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> . People were generally flush with money I have a very hard time believing that most people in the US simply have too much money. I suspect that most people
by autoexec 4y ago
> . People were generally flush with money
I have a very hard time believing that most people in the US simply have too much money. I suspect that most people are struggling, and were struggling even before the pandemic and that people's standard of living is declining, their debit is climbing, and they are just a few missed paychecks away from disaster.
I think that as the pandemic situation improved, people were simply desperate for a sense of normalcy and for the things they'd gone without and they spent more than they could afford, even going farther into debt.
It wasn't "but it is a few extra bucks I can afford right now, and things will eventually calm down" it was "this is more than I can afford, but I need it, and I deserve it, and the world is burning anyway so fuck it". I think to a lesser extent that mentality is still going on, but people are suffering heavily under the increased costs of rent, food, and everything else. Evictions and bankruptcies are increasing and homelessness is rising (https://www.huduser.gov/portal/sites/default/files/pdf/2022-AHAR-Part-1.pdf https://www.huduser.gov/portal/sites/default/files/pdf/2022-...) and has been for years.
I can't say to what extent greed is the cause of inflation, but I'm pretty confident it's a bigger factor than how much money most Americans are comfortably sitting on.
- celeritascelery 4y agoThe federal reserve created 20% of all money ever created in the first year of the pandemic [1][2]. Which is absolutely mind blowing to me. The total cost of Covid stimulus was over 5 trillion dollars. That doesn’t mean all individuals are well off, but there is no doubt that the economy is flush with extra cash. And since the number of physical goods had not changed, that meant inflation. Which honestly nullified any advantage people got from stimulus (which were temporary). [1] https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were-created-this-year/ https://www.cityam.com/almost-a-fifth-of-all-us-dollars-were... [2] https://fred.stlouisfed.org/series/WM1NS https://fred.stlouisfed.org/series/WM1NS
- balderdash 4y agoI’m not saying it was evenly spread around, but household net worth increased ~40% between Q4’19 and Q4’21 - that creates a lot of headroom to absorb price increases… https://fred.stlouisfed.org/graph/?g=FBGH# https://fred.stlouisfed.org/graph/?g=FBGH#