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I don't disagree with anything that you are saying. The parent topic is about inflation, and throughout the least 13 years, inflation has not been a problem unt
by fosk 4y ago
I don't disagree with anything that you are saying. The parent topic is about inflation, and throughout the least 13 years, inflation has not been a problem until - in my opinion - faulty fiscal policy during Covid.
In other words, had both monetary and fiscal policy stayed the same, inflation would not have happened to the extent we are dealing with right now. But fiscal policy (government handouts) was extremely liberal after Covid, and that put us out of balance.
- rqtwteye 4y ago"and throughout the least 13 years, inflation has not been a problem until - in my opinion - faulty fiscal policy during Covid." It was a problem for a lot of people who either got priced out of the housing market or have huge student loans or have huge healthcare bills. The price of eggs or gas is really not much of a problem when the price of these big ticket items shoots up.
- fosk 4y ago> It was a problem for a lot of people who either got priced out of the housing market or have huge student loans.. It may have been, but that was not reflected in the CPI, and we are talking about inflation as it is officially recorded in the CPI reports. The CPI inflation didn't spike up until early 2021.
- lumost 4y agoThe point is that many asset poor Americans saw the inflation as moderately beneficial due to higher wages. These higher wages made homes appear more affordable. The CPI measure underestimates inflation for individuals who need to acquire assets like homes.