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Universes
Kelly
Posted Thursday, July 7, 2022
1y
ENFP
There’s a vastly overlooked factor that’s stoking record inflation: Rich people
Inflation is when prices are going up because there's too much money chasing too few goods. When there's enough goods for everyone, the price stays the same. But when there's not enough goods to satisfy demand, the prices go up as people compete to get what they want. So inflation is caused by 2 things: demand (total amount of money available and desire to spend) and supply (whether sellers can or will make enough stuff to satisfy demand). Inflation is always caused by both, but often favors one more than the other. Now to 2022. The US is experiencing historically high but not crazy inflation. Besides food and oil, which are greatly affected by global events right now, the majority of inflation in the US in 2022 comes from services and high-value items like laptops, cars, and home improvements. Those are the prices that are going up the most. Who's been buying all that stuff? The people who profited from business, stocks, crypto, and rising home prices over the pandemic. They are newly flush with cash and willing to bid up prices in a time where there's not enough stuff for everyone. They don't notice the price increase while lower income people feel it hard. I've heard people say US inflation right now is mainly caused by stimulus checks and child care credits, yet that money was spent long ago and overall contributed a miniscule amount of the money spent in the goods driving inflation. I'm not proposing anything; just noting the situation seems different from how it's presented in the news. I'd love or hear your thoughts on this, inflation, causes, or anything else. Comment below!
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