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The US is just printing money like there is no tomorrow. Just look at their deficit its now approaching 2 TRILLION USD. No wonder their GDP "grew".
by kkzz99 3y ago
The US is just printing money like there is no tomorrow. Just look at their deficit its now approaching 2 TRILLION USD. No wonder their GDP "grew".
- alexb_ 3y agoThis is inflation adjusted.
- kkzz99 3y agoBut deficit doesn't mean inflation.
- flybrand 3y agoInflation metrics are gamed, it no longer includes major categories.
- criddell 3y agoThere are a lot of price indexes that all include different things. Have there been changes to what goes into particular indices?
- gruez 3y agoIt does though. Which "major categories" are you talking about?
- xnx 3y agoEven inflation "truthers" truflation.com had to stop showing their chart of "true" inflation because it had dropped so much. Prices now are higher than they were 3 years ago, but continued inflation is not currently a problem.
- mrguyorama 3y agoAin't it funny how the raw potatoes dug out of the ground are just as cheap as they were 5 years ago here in my state, while potato chips have doubled in price? Even the supermarket brand chips are still only a couple dollars. That sound like "Inflation" to you? Steak is still $8/lb but my sugar free soda is suddenly twice as expensive
- rory 3y agoAppreciate you fighting the good fight here, but this one is actually a valid point. If real GDP growth is at 4.9% while the government deficit is at 5.3% of GDP, (in most cases) GDP isn't actually growing organically. https://fred.stlouisfed.org/series/FYFSGDA188S https://fred.stlouisfed.org/series/FYFSGDA188S
- justrealist 3y agoThat's not really how it works. US deficit spending isn't producing goods or services. It can motive the production thereof, but it doesn't change the fact that actual things were produced and then purchased using that money. If people took 100% of the government deficit spending and left it in a savings account, it wouldn't count towards GDP. But clearly that's not happening.
- rory 3y agoNo, it is really how it works, (as I caveated) most of the time. I don't understand what you're arguing here. Is your claim that most of that government deficit was not spent in the domestic economy (therefore stimulating GDP growth)?
- roflyear 3y agoIt's not true that we're printing money like there is no tomorrow. Look: https://fred.stlouisfed.org/series/FYFSGDA188S https://fred.stlouisfed.org/series/FYFSGDA188S This is as % of GDP, but it's a good stand-in for inflation. Deficits are going down since 2020.