How do we know inflation was due to the stimulus checks, and not due to supply chain issues caused by covid/Ukraine? IIUC, "European nations largely avoided the one-time payments" [1] but suffered the same inflation [2].

[1] https://fox8.com/news/stimulus-checks-how-much-money-did-peo...

[2] https://en.wikipedia.org/wiki/2021%E2%80%932023_inflation_su...

Edit: After a bit more research, this is less clear -- many European countries provided large unemployment checks during covid.

Inflation is the result of creating money to fund the deficit, it is not caused by supply chain issues.

Supply chain issues definitely do cause inflation. Don't you remember what happened to car prices when the manufacturers couldn't buy enough chips for them?

Now that they can buy enough, why is there no corresponding drop in car prices and deflation?

They are:

https://news.google.com/search?for=car+prices+dropping&hl=en...

3 years of monthly increases, and a small one month drop. When they return to what they were 3 years ago, we can talk.

Not true -- inflation can be caused by multiple things, including supply shocks or even future expectations of inflation ("wage price spiral").

It's Econ 101.

Your Econ 101 professor is wrong.

The proof is simple. Why did we not have deflation when the supply shocks ended?

The value of money is subject to the Law of Supply and Demand like everything else is. Increase the number of dollars, and the value of a dollar goes down.

Probably due to low unemployment [1]. Inflation has multiple causes.

If it truly has a single cause ("creating money"), can you show a graph of "money created" vs inflation? I don't see much correlation between ∆M2 and inflation [2].

[1] https://en.wikipedia.org/wiki/Phillips_curve

[2] https://www.longtermtrends.net/m2-money-supply-vs-inflation/

Looks like they correlate to me.

The UK supported business payrolls directly rather than giving money to the general populace but we still have a problem with inflation.

Sadly UBI will probably work best when it's not U.

I'm not convinced that any UBI program will remain either U or B for very long. The numbers just don't work out. At least, not until we have "fully automated luxury gay space communism"-level technology.

Given 300 million people in the US and $1000/mo UBI, that works out to $3.6 trillion a year.

So ya, that's not going to work.

This isn't UBI.