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Tom Hayden's avatar

Inflation is such a tricky beast - there were so many influxes to the money supply during the COVID and post-COVID era. PPP, the three COVID relief bills, and then the ARP and the infrastructure bill. Both Trump and Biden introduced a many trillion dollar increase in the money supply, which had to be tamped down with high interest rates. I think it sucks that democrats took the hit for that, but that's how the cookie crumbles, I guess.

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Retired 65's avatar

Biden's Fed did not overprint money; if they had, there wouldn't be a shortage of dollars in relation to world demand for them. Again, 2020 happened and people pretending it didn't helped lead to where we are now.

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Tom Hayden's avatar

I mean a $1.2 trillion dollar infrastructure bill is going to add to the money supply. I'm not opposed to it, we desperately needed that infrastructure but surely it's responsible for a non-zero amount of inflation?

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JO's avatar

If I am understanding your points correctly, I think your comment regarding the money supply is incorrect. Putting aside any judgement on whether it was the right thing to do or not, the government (both parties) added roughly $6 trillion to the money supply during and post covid. Just look up the M2 money supply and you can see the trends over time. COVID did not somehow reduce the money supply as you suggest.

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