• dragontamer@lemmy.world
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    5 months ago

    Dude, COVID19 dropped prices across the board. How cheap were Hotels? Meat? Do you remember the $2 gas prices?

    That grey line? That was deflation happening for one month and then every politician in the country stepping on the “inflation button” at the same time. It didn’t matter if you were Republican or Democrat, literally everyone got together in a couple of days and said “Yeah, lets print $1.5 Trillion bucks”.

    THIS is what caused the inflation. M2 (aka: the amount of money in the USA).

    And every politician hit the “Make more M2 / Make more money button” because holy shit COVID19 is fucking our economy, we’re about to fall into deflationary spiral somebody please save us mode.


    Job losses caused inflation, because politicians got together and did something about it. And they did it so quickly that most people seem to have forgotten it despite it only being 4 years ago and you’re fucking up the order of history. COVID19 shut things down, and then came the inflationary stimulus / law changes