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Money and Finances
Reply to "Inflation: explain it to me like I'm 5"
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[quote=Anonymous][quote=Anonymous]Why is everything so expensive now compared to just 3 years ago? Is it ever going to go back to how it was? I learn a lot on this board so I'm looking for genuine insight. Is it because the government put so much money into circulation during the pandemic and disincentivized work? [/quote] The “and” is not necessary/actually cuts against. People had too much money—both that they earned and were given/didn’t need to pay on debts—which they used to buy things like cars and houses, creating a shortage in available cars and houses, causing prices to rise. Still other shortages of goods were caused by supply chain problems, which also caused prices to rise (supply not meeting demand). [/quote]
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