Quote:
Originally Posted by Slava
It's interesting though...in 2008-09 I heard the same arguments about how inflation was going to be out of control and how they were putting too much money into the system. This time, the issue seems to be supply-chain issues and concerns though, and the money printing seems more coincident?
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They are all inter-related, I would think. Trump's tax cuts added money to the economy at a time when it was already in danger of over-heating. That increased the conditions for risk. COVID money itself was probably just a temporary pressure on prices, but made the risk of inflation higher. I don't know how much the covid relief impacted the job market, but the lack of supply of workers definitely added to the snowball of pressuring prices upwards. Then the supply chain issues came, then the war in Ukraine.
All of it is to blame really. Some of these things have to be temporary, you would think? It seems we'd be getting close to the point where prices at least stabilize at a new normal. Once they stabilize (even at a high price point), then inflation is no longer a problem, and some of the inflation fighting measures can stop.