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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]“ 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.”[/quote]

+1 add onto that all the money that some people actually saved during the shutdown. For many, like me, had no commuting/office costs, childcare costs, gas, kids activities, etc. I didn’t qualify for any cares act cash, but I saved hundreds a month by everything shutting down. Once everything opened, we entered the world with a lot of disposable savings looking to buy vacations and things we’ve put off, which for me is furniture and a new car[/quote]

This.  We didn't get any money from the CARES Act, but we saved a lot during the pandemic AND we deferred a lot of purchases.  A lot of people did that, so there's multiple years' worth of demand for goods and services.

Add to that manufacturing and supply chain issues that constrained the supply side, and you've got too much money chasing too few goods and services = inflation.[/quote]

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