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Re:LA County's guaranteed income program to give some foster... by WalterBright on Thursday October 26, 2023 @02:12PM (#38029540)
Inflation is the result of creating money to fund the deficit, it is not caused by supply chain issues.
Re:LA County's guaranteed income program to give some foster... by tonyedgecombe on Thursday October 26, 2023 @02:30PM (#38029798)
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?
Re:LA County's guaranteed income program to give some foster... by WalterBright on Thursday October 26, 2023 @06:17PM (#38032407)
Now that they can buy enough, why is there no corresponding drop in car prices and deflation?
Re:LA County's guaranteed income program to give some foster... by tonyedgecombe on Friday October 27, 2023 @03:04AM (#38035541)
Re:LA County's guaranteed income program to give some foster... by WalterBright on Friday October 27, 2023 @03:43AM (#38035771)
3 years of monthly increases, and a small one month drop. When they return to what they were 3 years ago, we can talk.
Re:LA County's guaranteed income program to give some foster... by verteu on Thursday October 26, 2023 @02:53PM (#38030138)
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.

Re:LA County's guaranteed income program to give some foster... by WalterBright on Thursday October 26, 2023 @06:15PM (#38032393)
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.

Re:LA County's guaranteed income program to give some foster... by verteu on Friday October 27, 2023 @11:21AM (#38039664)
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/

Re:LA County's guaranteed income program to give some foster... by WalterBright on Friday October 27, 2023 @03:19PM (#38042702)
Looks like they correlate to me.