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A comment on LA County's guaranteed income program to give some foster youth $1k per month. Parent comment

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.

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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.

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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/

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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.
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