No. of Recommendations: 3
These threads really show you the power of left wing bubbles and the inability of some to think their way out of them.
First, some Econ 101. Inflation is a direct result of 2 things:
1. Supply/demand of goods and services in the economy (transitory)
2. The money supply (long term)
Going into COVID, prices fell because demand fell off for some things. Gas, for one: no one driving meant prices for oil and downstream products like gasoline cratered. This was repeated throughout the economy. The government rightly increased spending to keep the economy from plunging into depression thanks to blue state-led lockdowns.
Coming out of COVID, all the demand that had been suppressed returned, driving up prices. The proper response from the government should have been to retract spending and encourage people to return to work; the pre-COVID balance would have been restored.
But that's not what the government did. Instead of backing off and naturally letting the economy recover Biden threw gasoline on the inflationary fire and kept spending. And spending. And spending.
So instead of prices rebounding to roughly their pre-COVID levels now we've diluted the value of the dollar such that high prices are baked into the cake.
Let's go, Brandon! Heckuva job.
