1097
Government money (lemmy.zip)
submitted 2 years ago by to c/memes@lemmy.world
124 comments fedilink hide all child comments
 
you are viewing a single comment's thread
view the rest of the comments
[–] 62 points 2 years ago (17 children)

Hell, it doesn’t even have to be UBI, just some assistance during Covid would’ve been nice. That one random $1500 check was treated like it was a king’s random and it was probably less than one month’s rent for alot of people.

  • permalink
  • fedilink
  • source
  • hideshow 17 child comments
    •
  • [+] -16 points 2 years ago (16 children)

    Some will argue (and I do not know if it is true) that that is what triggered inflation now. Well, that, plus business loans during covid.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 16 child comments
    •
  • [–] 59 points 2 years ago (7 children)

    Others will argue that corporate greed was the cause of inflation, and they'd point to plenty of companies making record profits while raising their prices.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 7 child comments
    •
  • [+] -30 points 2 years ago* (5 children)

    Corporate greed always existed. Thus, it is not the one that triggered inflation.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 5 child comments
    •
  • [+] 17 points 2 years ago* (last edited 1 year ago) (2 children)
    [deleted]
  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 2 points 2 years ago

    No need for ad hominem attacks. Profiteering has always been a part of inflation but it's never the cause or the underlying reason that inflation occurs. There are a host of things that go into what drives inflation but during Covid it was the Fed dumping tons of money into the system and post Covid it was wage inflation and low unemployment. Do corporations still use predatory pricing? You bet. The only thing that will really work now is either very deep recession or a depression.

  • permalink
  • fedilink
  • source
  • parent
  • [–] -2 points 2 years ago

    Wow, just wow. It is OK to disagree, but what’s wrong with you to just start doing personal attacks out of blue? Do you consider yourself a good human being? If yes, look at your post again.

    As for the topic of discussion, you have to learn the meaning of the word “trigger”. Also, your analogy does not stand at all, because I was not claiming that corporate greed is good, just that it is not the trigger.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 27 points 2 years ago* (7 children)

    Those people are wilfully ignoring the 3 trillion pumped into the market to prop it up when it crashed in 2020, which absolutely dwarfs the pittance handed out as stimulus.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 7 child comments
    •
  • [+] -15 points 2 years ago (6 children)

    That’s different. That money is the federal reserve printing, well, money and exchanging it for existing securities. They can always get money back in exchange for those securities if there is money oversupply. It is reversible.

    When federal government spends more money than it has, there is no reverse mechanism, because the government does not get securities in exchange of new money it introduced to economy.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 6 child comments
    •
  • [–] 3 points 2 years ago (3 children)

    Don't forget Money Center banks like BofA went from 10% fractional reserve (they needed to theoretically have 10% of the amount they were lending) to 0%. That's just a fancy way of saying they can print money by fiat just like the Fed does. The Fed is weird though because it may as well be owned by the banks as well, but the head of the Fed is appointed by the president.

    There are arguments though that given our somewhat teetering system that they did some "goodish" things to prevent all out collapse. Their actions have not changed anything systemic though, and the system it's arguably the problem.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 3 child comments
    •
  • [–] 0 points 2 years ago (2 children)

    I am not quite sure how big the impact of it is on inflation. I thought even before, banks could just go and take cash from federal reserve (borrow), essentially unlimited amount and that counted as reserve. So, from practical point of view, if they saw that they can lend the money with foot risk/benefit profile, they could always do that. And they would not have to pay rate for the money which is in reserve. So, not quite sure if inflation depends on this much.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 1 point 2 years ago (1 child)

    I think this is a reasonable argument. A lot of it seems to just have been companies using inflation as an excuse to raise prices causing more inflation.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 1 child comment
    •
  • [–] 1 point 2 years ago

    Company does not need excuses. It needs explanation for shareholders, to show that they adjust the price to have maximum profits. Nearly no customer will look at the increased price of the product and think “it is expensive, so I can’t afford to buy it, but they have good excuse why it is expensive, so I will buy it anyway”.

  • permalink
  • fedilink
  • source
  • parent