The real problem with inflation, viewed from the cheap seats.

[Woodznutz]

The government floods the economy with stimulus
money.

Everyone raises their prices to capture some of it.

The money leaves the economy through the trade deficit and remittances.

The economy now has no more money than before the stimulus, but the higher prices remain.

If the money had remained in the economy things would balance out re higher wages to meet the higher prices.

But, nooooo! -John Belushi

 

[Votto]

Governmental policy is always 100% to blame for inflation, but never takes accountability for it.

Funny that.

The only question is, was it intentional or are they all brainless morons?

My guess would be both.

Governments across the globe created worldwide inflation by shutting down the world economy during Covid, but somehow they have escaped any accountability for it.

The cure was really worse than Covid, which was not cure at all because Sweden kept their economy going and were just fine.

And if it were to happen again, the sad part is they probably would do it the exact same way.

They learn nothing.

 

[Concerned American]

The government floods the economy with stimulus
money.

Everyone raises their prices to capture some of it.

The money leaves the economy through the trade deficit and remittances.

The economy now has no more money than before the stimulus, but the higher prices remain.

If the money had remained in the economy things would balance out re higher wages to meet the higher prices.

But, nooooo! -John Belushi

Any move to artificially flood the money supply will inevitably lead to inflation. There is no such thing as 'equity' in the job market. Brain surgeons will always make more than machinists and electricians and skilled labor will always make more than unskilled labor. If the gov't tries to insert artificial equity, those who have the more skilled jobs will look to reclaiming that spread and inflation will result because EVERYONE is charging more to produce the products. It is so simple it is stupid---our reps just don't seem to have much in the way of brains.

 

[1srelluc]

But, but, but, universal income!