Personally, I'd like to abolish the stock market altogether. But this is an attractive, actionable policy

you are viewing a single comment's thread
view the rest of the comments
[–] 1 point 5 months ago (2 children)

$1.4 trillion injected to a consumer base would cause mass inflation. We've already seen this with the "stimulus" checks. Money isn't real; the resources would have to be there in the first place. If they aren't, it will just cause an increase in demand without the actual supply, thus raising prices.

  • source
  • hideshow 2 child comments
  • [–] 4 points 5 months ago* (last edited 5 months ago)

    https://mitsloan.mit.edu/ideas-made-to-matter/federal-spending-was-responsible-2022-spike-inflation-research-shows

    This is the study you may be referencing to. It does not say what you think it does and instead puts the half the blame on Federal government spending. It does not break out this as just the stimulus sent to the average person.

    https://www.bls.gov/opub/mlr/2024/beyond-bls/stimulus-checks-world-events-or-import-shortages-what-causes-import-inflation.htm

    Here we see an entirely different conclusion.

    "the authors find that world import price inflation was mostly driven by global forces rather than country-specific supply shortages or demand surges."

  • source
  • parent