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How did the COVID handouts cause inflation? It was only a small amount. Isn't inflation caused by macro-economic forces, e.g. interest, international policy / s
by Cthulhu_ 2y ago
How did the COVID handouts cause inflation? It was only a small amount. Isn't inflation caused by macro-economic forces, e.g. interest, international policy / stability, and free market somethings?
- seanp2k2 2y agoAnd don’t forget all those PPP loans that Congress persons didn’t have to pay back https://fortune.com/2020/07/08/ppp-loan-recipients-members-of-congress/ https://fortune.com/2020/07/08/ppp-loan-recipients-members-o...
- tartuffe78 2y agoRegular businesses didn’t either, my company got one but actually voluntarily did pay it back
- dgfitz 2y agoYes as a person you got a modest check. You don’t remember all the fraudulent “loans” than have been prosecuted? Most of the money went to !individual people.
- aeyes 2y ago5 Trillion added to the Fed balance sheet is not a small handout. They didn't o ly hand out money to individuals but also gave to businesses and propped up the bond market.
- kelnos 2y agoLet's not forget, though, that Trump is the one who kicked this off: he signed the first COVID-related stimulus package ad the end of March 2020, to the tune of $2 trillion. Given that he was only in office for the first year of the pandemic, it seems reasonable that Biden signed another $3 trillion away. If all that caused inflation, Trump and Biden deserve the blame together.
- andy_ppp 2y agoIf you print money to pay for things generally that causes inflation, it’s one of the few clear facts economists will tell you they 100% know.
- BeFlatXIII 2y agoThe reason COVID handouts caused inflation while the '08 handouts didn't is that the COVID handouts went to regular people who spent the money while the '08 was wasted on bailing out the 1%, who spent it on assets that regular people don't buy every week.