Luv those Knicks wrote:Neutral 123 wrote:Luv those Knicks wrote:LOL. If it was that easy, then government could just start and stop inflation.
The free market determines the economy far more than the president. Oil prices went up because of the Ukraine war and companies were waiting for the end of covid and people returning to work in larger numbers to kick up prices.
But I'll meet you halfway. The covid stimulus package, which was written in congress, but Biden put his name on it, did add to inflation, but it wasn't the sole cause.
This is pretty good summary.
https://www.politifact.com/factchecks/2022/apr/20/jane-timken/bidens-american-rescue-plan-fueled-inflation-so-di/
Removing liquidity once you've added it involves taking from someone. That can certainly be done easily, but is very difficult politically.
This is done gradually through raising of interest rates that slows down the creation of new debt (money) and reduction in government spending. This takes time.
There are a lot of good sources on this topic and economics in general.
That's true, but what irritates the crap out of me is how everyone says inflation is Biden's fault. Like it wouldn't have happened under Trump. It would have. Maybe 7% instead of 8%, but it still happens.
They put too much into the COVID recovery package, but people don't have crystal balls. Add to that, the war in Ukraine which spiked gas prices and corporations eager to make record profits post COVID and the inflation was bad, and it's already showing signs that the problem has been fixed. Prices can't go up forever.
Inflation was inevitable when the government needed to support people who weren't allowed to work. This of course should have been greatly limited if things were opened up sooner. I think it's fair to question how much of a difference Trump would have made, but that would be because the media and Dems would accuse him of trying to kill grandma.
We are just dealing with two very opposing worldviews. One that seeks the best possible outcomes, and one that seeks the most emotionally satisfying ideas. I agree that inflation isn't Biden's fault. It's ultimately the fault of an immoral population who simply want what they want and don't want to hear that everything in life is a trade off.
The honest thing to do would have been to say that we can support the public now, but the more and longer we do this, the higher inflation will be shown the road. That was the only outcome. But of course no politician from either side can say that today. A real shame. Most people hate the truth.
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