Re:Consumer Prices in U.S. Increase by Most Since 2009
by jonnycomputer on Wednesday May 12, 2021 @02:02PM
(#27133286)
I know at least 3 households who spent all their stimulus dollars paying down debt. And those are the only households I know how they spent it, so 100%.
Decreasing debt to income ratio will stimulate demand, but not in a shock like fashion. Most people don't want to jump back into debt again.
People with big medical bills (because of COVID for example), used it to pay off their medical debts.
People with big credit card debt, student loan debt, car loan debt, mortgages, probably used a lot of it to pay that off.
Other than that, people with homes and cars might have deferred repairs and renovations. So some of that is going to where it would have gone anyway. And why price of wood skyrocketed.
Decreasing debt to income ratio will stimulate demand, but not in a shock like fashion. Most people don't want to jump back into debt again.
People with big medical bills (because of COVID for example), used it to pay off their medical debts.
People with big credit card debt, student loan debt, car loan debt, mortgages, probably used a lot of it to pay that off.
Other than that, people with homes and cars might have deferred repairs and renovations. So some of that is going to where it would have gone anyway. And why price of wood skyrocketed.