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>Stop spreading this propaganda This isn't propaganda - it's econ 101. Read any intro econ textbook and all this is completely expected, historically backed up
by SideQuark 4y ago
>Stop spreading this propaganda
This isn't propaganda - it's econ 101. Read any intro econ textbook and all this is completely expected, historically backed up by many events for centuries in hundreds of countries. There's no propaganda.
M1 money (a common measure of the money supply) went from around 4 trillion to over 16 trillion in a matter of months during the pandemic [1] as a result of the govt adding trillions of dollars - a completely unprecedented amount.
Do you really think a govt can simply throw trillions into an economy at this rate and not have inflation?
[1] https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL
- throwaway5959 4y agok let's assume that's the case, what would you propose as the solution to mop up the 12 trillion in excess M1?
- SideQuark 4y agoNothing - you let it run it's course while mitigating inflation with Fed actions. Money will rescale as it's always done, and people will go on their way (as they're doing right now). This is how it's been done the world over, and it works pretty well, despite pop articles creating more panic than is warranted. Money has been added in the past to smooth out the 18th and 19th century boom and bust cycles, and it has worked extremely well compared to past pain. Every country on the planet has chosen central banking since the evidence it's better than the alternatives has been overwhelming for almost a century.