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Political Discussion
Reply to "Inflation is your fault "
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[quote=Anonymous][quote=Anonymous]I mean isn’t spending money good for the economy? And how is it that consumers spending money is causing inflation?[/quote] Consumer demand outpacing supply is a primary cause of inflationary pressure. Consumers had excess cash in hand from 2020 through 2022 to spend on goods that weren't being replenished at the rate of demand. There are other factors as well but supply and demand is the most direct cause of changes in the price of goods over time. Higher interest rates and a tightening in the credit market have lessened the amount of cash consumers are willing and able to spend and we're starting to see those impacts on the rate of inflation. [/quote]
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