Re:Inflation rose 9.1% in June, even more than expected
by jjoonathan on Wednesday July 13, 2022 @10:09AM
(#32082964)
They printed 10x as much money into asset markets, but I am sure they will blame stimulus checks.
Re:Inflation rose 9.1% in June, even more than expected
by xyzzyz on Wednesday July 13, 2022 @10:58AM
(#32083630)
You’re missing the parent’s point: in a counterfactual scenario, if as much money was handed directly in stimulus checks as was used to pump assets, the actual inflation would be even worse, because velocity of stimulus money is much higher than velocity of asset.
Re:Inflation rose 9.1% in June, even more than expected
by jjoonathan on Wednesday July 13, 2022 @12:11PM
(#32084686)
No, I did not miss the point that asset markets have lower velocity. Quite the opposite: I found it obvious and repulsively self-serving to invoke this as an excuse for rich people to print and pocket ten times as much money.
Re:Inflation rose 9.1% in June, even more than expected
by sokoloff on Wednesday July 13, 2022 @12:31PM
(#32084986)
I don't see anywhere that I said that it was a good excuse to do that, merely that (in a thread specifically about inflation) I commented on the relative impact on inflation of high-velocity money vs low-velocity money.
Re:Inflation rose 9.1% in June, even more than expected
by jjoonathan on Wednesday July 13, 2022 @01:16PM
(#32085735)
You repeated a talking point that has been widely invoked to rationalize printing lots of low-velocity money.
Re:Inflation rose 9.1% in June, even more than expected
by titzer on Wednesday July 13, 2022 @12:12PM
(#32084700)
And yet people have argued for decades that stimulus money going to corporations is multiplied many times over because those corporations supposedly create jobs which supposedly creates even more economic activity. Why is it not the case that stimulus money to corporations creates multiplicative inflationary effects in the same way?
Re:Inflation rose 9.1% in June, even more than expected
by sokoloff on Wednesday July 13, 2022 @12:53PM
(#32085368)
Companies grow by producing supply of products/services for sale. They also turn around and employ staff. The first sentence represents the creation of supply; the second the creation of demand [via the payments of wages]. That's much more balanced than if you just give money to consumers, increasing demand without a corresponding increase in supply.
Re:Inflation rose 9.1% in June, even more than expected
by jjoonathan on Wednesday July 13, 2022 @01:33PM
(#32086000)
You conveniently left out the part where they are entitled to pocket it if they can, sending it straight into rich peoples' brokerage accounts, where it was intended to go all along.
Yes, the brokerage accounts of rich people have less velocity than the bank accounts of poor people. This makes it more scandalous, not less. People who didn't need the money took ten times as much, because they could, and now they are pointing accusing fingers at the little people. Again.
Re:Inflation rose 9.1% in June, even more than expected
by titzer on Wednesday July 13, 2022 @10:57AM
(#32083602)
The irony of this statement is that it's so often the case that people argue for lower taxes with "I know how to spend my money better than the government!" Then when it comes to stimulus money, it's the complete opposite: "Don't give it to consumers, that'll cause inflation! Give it to corporations, they know how to spend it! They'll make jobs or something!"
I would at least expect that to be less inflationary than that same amount of money ending up in consumers’ hands and being rapidly spent without an offsetting increase in production.
When the government opens up the feeding trough, it should expect pigs to show up. I agree that it probably can’t be blocked up front, but fraud needs to be prosecuted aggressively after the fact.