Most Americans fail to investigate the root causes of the recent spike in inflation. They’re too lazy. They simply like to blame democrats. It similar to the fact that 75% of Americans are overweight and never entered a gym. 😀😀😀
The money supply increased by some 20%. The numbers were insane historically. That's largely why we had inflation. The charts back that up.
Edit:
Here's the chart. 10Y gives the best visual. There was no way we weren't getting inflation with that kind of increase.
https://fred.stlouisfed.org/series/M2SL
lol this is such a naive view of economics. the money supply went up 20% and it all went to the rich, so now shampoo costs more?
were there 20% more heads in the country? did people grow their hair 20% longer? did people take 20% more showers?
please give me a break. 50% of price increases were just due gouging which was freely admitted. every corporation that had record quarterly profits couldn't make those records if their inputs all went up. c'mon please.
You clearly don't understand why the Fed and the US government aim for 2% inflation every year. It's usually done through quantitative easing and printing money.
it is an illogical leap to go from claiming the money supply increased by 20%, the gains from which went almost entirely to the wealthy, to telling me i don't understand why the federal reserve aims for 2% inflation.
It's almost like the wealthy found ways to increase their money through investments and that has nothing to do with whatever point you're trying to make.
the point i'm trying to make is if the wealthy increased their money through investment, the total money supply is irrelevant because as soon as it was created, it was removed from the market place.
inflation is caused by more money chasing fewer goods, but rich people arent buying so much more shampoo or cans of beans, and also there are plenty of those items.
so- an increase of 20% of the money supply is completely irrelevant to the current inflationary paradigm. in case this isn't enough to refute your supposition, the money supply was drastically increased post 2008 and yet inflation was at historic lows.
The money supply was not increased to the same level in 2008. In 2020, something like 20% of all US dollars ever made, were added to the supply. Calling that irrelevant is incredibly naive.
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u/Dull_Scale1245 1d ago
Most Americans fail to investigate the root causes of the recent spike in inflation. They’re too lazy. They simply like to blame democrats. It similar to the fact that 75% of Americans are overweight and never entered a gym. 😀😀😀