BufferUnderpants t1_j1avy9v wrote
Reply to comment by mrpoops in Leaked internal document shows Amazon expects a soft landing for the US economy and little chance of a recession, a rosier outlook than many other forecasters by Sorin61
> Printing a trillion dollars and handing it out like candy isn’t nearly enough to cause 10% inflation in a country with a 21 trillion dollar economy.
How do you reach that conclusion? I'm not sure it's 1-to-1 extra cash on hand and GDP.
Also, don't get me wrong, supply issues are part of the equation, which is also why lockdowns+aid was going to be a double whammy, but it only adds up. Again, I think this was the right choice, but dude, didn't your politicians warn you?
I've seen estimates of the war in Europe adding 1.5% percent points of inflation
It's a combination of internal and external factors, but pumping a trillion dollars into a halted economy is an important one, supply chains would have had trouble keeping up with the demand even with things rolling as usual.
mrpoops t1_j1b4zbb wrote
https://cdn.factcheck.org/UploadedFiles/12-month-percentage-chan.png
Russia was the gas station for Europe and a big chunk of Asia. When fuel prices go up it’s more expensive to do everything.
I’m not exactly sure how a couple 1400 checks to everyone 2 years ago would keep inflation at 10%…
If you flood the economy with free cash and it’s causing inflation there would need to be a corresponding increase in consumer spending.
That didn’t happen.
BufferUnderpants t1_j1b6y4o wrote
Alright dude, whatever, you win, there's alternative facts and theories that the establishment keeps secret from everyone as to why inflation happens.
mrpoops t1_j1b7zbo wrote
It’s not complicated. The US sending out $1400 checks 2 years ago didn’t create inflation in other places, like Europe.
A global market collapse, (mostly Chinese) supply chain issues and a war in Europe that’s still happening are way more obvious answers….
I dunno what to tell ya. Economists are biased and say whatever matches their worldview. Bottom line is there needs to be a mechanism for this stuff…and giving a couple grand to people years ago now isn’t gonna cause 10% inflation now, across the entire western world…
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