The Most Fresh & Cordial Political Thread Ever

[SunnySide]

Originally Posted by Chico23231

It just took 2 years for Biden to get us here. Pretty amazing

Economists at the Federal Reserve Bank of San Francisco found that fiscal support measures in the U.S., including the bills passed in 2020, raised inflation by about 3 percentage points. But they also found that the stimulus checks caused U.S. disposable income to surge and then drop back down, and that those peaks came in mid-2020—when the first stimulus checks were sent out—and early 2021.

Some economists are even skeptical that the stimulus measures contributed as much as three percentage points to inflation. Research shows that most consumers saved the money they received from 2020 stimulus payments or used it to pay off debts.

And while U.S. inflation was previously running higher than inflation elsewhere, which might suggest that stimulus payments had a role, that’s no longer true. In September, inflation in the European Union was 10.9%, higher than that in the U.S., even though Europe did not issue stimulus checks to the degree that the U.S. did.

“This blaming Biden for inflation is just silly – inflation is a global phenomenon,” says Robert Kaufmann, a Boston University professor who studies energy and economics.

The simplest explanation for inflation, he says, is this: when COVID-19 began, businesses who were worried about the possibility of a long recession drastically cut production. Oil companies stopped searching for new drilling spots, factories canceled orders for parts, and consumer-facing businesses laid off workers.

https://time.com/6226145/inflation-m...22-fact-check/

I read a real good article on causes of inflation last night but cant find it now, found this one.

if youre interested in learning about inflation ....