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I really don’t get this argument at all. The USA introduced all this extra cash via fiscal policy. We spent that extra money, but supply didn’t increase. We sa
by brad0 4y ago
I really don’t get this argument at all. The USA introduced all this extra cash via fiscal policy. We spent that extra money, but supply didn’t increase.
We saw increases in products such as lumber, delays in deliveries, and other things. These are all indicators to show increased demand without increased supply.
If companies are selling goods and services, and more money is chasing those goods and services, why wouldn’t companies make record profits?
Here’s the kicker, these companies have made record profits from a number perspective, but the currency is devalued. So in Real value, these companies have made much less profit than they think.
- cyanydeez 4y agoAll that cash started in 2008. You're telling me after a decade and half that suddenly this free money matters? No, what happened was corporations saw $2000 subsidy checks floating around and knew they could squeeze. Sure it was gentle at first, but the difference now than other times is just how few competitors there are and just how easy it is to price match your opponent. The free money has been flowing long before this, the only difference was whose pocket was ripe for picking.
- autoexec 4y ago> No, what happened was corporations saw $2000 subsidy checks floating around and knew they could squeeze.