Can someone explain to me why we have such high inflation now?

[Anonymous]

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

LOL The child tax credits accounted for HALF of the inflation, 3%, at a time it was ‘only’ 7% in the first place.

And that’s just facts.

Did you think handing parents thousands in unearned income a month for no reason would do nothing?

https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/?amp=1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

LOL The child tax credits accounted for HALF of the inflation, 3%, at a time it was ‘only’ 7% in the first place.

And that’s just facts.

Did you think handing parents thousands in unearned income a month for no reason would do nothing?

https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/?amp=1

It didn't "do nothing," it also reduced child poverty by 30 percent and kept 3 million kids out of poverty. https://www.npr.org/2022/01/27/1075299510/the-expanded-child-tax-credit-briefly-slashed-child-poverty-heres-what-else-it-d

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

LOL The child tax credits accounted for HALF of the inflation, 3%, at a time it was ‘only’ 7% in the first place.

And that’s just facts.

Did you think handing parents thousands in unearned income a month for no reason would do nothing?

https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/?amp=1

It didn't "do nothing," it also reduced child poverty by 30 percent and kept 3 million kids out of poverty. https://www.npr.org/2022/01/27/1075299510/the-expanded-child-tax-credit-briefly-slashed-child-poverty-heres-what-else-it-d

While paying two-person household able-bodied parents with no jobs thousands in income for a year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

LOL The child tax credits accounted for HALF of the inflation, 3%, at a time it was ‘only’ 7% in the first place.

And that’s just facts.

Did you think handing parents thousands in unearned income a month for no reason would do nothing?

https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/?amp=1

The rate of inflation in the United States is now lower than the OECD average. Why is that?

[Anonymous]

Anonymous wrote:“ Understanding the CARES Act
At $2.2 trillion, the CARES Act stands as the largest financial rescue package in U.S. history. The 2009 Recovery Act was $831 billion, the Consolidated Appropriations Act (CAA) was $910 billion, and the American Rescue Plan Act (ARPA) comes closest at $1.9 trillion.”

that coupled with the massive tax reductions to the rich under Trump. Plus, supply chain issues post Covid that make demand look too high.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

Oh, shut up. This is the most partisan post of all time. You clearly didn't even read the lastest CPI report.

Anyone who thinks trillions of dollars that got pumped into the economy, zero percent interest rates, and quantitative easing aren't the root cause of inflation doesn't live on planet Earth. The lastest CPI report blows up your entire narrative and clearly shows inflation is being demand driven. Inflation in the US started rocketing well before Russia invaded the Ukraine. The excuse that inflation is global is handwaving garbage in an attempt to salvage something from this current disaster and to deflect. Europe's problems, believe it or not, are different than the US'. CAA, CARES, PPP.....it all is contributing to inflation. It's not even debatable. Trillions of dollars in handouts and no consequences? Laughable.

Someone needs to stop drinking the MMT Kool aid. This experiment clearly blows up the entire narrative that the govt can spend and create money willy nilly with no consequences..

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

LOL The child tax credits accounted for HALF of the inflation, 3%, at a time it was ‘only’ 7% in the first place.

And that’s just facts.

Did you think handing parents thousands in unearned income a month for no reason would do nothing?

https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/?amp=1

The rate of inflation in the United States is now lower than the OECD average. Why is that?

Maybe because we finally stopped giving out lump-sums of cash for no reason just about six months ago with the final 2021 tax payments? So we're averaging out. Meaning we need to stay far away from another CTC and stimulus check-fueled inflation spike because I'm not looking forward to 11% inflation, are you?

https://www.jpmorganchase.com/institute/research/household-income-spending/household-cash-balance-pulse-families

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

Oh, shut up. This is the most partisan post of all time. You clearly didn't even read the lastest CPI report.

Anyone who thinks trillions of dollars that got pumped into the economy, zero percent interest rates, and quantitative easing aren't the root cause of inflation doesn't live on planet Earth. The lastest CPI report blows up your entire narrative and clearly shows inflation is being demand driven. Inflation in the US started rocketing well before Russia invaded the Ukraine. The excuse that inflation is global is handwaving garbage in an attempt to salvage something from this current disaster and to deflect. Europe's problems, believe it or not, are different than the US'. CAA, CARES, PPP.....it all is contributing to inflation. It's not even debatable. Trillions of dollars in handouts and no consequences? Laughable.

Someone needs to stop drinking the MMT Kool aid. This experiment clearly blows up the entire narrative that the govt can spend and create money willy nilly with no consequences..

