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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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.[/quote]

+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.[/quote]

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..[/quote]

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

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.[/quote]

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. [/quote]

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