Woodznutz
Platinum Member
- Dec 9, 2021
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The stimulus caused the inflation. "Too much money chasing too few goods." No 'goods' were produced with that money, so it attached itself to existing goods, raising their price.The stimulus didn't cause the inflation. It's not as if we took a normal economy and pumped $11 trillion into it. It replaced lost revenue and wages. The other factors you mentioned had the real effect on inflation.
The stimulus was well and good and is a smart thing to do, when facing a catastrophic recession. Then, when the recession wanes, we raise taxes and build the coffers back up.
In normal world.