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It is absolutely a primary cause. Adding more demand worsens supply side issues.
by Axien 4y ago
It is absolutely a primary cause. Adding more demand worsens supply side issues.
- socialismisok 4y agoIf it results in demand. Not all spending by the government leads to demand. I see people blaming student loan forgiveness, for example, and like... No one has redeemed that yet and it's not clear how much that will even have an immediate effect. If someone keeps paying off their loans at the same rate they were, they won't have increased demand right away. Likewise, if people increase their savings or pay down other debts, demand isn't increased right away. It's just not as simple to draw a line to specific government spending and say "that caused inflation".