Making sense of what’s going on in the housing market

Re:Making sense of what’s going on in the housing market by Aunche on Wednesday April 21, 2021 @05:36PM (#26895759)

Handing everyone a check directly increases inflation. There is no increase of the supply of goods, so everyone would competing for the same things and prices, raising prices. Poorer people spend more money paying off debt or purchasing consumer goods, so most of that money flows straight to the top anyways. Since this money comes straight from the money printer rather than through taxes, this means that the wealth gap gets exacerbated through stimulus checks.

Purchasing assets introduces liquidity, but isn't equivalent of handing people money. The Fed receives the equivalent value in the form of debt.

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Re:Making sense of what’s going on in the housing market by skybrian on Wednesday April 21, 2021 @09:00PM (#26897411)

In theory, the increased demand that might cause inflation could be partially or fully cancelled out by a tax increase. (In practice, Congress is unlikely to do it.)

It looks like we are seeing supply bottlenecks in certain areas. The price of lumber is bottlenecked by sawmills and electronics are bottlenecked by fabs.

But I wonder what’s not bottlenecked that could absorb more demand?

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Re:Making sense of what’s going on in the housing market by 8note on Thursday April 22, 2021 @03:20AM (#26899771)

The GDP is very high versus what most poor people have to spend, so I can't imagine this inflation is much of an issue.

There's more than enough stuff for people to be buying

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