You should probably reread my post and actually respond to it rather than the imaginary person you're currently arguing with.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Amazing how Americans don't understand basic econ. You thought all those stimmi checks, PPP loans, and other free give aways had no consequences? The US gov have away multiple trillion dollar+ stimuli. The Fed juiced the economy with zero percent interest rates, doubled the supply of money in only 2 years, and expanded the balance sheet to $9 trillion dollars (it was only $800B around 2008). When you have that much cash and credit liquidity in the system you get persistent inflation. How in the hell do American consumers STILL have a voracious appetite for vacations, cars, electronics, dining out, etc. even though prices are skyrocketing? It's because people have too much money. The stamina for price hikes that Americans have is absurd. It means inflation is sticky and very difficult to dislodge.

The latest CPI report tanked the markets. It was very bad. It clearly shows inflation is being driven by excessive demand as well as an overly tight labor market and not so much due to supply constraints. Yes, the labor market is too hot. Unemployment also needs to go back up to reduce the strangle the labor market has on inflation.

The fed is now raising interest rates and quantitative tightening to remove money and liquidity from the economy. Costs to borrow are skyrocketing. It will bring down asset values, remove.miney from the system, and hopefully cause unemployment to go up. The net result will hopefully be taming of this terrible inflation.

Amazing how you don't understand this is a global phenomenon. It's not just the United States.

Also, FU with your "people need to suffer unemployment to solve the problem." I bet you're not volunteering to quit your job. We have a garbage social safety net in this country. I, for one, am willing to pay more for things if it means that more people have jobs.

You are the biggest imbecile on these forums. Newsflash moron: the labor market is unhealthy. In case you haven't noticed, real earnings for Americans are DECREASING because of inflation. Labor productivity is tanking, which is all helping to push inflation higher. The labor market needs to cool so a healthier equilibrium is set they helps to combat inflation and Americans are not getting negative earnigns growth because of inflation. You are dumb.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

Oh, shut up. This is the most partisan post of all time. You clearly didn't even read the lastest CPI report.

Anyone who thinks trillions of dollars that got pumped into the economy, zero percent interest rates, and quantitative easing aren't the root cause of inflation doesn't live on planet Earth. The lastest CPI report blows up your entire narrative and clearly shows inflation is being demand driven. Inflation in the US started rocketing well before Russia invaded the Ukraine. The excuse that inflation is global is handwaving garbage in an attempt to salvage something from this current disaster and to deflect. Europe's problems, believe it or not, are different than the US'. CAA, CARES, PPP.....it all is contributing to inflation. It's not even debatable. Trillions of dollars in handouts and no consequences? Laughable.

Someone needs to stop drinking the MMT Kool aid. This experiment clearly blows up the entire narrative that the govt can spend and create money willy nilly with no consequences..

You should probably reread my post and actually respond to it rather than the imaginary person you're currently arguing with.

You should probably read the latest CPI report before spouting your dumb, misinformed narrative about 'InFlAtIoN iS GloBaL and SupPlY DrIvEn!'. The entire report throughly discredits you your team.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

Oh, shut up. This is the most partisan post of all time. You clearly didn't even read the lastest CPI report.

Anyone who thinks trillions of dollars that got pumped into the economy, zero percent interest rates, and quantitative easing aren't the root cause of inflation doesn't live on planet Earth. The lastest CPI report blows up your entire narrative and clearly shows inflation is being demand driven. Inflation in the US started rocketing well before Russia invaded the Ukraine. The excuse that inflation is global is handwaving garbage in an attempt to salvage something from this current disaster and to deflect. Europe's problems, believe it or not, are different than the US'. CAA, CARES, PPP.....it all is contributing to inflation. It's not even debatable. Trillions of dollars in handouts and no consequences? Laughable.

Someone needs to stop drinking the MMT Kool aid. This experiment clearly blows up the entire narrative that the govt can spend and create money willy nilly with no consequences..

You should probably reread my post and actually respond to it rather than the imaginary person you're currently arguing with.

You should probably read the latest CPI report before spouting your dumb, misinformed narrative about 'InFlAtIoN iS GloBaL and SupPlY DrIvEn!'. The entire report throughly discredits you your team.

Inflation is global, and it is supply-driven. I know that's inconvenient to your narrative, but this is what is happening. Your theory doesn't fit the evidence.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

Oh, shut up. This is the most partisan post of all time. You clearly didn't even read the lastest CPI report.

Anyone who thinks trillions of dollars that got pumped into the economy, zero percent interest rates, and quantitative easing aren't the root cause of inflation doesn't live on planet Earth. The lastest CPI report blows up your entire narrative and clearly shows inflation is being demand driven. Inflation in the US started rocketing well before Russia invaded the Ukraine. The excuse that inflation is global is handwaving garbage in an attempt to salvage something from this current disaster and to deflect. Europe's problems, believe it or not, are different than the US'. CAA, CARES, PPP.....it all is contributing to inflation. It's not even debatable. Trillions of dollars in handouts and no consequences? Laughable.

