4 ms·

I'd argue inflation and high interest rates have a large impact too. When every day necessities (shelter, food, healthcare, education) are +30% at a minimum, t

I'd argue inflation and high interest rates have a large impact too. When every day necessities (shelter, food, healthcare, education) are +30% at a minimum, there's not a lot leftover for fancy cars for most Americans.

ashoeafoot 2y ago
Economic self strangulation induced via the wealth gap. Its going to be economically impossible to build anything but luxury shoes next.
- parineum 2y ago
  I could explain to a child how printing new money causes inflation, which we did twice since COVID. How does the wealth gap cause inflation?
  - nozzlegear 2y ago
    I don't claim to be an economist, but direct stimulus payments to Americans totaled about $2100 on average. The US economy is worth trillions annually. I'm sure the stimulus checks made a small bump on inflation in the short term, but they couldn't possibly drive sustained, systemic inflation. Unless you're talking about the broader fiscal packages for supporting businesses/unemployment benefits during COVID when you say "printing new money?"
    - parineum 2y ago
      Printing new money means spending money that doesn't (yet) exist. If there is 1 trillion dollars in the possession of all humans and the government buyys a trillion dollars worth of good with new money, all previous money os jow worth half it's previous value.
  - wqaatwt 2y ago
    It massively inflates asset prices which disproportionately benefit those who are already wealthy (they also have easier access to capital).
  - bryanlarsen 2y ago
    > I could explain to a child how printing new money causes inflation, which we did twice since COVID. We've printed money a dozen times in the 30 years prior to 2022. Economists predicted that all of them would cause inflation. None of them did. In 2022 we had money printing and a supply side squeeze. Insisting that the inflation was caused by the money printing rather than the supply side squeeze takes incredible chutzpah.
    - parineum 2y ago
      The money printing in response to COVID followed by the the infrastructure bill were at a scale not seen before and shouldn't be so easily dismissed in reference to previous deficit spending.
      - bryanlarsen 2y ago
        Germany (and others) printed at a lower rate. If it was a momentary phenomenon, they would have appreciated against the dollar and seen less inflation. Instead they depreciated against the dollar and saw more inflation. Because they had a greater supply shock.
        bryanlarsen 2y ago
        edit: monetary phenomenon. Autocorrect ugh.

ashoeafoot 2y ago

Economic self strangulation induced via the wealth gap. Its going to be economically impossible to build anything but luxury shoes next.

parineum 2y ago
I could explain to a child how printing new money causes inflation, which we did twice since COVID. How does the wealth gap cause inflation?
- nozzlegear 2y ago
  I don't claim to be an economist, but direct stimulus payments to Americans totaled about $2100 on average. The US economy is worth trillions annually. I'm sure the stimulus checks made a small bump on inflation in the short term, but they couldn't possibly drive sustained, systemic inflation. Unless you're talking about the broader fiscal packages for supporting businesses/unemployment benefits during COVID when you say "printing new money?"
  - parineum 2y ago
    Printing new money means spending money that doesn't (yet) exist. If there is 1 trillion dollars in the possession of all humans and the government buyys a trillion dollars worth of good with new money, all previous money os jow worth half it's previous value.
- wqaatwt 2y ago
  It massively inflates asset prices which disproportionately benefit those who are already wealthy (they also have easier access to capital).
- bryanlarsen 2y ago
  > I could explain to a child how printing new money causes inflation, which we did twice since COVID. We've printed money a dozen times in the 30 years prior to 2022. Economists predicted that all of them would cause inflation. None of them did. In 2022 we had money printing and a supply side squeeze. Insisting that the inflation was caused by the money printing rather than the supply side squeeze takes incredible chutzpah.
  - parineum 2y ago
    The money printing in response to COVID followed by the the infrastructure bill were at a scale not seen before and shouldn't be so easily dismissed in reference to previous deficit spending.
    - bryanlarsen 2y ago
      Germany (and others) printed at a lower rate. If it was a momentary phenomenon, they would have appreciated against the dollar and seen less inflation. Instead they depreciated against the dollar and saw more inflation. Because they had a greater supply shock.
      - bryanlarsen 2y ago
        edit: monetary phenomenon. Autocorrect ugh.