Inflation started increasing under Trump's free money giveaways.

You posted a link and quoted me but made no mention of what You are saying. I read the article and it is unclear exactly why you quoted me or why you posted that article.

You are correct that trump caved to Dem demands to start throwing cash around when covid started. I would argue it was way too much right when the pandemic stated, but I would also argue the throwing around money years after covid started, which is still going on today because the size of government never went back down to pre-covid levels, is completely unacceptable.

Corporations are sitting on 6.9 TRILLION dollars in cash. Your trickle down theories are bullshit. It's been trickle up for decades now.

Which is why so much stock buybacks happens .
But baham think stocks going up = gdp goes up lol…..

Instead of using that money and actually providing goods and services that will actually make gdp go up…

Ah yes, it's not really Trump's fault, he's just that weak and poor as a negotiator. Therefore we should elect him again.

that "cash" is short term loans to the government, other companies, or banks.

which means it's already deployed cash, actively doing it's thing in the economy.

or do you think they have 6.9 trillions in actual paper cash?

inflation started with the second huge giveaway in 2021 which republicans opposed as the economy as reopening.

but democrat states weren't reopening well enough so the Dems, without republican support, passed an outrageous amount of deficit when the reasons to do so didn't exist (unlike 2020 where it was fully bipartisan).

the American rescue plan act of 2021 passed with 0 republicans voting for in the house , and 0 in the Senate, and inflation came after that.

2 trillions to let democrats stay at home double masked playing Farmville while pretending to work remotely a couple more months, even with a good vaccine available and with life fully resuming in all states governed by normal people

Inflation always has a lag from new money being put into the economy. Trump's unnecessary injection would have led to some inflation even by itself, and it set the precedent for the later payouts.

guys! guys! corporations do not actually have the physical dollar bills so them having 6.9 trillion in "cash" IS JUST LIKE YOU HAVING IT!! it all trickled down!! don't you understand?!?!?!?!! just say you have it!!

+1
Inflation takes around 18-24 months to impact the real economy for obvious reasons .
Luciom like baham , blaming Biden for 2021 -2022 inflation doesn’t add up .
But that is irrelevant for a certain part of the crowd .

+1

It's already invested yes. Not idle. Already generating effects in the economy. Already trickling down.

Which one? The one voted by every single democrat in the Senate?

Which precedent? That when the economy collapses you do deficit, and when it stops collapsing you stop doing deficit? You mean the precedent of 95% of macroeconomics since Keynes ?

The 2020 deficit as per any macro book, was necessary to avoid economic collapse becoming persistent.

From 2021 on it was excessive and caused inflation, because the economy didn't need massive help anymore

I blame the democrats not "Biden", as we tried to explain you many times, it's not potus that votes expenses, it's congress.

And the atrocious, completely indefensible act of splurging money over an economy that was already easily recovering by itself just through reopening, and needed no fiscal help anymore, was in March 2021, inflation came later.

Yes so if u start spending the money not needed in 2021 u should feel that inflation around 2023 ….
U speak about inflation in 2021-22 .

The only inflation that can be immediately transfer upon are assets prices and asset prices has nothing to do with gdp .

Without those deficit the American economy would of been in a recession a long time ago .
Now was is worthwhile to prevent a recession ?
I got no particular opinion about it but to say the economy didn’t need it is not true.

Berkshire (Warren buffet company) have around 100 billions dollars invest in t-bills, apple has over 160 billions in cash probably invest in t-bills , treasuries receiving 4-5% interest just sitting there ?

How is that in anyway trickle down to the poor and in the economy I wonder ….

https://www.barrons.com/amp/articles...rates-9ad116ec

No it can be just a couple of months when given as cash to consumers with high propensity to consume and otherwise low on cash.

Unclear why you think it would lag that much , if you give money to people who already spend their whole income (like most middle-low americans do), they spend it immediatly and price pressure comes in 3-6 months max, where supply is tight. See housing, restaurants and so on.

There is immediatly extra money chasing the same goods and services available before. That's inflationary immediatly.

