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All Mixed Up

(597 posts)
16. I don't think you understand how inflation works.
Wed Apr 3, 2024, 01:05 PM
Apr 3

And that's okay. Sometimes we don't have a full grasp of how things operate.

You're saying that attacking runaway inflation in the food industry will lead to less rosy overall inflation numbers.


This literally makes no sense. You don't attack Inflation by giving out more money. That just increases Inflation and costs continue to rise significantly.

So, what you're proposing is just going to make things more expensive, including groceries.

You're not doing anything to combat the rising costs. This is where you seem confused.

A stimulus or vouchers will only make the price of goods go up as more money is pumped into the economy. That's a big reason Inflation surged in the first place: not only were Americans given multiple stimulus checks, but the economy essentially shut down, so Americans didn't spend as much in 2020 and had a significant amount of disposable income (also a result of millions having rent freezes so they weren't paying rent + student loan freezes so they weren't paying on that too) once everything opened again.

They then pumped a lot of money into the economy, which kicked up demand and that generally leads to higher prices.

Giving Americans another stimulus is only going to make things more expensive (including bread!) Then you're in a perpetual cycle of giving more money out to make up for the rise in costs and it is not sustainable.

You should look into Venezuela's battle with hyperinflation because what you're proposing is a contributing factor to their continued situation.
Stimulus feeds inflation (again) and GOP will scream "Communist Socialist Pinko!" bucolic_frolic Apr 3 #1
Inflation is down, the economy is chugging along nicely, RW is pushing economic scary stories Bernardo de La Paz Apr 3 #2
Many, many people are squeezed now splat Apr 3 #6
Let 'em scream splat Apr 3 #3
If you reply to a post like #1, please reply to that exact post rather than to the OP Bernardo de La Paz Apr 3 #4
IIRC, a chicken in every pot was Hoover's re-election slogan. Aristus Apr 3 #5
Dates to 16th century Henry IV splat Apr 3 #7
Yes. A chicken in every pot and a car in every garage. All Mixed Up Apr 3 #8
Republican. An ad by Republican businessmen. Hoover didn't say it, but Ds used it against him Bernardo de La Paz Apr 3 #9
Part of the problem is you go to the grocery store every week or more, CrispyQ Apr 3 #10
These measures would likely be counterproductive at this point. All Mixed Up Apr 3 #11
How about Biden embraces this problem? splat Apr 3 #12
I think you responded to the wrong person. All Mixed Up Apr 3 #13
I wanted that to be at the end splat Apr 3 #14
I don't think you understand how inflation works. All Mixed Up Apr 3 #16
I'm not wedded to food vouchers splat Apr 3 #17
All my original post said was that vouchers or a stimulus would likely make inflation worse. All Mixed Up Apr 3 #18
We paid over $12 dollars CDN CANADIANBEAVER69 Apr 3 #15
I hear prices are really bad in Canada right now. All Mixed Up Apr 3 #19
The prices are all over the place. Eating healthy is expensive CANADIANBEAVER69 Apr 3 #21
I just paid $8.54 USD onethatcares Apr 3 #20
Similar pricing it seems CANADIANBEAVER69 Apr 3 #22
Latest Discussions»General Discussion»A chicken in every pot -...»Reply #16