liar continues to lie

[BSC911]

What was the question?

It’s a simple one.


True or false. Trump’s deficit spending, give aways and tariffs have contributed to the current inflation.


Im not even suggesting Trump is solely responsible. People want to deflect by talking about Biden, which I immediately granted has contributed, but for some reason are unwilling to give Trump any responsibility. In fact, they are afraid to say one way or another. I think they are worried about what their peers will say if they are honest.

 

[EvilWayz]

It’s a simple one.


True or false. Trump’s deficit spending, give aways and tariffs have contributed to the current inflation.


Im not even suggesting Trump is solely responsible. People want to deflect by talking about Biden, which I immediately granted has contributed, but for some reason are unwilling to give Trump any responsibility. In fact, they are afraid to say one way or another. I think they are worried about what their peers will say if they are honest.

Economics is not my strong suit I'm better at mouthing off but let me do some reading.

By giveaways we're referring to the stimulus checks?

 

[BSC911]

Economics is not my strong suit I'm better at mouthing off but let me do some reading.

By giveaways we're referring to the stimulus checks?

Yes.

I know you will give an honest appraisal. You are not afraid to go against the crowd like most of the others are.

 

[EvilWayz]

Yes.

I know you will give an honest appraisal. You are not afraid to go against the crowd like most of the others are.

OK my answer is I'm not qualified to give you an answer. I'll tell you what I know and how I arrived at this.

Before I started reading I know that when everyone suddenly has 2000 dollars or more that means people have more purchasing power and demand goes up.

Based on the lack of toilet paper during the pandemic I can deduce supply didn't catch up, coupled with the fact we had shipping issues worldwide.

Prices, rent, and electricity invariably go up when the minimum wage goes up.

So we have high demand, short supply.

So normally I'd say sure, dumping 800 million into the economy most likely caused inflation.

However, I don't know anything about how 22 million unemployed people than normal, businesses closing, houses being repossessed and banks finding themselves running out of people that pay their bills.

I'm not an economist or a banker and a lot of the information I think I need I can't find.

I also don't know what drove it continually upward since it was at most 4 grand for a large family spread out over a year and a half. I also don't know how states like New York and California that stayed locked down the longest and gave out additional payments monthly affected inflation.

I also have no idea what would have happened without the stimulus.

So based on what I read I don't feel qualified to give an informed answer.

 

[BSC911]

OK my answer is I'm not qualified to give you an answer. I'll tell you what I know and how I arrived at this.

Before I started reading I know that when everyone suddenly has 2000 grand or more that means people have more purchasing power and demand goes up.

Based on the lack of toilet paper during the pandemic I can deduce supply didn't catch up, coupled with the fact we had shipping issues worldwide.

Prices, rent, and electricity invariably go up when the minimum wage goes up.

So we have high demand, short supply.

So normally I'd say sure, dumping 800 million into the economy most likely caused inflation.

However, I don't know anything about how 22 million unemployed people than normal, businesses closing, houses being repossessed and banks finding themselves running out of people that pay their bills.

I'm not an economist or a banker and a lot of the information I think I need I can't find.

I also don't know what drove it continually upward since it was at most 4 grand for a large family spread out over a year and a half. I also don't know how states like New York and California that stayed locked down the longest and gave out additional payments monthly affected inflation.

I also have no idea what would have happened without the stimulus.

So based on what I read I don't feel qualified to give an informed answer.

Pretty good for an amateur. It is as simple as a supply and demand issue. What you are missing is:

Demand
1. Rents were deferred during the pandemic, so people had excess money to spend
2. Unemployment benefits were extended and increased (not just NY and Cali) so being out of work wasn’t a big hit to their income
3. Since most travel and entertainment was shut down in 2020 there was a lot of pent up demand unleashed when things opened up in 2021

Supply
1. Supply dropped in 2020 to meet the reduced demand. Since there were so many people out of work and businesses shut down, it’s not that simplle to just reopen when the vaccine opened things up. In the energy business, people had to be rehired, we had to find new workers for the ones who didn’t want to come back, and rigs all had to be reactivated. This takes time. This happened across all industries.
2. China supply has continued to be cut during their lockdowns
3. Ukraine was a major supplier of certain food items.
4. Obviously the Russia oil boycott caused oil and transportation costs to rise.

Now of course Biden’s spending plans have exacerbated the demand issues, but inflation started picking up well before his bills were passed and the spending occurred. So I’m not saying Trump is ONLY to blame, just that he has contributed to it. I even think the Covid spending was a necessary evil to prevent total economic collapse, but that deficit spending has major inflationary implications.

But the simpletons OTB will just blame Biden for everything.