Inflation Misinformation
I came across this meme on Facebook. It is a shame that one side’s misinformation gets countered by the other side’s misinformation.
The $4 trillion the fed “printed” went mostly to the top 1%. They don’t use very much of that money to buy consumer goods, hence no CPI inflation. They did inflate where they do spend money, and that is partly the stock market. Most people think of rising stock prices as a good thing, so there were no complaints. When the government started directing more money to the 99%, they wanted to spend this money on consumer goods. With manufacturing and supply chain disruptions because of Covid, the supply of consumer goods was not able to be produced to match the consumer demand, hence inflation.
I am not saying that it was better to send money to the already wealthy. I am saying that a little analysis of the situation would have given planners a hint that they were going to have to have plans for controlling inflation. Perhaps besides controlling monopoly pricing power, they should have been thinking of ways to accelerate consumer goods supplies to meet the increased demand.