"government spending" does not cause companies who are making record profits to increase their prices. That's just greed.
All the free money being printed hasn't stopped Americans from seeing utility disconnections, credit card balances, and bill delinquencies skyrocket. Evictions have also been rising in suburbia, but somehow we're supposed to think that all the price hikes on everything is because the American people just have too much money? That the government was wrong to provide disaster relief to people so they could keep a roof over their heads and food on the table when they weren't able to work?
>"government spending" does not cause companies who are making record profits to increase their prices. That's just greed.
It absolutely does. If people have "extra" money (e.g. COVID payments), they can bid higher on limited resources (i.e. inflation). If there's more employed (i.e. government jobs), that's again, more people with more money, for limited resources (i.e. inflation).
While I'm sure companies are taking advantage of the fact, they must also realise that there's more demand for their limited resources, which causes them to raise prices.
These companies are making "record profits", but you also need to consider that the purchasing power of your dollar is being debased, and these companies are (at least partially) trying to keep up with inflation.
autoexec|2 years ago
All the free money being printed hasn't stopped Americans from seeing utility disconnections, credit card balances, and bill delinquencies skyrocket. Evictions have also been rising in suburbia, but somehow we're supposed to think that all the price hikes on everything is because the American people just have too much money? That the government was wrong to provide disaster relief to people so they could keep a roof over their heads and food on the table when they weren't able to work?
throwaway5Am1k|2 years ago
It absolutely does. If people have "extra" money (e.g. COVID payments), they can bid higher on limited resources (i.e. inflation). If there's more employed (i.e. government jobs), that's again, more people with more money, for limited resources (i.e. inflation).
While I'm sure companies are taking advantage of the fact, they must also realise that there's more demand for their limited resources, which causes them to raise prices.
These companies are making "record profits", but you also need to consider that the purchasing power of your dollar is being debased, and these companies are (at least partially) trying to keep up with inflation.
argentinian|2 years ago
Here in Argentina we even have politicians that affirm "Saying that printing money causes inflation it totally false" https://www.pagina12.com.ar/diario/economia/2-190369-2012-03...