Someone needs to stop drinking the MMT Kool aid. This experiment clearly blows up the entire narrative that the govt can spend and create money willy nilly with no consequences..

You should probably reread my post and actually respond to it rather than the imaginary person you're currently arguing with.

You should probably read the latest CPI report before spouting your dumb, misinformed narrative about 'InFlAtIoN iS GloBaL and SupPlY DrIvEn!'. The entire report throughly discredits you your team.

DP: I'm the original person who said we need to contextualize this in global inflation. I wasn't saying it's exclusively supply-chain/global issues--rather that any talk of causes had to keep that in mind.
US stimulus had an important impact. As does pent-up demand resulting from the pandemic--both nationally and globally. As does the general American tendency to keep spending regardless of conditions. The CPI report focuses on the impact of US policies on US inflation (and considers supply chain in a very narrow way) so it only is going to give proportional impacts of policies on inflation--not address all the meaningful contextual factors and I think you know this. Supply chain issues aren't the only global impact.

It also doesn't assess whether we got valuable things from those policies-- stable income/housing during a pandemic before vaccines were available and not everyone could safely work, children not in poverty, high unemployment rate. Causes of inflation are multiple--and the effects of policies need to be judged not just by their effect on inflation but on their broader long-term impacts.

[Anonymous]

Demand is higher than supply.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of these answers aren't contextualizing it in the fact that there is high global inflation. The US is in line with what everyone is experiencing so tying it just to US policies doesn't make sense.

+100

Anybody who cites CAA, CARES Act, PPP loans, etc, as a reason for inflation in the United States is a partisan hack, woefully underinformed, or both. CAA, CARES, PPP et al are making inflation in the United States run marginally hotter, but they're not the proximate cause. Countries that were stingier with fiscal and monetary stimulus are still experiencing decades-high inflation rates; the UK, for instance, spent about half as much on fiscal stimulus relative to GDP as we did, and yet their inflation rate is higher than ours.

The current state of global inflation is disproportionately caused by supply-side issues; the well-publicized supply chain woes, disruptions in the energy market, etc.

Oh, shut up. This is the most partisan post of all time. You clearly didn't even read the lastest CPI report.

Anyone who thinks trillions of dollars that got pumped into the economy, zero percent interest rates, and quantitative easing aren't the root cause of inflation doesn't live on planet Earth. The lastest CPI report blows up your entire narrative and clearly shows inflation is being demand driven. Inflation in the US started rocketing well before Russia invaded the Ukraine. The excuse that inflation is global is handwaving garbage in an attempt to salvage something from this current disaster and to deflect. Europe's problems, believe it or not, are different than the US'. CAA, CARES, PPP.....it all is contributing to inflation. It's not even debatable. Trillions of dollars in handouts and no consequences? Laughable.

Someone needs to stop drinking the MMT Kool aid. This experiment clearly blows up the entire narrative that the govt can spend and create money willy nilly with no consequences..

You should probably reread my post and actually respond to it rather than the imaginary person you're currently arguing with.

You should probably read the latest CPI report before spouting your dumb, misinformed narrative about 'InFlAtIoN iS GloBaL and SupPlY DrIvEn!'. The entire report throughly discredits you your team.

Inflation is global, and it is supply-driven. I know that's inconvenient to your narrative, but this is what is happening. Your theory doesn't fit the evidence.

Once again, read the CPI report. It blows a hole through your narrative. Good luck trying to run on your excuses. Voters aren't buying it.

https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/


https://abcnews.go.com/US/wireStory/driven-consumers-us-inflation-grows-persistent-89863444

Some of the longtime drivers of higher inflation — spiking gas prices, supply chain snarls, soaring used-car prices — are fading. Yet underlying measures of inflation are actually worsening.

Tell me you didn't read and/or didn't understand the latest CPI report without telling me you never even read and/or can't understand the report. Your entire narrative got destroyed.

[Anonymous]

Okay, the nasty poster who is calling everyone dumb and stupid aside, I found this interesting:

https://www.nytimes.com/2022/07/21/opinion/paul-krugman-inflation.html

Also this series of articles from Vox (the "titles" in the URLs are really odd:
https://www.vox.com/the-goods/22994731/inflation-rate-russia-gas-prices-jerome-powell

https://www.vox.com/22996474/inflation-federal-reserve-nairu-ngdp-powell

https://www.vox.com/the-goods/23339531/federal-reserve-inflation-jerome-powell-unemployment-interest-rates