It's things like tax breaks to the wealthy that aren't necessarily inflationary, because those increase savings of people who already don't spend all their income.

proof? american gdp grew 5.9 in 2021, 1.9 in 2022, 3.4 in 2023.

There is a lot of room from that to 0 that isn't a recession, but which is less inflationary.

And btw if a recession is necessary to keep inflation at target (which imho it wasn't before), you get the recession not the inflation if leaders aren't populists.

Now the recession will be more necessary and nastier because of the accumulated inflation that has to go away is a lot higher. Unless of course leaders just give up on all monetary stabilization promises and then the USA become a banana republic.

Yes and those t bills are how the government is allowed to operate do you understand that? if the gvmnt sequester that money and spends it, then in order to sell it's t-bills it has to pay higher interest because there is less capital around to be lent, is that part clear to you?

Without that cash there available to go into tbills, tbills would cost more to the government (= to taxpayers), and interests are already over a trillion per year. Do you want that to become 1.5? 2? that requires huge cuts to government consumption, to get the money to pay higher interest. Or even more taxation, in a self-defeating loop that get's you again to the banana republic stage.

I will tell u a secret , that money existed far longer than yesterday , when interest rates were at 0-1% …..
Mis allocation of capital is real phenomena .


Again how does it helps the poor ?
How it trickle down ?
who pays the bill at the end ?

The annual deficit is around 6% of gdp , there is your gdp growth.

https://fiscaldata.treasury.gov/amer...-and-surpluses

https://fred.stlouisfed.org/series/FYFSGDA188S

Fwiw I never understood why people never calculate deficit in real gdp growth but anyway that is for another day .

Point is , when government borrow money to spend in the economy it obviously help the economy to go higher .

And historically the US deficit to gdp is still pretty high.

What u speak of is just a quick burst of inflation IF everyone spend all the money at the same time and it would just be very temporary AND if no sellers would have much surplus inventory in their stores for example.

But you will still have higher inflation on a longer period due to a natural economic cycle.

U give again tons of money to people, oil goes to 125$ for 6 months for example
What will happen?

High oil prices -> higher fertilizer prices -> higher cost base foods (cereals,grains etc) -> time to grow -> with that base food feed cow, pork, etc -> they grow -> etc.
that cost is transmitted on a much larger time frame then 3 months and will be felt , even after all the momentary spur of money consumer had been spend , a year or 2 later in many different field of consumption .

So yes inflation lag by a fair margin in the real economy .


And no , rich people spend that money but u see the inflation right away since they buy financial assets and that is immediate ( no production needed in buying shares) .
Yes rich spend and u see inflation in financial asset since its pretty hard to spend millions of dollars on goods and services when you already have everything u need from the real economy.
But that inflation isn’t felt in the real economy , doesn’t mean it doesn’t exist tho .

So what did we see in 2020 ?
Every financial assets went high quickly (2020) and high inflation started end 2021 through 2022 in goods and services (18-24 months) .
What a coincidence isnt ?

And yes as long us government creates deficit, inflation still will be there and sustain the economy .
Fwiw I’m not saying is a good thing now.
Too much of something is has bad as too little .

Keynesian deficit spending is supposed to help when there is stagnation due to lack of demand. It can't do anything when it's due to a lack of supply, which is what happened in 2020. I think even the first payment was unneeded and didn't do anything except cause inflation.

In 2020 there was lack of demand , massive lack of demand. Lack of demand in sectors to the point they went close to 0. The lack was partially artificial (legal mandates to close down) and partially panick.

Even with 0 lockdowns for example fewer people would have used planes, restaurants, all entertainment venues. And not going to the office (or reducing that) reduces demand for a lot of things from clothes to gasoline to many others.

With no CARES act how exactly do all the laid off people in the sectors collapsing cope? basic unemployment insurance isn't enough when the scale of the unemployed is that high and there is huge uncertainty about when things are going back to normal. that's keynesian intervention 101, increasing UI and saving the sectors from a collapse from which they can never recover without intervention, to avoid hysteresis (the lack of return to normal because your burnt productive capacity in the downturn).