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That 40% did not lead to a 40% increase to the cost of living like you are implying. Cpi went up 8% in 2022, and social security went up 8.7%
by KyleBerezin 3y ago
That 40% did not lead to a 40% increase to the cost of living like you are implying. Cpi went up 8% in 2022, and social security went up 8.7%
- riku_iki 3y agoand there is higher chance that ss will bankrupt slightly earlier.. Also, ss obviously is not the largest source of American's well being, and those other sources (wages) will not be keeping up with inflation.
- KyleBerezin 3y agoThat increase was due to the covid stimulus checks. That isn't the new rate of money supply growth. In fact, the money supply has been decreasing lately. As i understand it (not an expert) the social security surplus (money not yet sent out to recipients) is invested in treasury bonds, so should inflate at the same rate as the dollar.
- riku_iki 3y ago> That increase was due to the covid stimulus checks stimulus checks were like few 100B, very different amount, total stimulus program was 2.2T: https://en.wikipedia.org/wiki/CARES_Act https://en.wikipedia.org/wiki/CARES_Act , while M1 supply increased from 4T to 20T: https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL I think institutions took advantage of low interest rates, borrowed lots of money, and now will borrow/invest with much higher return for next many years. > That isn't the new rate of money supply growth I don't think there was so large scaled increase in the past ever.
- KyleBerezin 3y agoI've been working on the M2 money supply. The total stimulus was in the range of 5T. Pre stimulus the M2 was at 15T, and today it is 21T. M1 is not a good metric for tracking the 'printing' of money.
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- a-user-you-like 3y agoThe fact that the system isn’t opt out is evil.
- deleted 3y ago[deleted]