Mikeoxenormous
Diamond Member
- Thread starter
- #61
Oh by the way, you may think that the economy is doing well, but 80% of US households will disagree with you. That is how out of touch you are with reality.No. Those stimulus checks were spent very quickly and GDP did not go up... you get that right? If GDP doesnt go up... spending is not driving demand. If it were then you'd see crazy GDP growth driving inflation. That never occured. Instead you saw government spending REPLACE private spending. That only replaced demand, and only some of it. It did not add demand. Anyone who thinks spending drove inflation is just not looking at the data.. they are speaking from their heart cuz they dont like government spending. But listen to me. Spending was a miniscule part of inflation. That is a fact supported by many studies. It was wage inflation (20%), supply disruptions (40%), and profit taking by corporations (40%).
As the labor market tightened during 2021 and 2022, core inflation rose as the ratio of job vacancies to unemployment increased. This ratio is used to measure wage pressures that then pass through to the prices for goods and services. As workers bargain for better pay, firms begin to increase prices. So, from this research, the authors find that three main components explain the rise in inflation since 2020: volatility of energy prices, backlogs of work orders for goods and service caused by supply chain issues due to COVID-19, and price changes in the auto-related industries.What caused inflation to spike after 2020? : Monthly Labor Review: U.S. Bureau of Labor Statistics
Researchers examine why inflation rose during the COVID-19 pandemic.www.bls.gov
'Excess profits' at big energy and consumer companies pushed up inflation, report claims
The report identified Shell, Exxon Mobil, Glencore and Kraft Heinz as among the firms that saw profits "far outpace" inflation.www.cnbc.com