additional money helps do the latter.
- horsawlarway 4y ago
  1. Agree - it's coming from California's budget, and the state can't print money. 2. Partially agree - decreasing the value of your own currency is definitely going to drive up the currency amount needed to import goods into the country, but that's hardly the only driver for inflation - it also doesn't touch at all the inflation that's happening for services or real-estate/rents. 3. Pretty hard disagree. In fact - a supply shock is literally the definition of a period where "giving folks more money" is unlikely to do anything other than continue to drive prices higher. All you're doing is increasing the number of dollars available to chase the same limited supply. Price will increase as a result. Will the recipients of the cash influx have better purchasing power? Probably - but only at the expense of every other purchaser interested in the limited supply.
- joelwilliamson 4y ago
  If printing money doesn't cause any net inflation, then what is your theory about what does cause inflation?
quickthrowman 4y ago
California does not control the Federal Reserve Bank, so it cannot print money.

combat? yes? win? no

Not sure this qualifies as printing money, CA cannot issue currency, they will be spending from their budget which is tax payer funded no? Is giving back money going to increase inflation? not sure how much of an impact a $1k payment will have on overall inflation. I would guess a lot less than the existing outside factors including the war in Ukraine and the impact of covid disruption and relief.

google234123 4y ago
Inflation will likely cause a recession and you are advocating for something that will make it worse just vecause other people are doing worse things? Also, you are trying hard to brush aside the actions taken by the current government that have fueled this (taking numerous actions to limit domestic fuel production in the name of environmentalism, 8 trillion in debt)…

asdajksah2123 4y ago

1. This isn't printing money. 2. Even if it was printing money, the mechanism by which printing money causes inflation is by making the currency weaker relative to other currencies. The US dollar is stronger than ever, so "printing money" has nothing to do with the inflation we're facing right now. 3. Giving people money can absolutely help combat inflation because it means people can pay for the food/gas/energy that they couldn't otherwise, especially if the inflation is the result of a supply shock, which is what appears to be happening right now. Combating inflation doesn't just mean reducing inflation. It also means helping people navigate the effects of inflation. And giving people additional money helps do the latter.

horsawlarway 4y ago
1. Agree - it's coming from California's budget, and the state can't print money. 2. Partially agree - decreasing the value of your own currency is definitely going to drive up the currency amount needed to import goods into the country, but that's hardly the only driver for inflation - it also doesn't touch at all the inflation that's happening for services or real-estate/rents. 3. Pretty hard disagree. In fact - a supply shock is literally the definition of a period where "giving folks more money" is unlikely to do anything other than continue to drive prices higher. All you're doing is increasing the number of dollars available to chase the same limited supply. Price will increase as a result. Will the recipients of the cash influx have better purchasing power? Probably - but only at the expense of every other purchaser interested in the limited supply.
joelwilliamson 4y ago
If printing money doesn't cause any net inflation, then what is your theory about what does cause inflation?

quickthrowman 4y ago

California does not control the Federal Reserve Bank, so it cannot print money.