Is the Inflation we're experiencing in the US attributed to Democrat government overspending or to COVID-19?

[Physics-Man]

My Left-Wing friends, like my martial arts instructor, said that it's due to COVID-19, and said that the sooner everyone is vaccinated, the sooner it'll get better.

My Right-Wing friends, like one of the Soldiers in my Company, said that it's due to Democrat government overspending, which is causing the US dollar to be devalued.

So which is it?

Democrats

COVID-19

Both

[MCheetah]

Just look at other countries and how their economy is handling post-COVID, if you really want an answer to that. Especially the ones that aren't forcing you to put that poison in your body and believe in natural immunity, like Sweden and Denmark. Many of them aren't spending TRILLIONS of dollars, while also telling you you can't work if you aren't vaccinated and forcing massive layoffs of government workers.

I mean, we all knew the Biden administration would be a disaster, but who would've thought it'd be THIS bad? And within just ONE YEAR? They claim the money will come from overtaxing the rich and wealthy... The same rich and wealthy that controls Congress? THAT rich and wealthy? And they also said it won't affect middle-class workers, despite them having the IRS track your spending and tax you more as of 2023...

https://www.youtube.com/watch?v=U5PTFJ3Ulyc

[Avicenna]

The leftists are clueless (as usual) about economics and are just parroting Dear Leader Racist Joe Biden. Your conservative friends are correct- it's the combination of the Fed's printing press and the federal government running multiple trillion dollars deficits that is causing the inflation.

[spartan55]

Didn't a supposedly conservative former President run that deficit into the trillions?

[Avicenna]

@spartan55: Tell me which budget was passed via executive order.
But your misdirection is irrelevant- the point is that monetary policy and fiscal policy are both way too loose, and that’s why inflation has reared its ugly head.

[Avicenna]

And Democrats have controlled Congress and the White House for almost 11 months. The inflation is on them.

[spartan55]

Sure thing

[OlderAndWiser]

Did your leftist friends also blame Trump for covid-19?

[Physics-Man]

Some of them have.

[OlderAndWiser]

It's a psychosis of their own creation.

[Whatthefluff]

Don't you remember how people said, at the start of the shutdowns and pandemic, that it was going to be 10X worse than 2009? When so many people went on unemployment?
How about the supply chain problems? Not just the Panama Canal disaster, but China dependency.
Product has literally had to be destroyed die to these circumstances. Add in overpopulation and we are going down a poorly lit path.
If it was democratic spending that was causing this, we'd consistently experience problems under democratic presidents from the 60s onward. To say the least, I don't look forward to next year and beyond. I work in restaurant, and maybe the one I work at will cut their payroll because of society's circumstances. That's why I'm making an effort now to stock up on pasta, canned vegetables and anticipate the worst.

[PinkMichae]

Not all democratic presidents have made bade decisions that have added to the inflation. But when Obama was president the gas prices were high too. I remember when I lived in California during Obama the lowest gas grade got to over $5/gallon.

The pandemic has also added to the problem. But this democratic administration that came in made it worse.

[normalice]

democrats haven't actually done anything yet except the American recovery plan, which mostly only helped with COVID, and even then fell short on a lot of fronts thanks to Manchin. Republicans have stopped all attempts by democrats to do anything at all, including addressing inflation. Because they want Biden to fail so they get stuff to talk about leading up to the 2022 elections (since their own merits are out of the question). Did you know that Biden's nominations aren't even all confirmed yet thanks to republicans freezing them up in the senate? A thing that is normally finished before a president is sworn in wasn't even started until after 1/6. They madly want Biden to fail and don't care if it costs us everything to make that happen.

[BCA6010]

Your martial arts instructor is a few fries short of a happy meal.

The Democrats alone are not at fault for overspending; we've been running in the red for over two decades, even though they seem completely apathetic towards the damage it is causing.

[BeMuse]

Money creation by the Fed and reckless federal government spending by a Democrat majority is deflating the value of the US Dollar, while simultaneously Communist/NWO Democrats in state politics and business are restraining the economy in their states to disrupt supply chains and create artificial supply shortages. In short the Democrats and their allies are sabotaging the American economy, because they are loyal to China/WEF/Nazis and they are bringing war on the American people.

[Anpu23]

The primary source of inflation is a multiple sets of reasons. One is the stimulus checks, another is the higher wages, but ultimately it is both more money in the system and higher costs for goods and labor. Product shortages and of course shipping issues.

[sawno]

Spending, . making it undesirable to work and paying the unemployed so much that employers can't compete without bumping their prices up. So 100% the democrats at the moment, and to some extend trump at the end of his term.

[ShadezMcgee]

Both, if we want to be real. Those stimulus checks issued during shutdown was a contributor and then the debt ceiling and infrastructure passing didn't help either. Pretty sure tapping into our oil reserves will haunt us too.

[ShadezMcgee]

Oh yeah, and then the unemployment collection was another doozy that those dipshits practically made a better incentive.

[Soteris]

The global economy is fucked up because of Covid, add to that the fact that USA suffered a recession and the job market is wonky and its completely understandable that the government allowed higher inflation so that the economy can find its feet once again.

Also, Government spending during the recession and recovery would probably lower the inflation rather than increase it. Its the secret sauce behind USA's golden age if you can remember.

[Avicenna]

Oh, Genius Soteris, please explain to US how increased government spending would LOWER inflation?

[Soteris]

@Avicenna If the government spends on projects that increases production or the service industry then that directly increases supply and lowers prices and thus inflation. Do I actually have to explain supply and demand to you?

[Avicenna]

LOL, Soteris , please enter the real world. That requires private investment, and Social welfare spending does not do that. Do you know how Sweden got wealthy?

[Soteris]

@Avicenna WTF is the difference between private and public investment? Its just money one way or another. Also how did Sweden get wealthy? Early industrialization, luck and government spending/ownership.

[Avicenna]

It wasn't socialism that made Sweden wealthy.

But here's what happens in Sweden in reality:
www.statista.com/.../

There's a huge difference in private and public investment, even where there are some state-owned companies.

[Soteris]

@Avicenna Socialism started to be introduced in Sweden as part of its economic model in the early 1900's. It is at the foundation of everything Sweden is today. As for investment, its just money. If the government invests into a project or a private individual does it the outcome is the same except that the private individual is unlikely to do it without personal benefits which undermines the eventual rewards of the project as it needs to go back and repay private investors.

[Avicenna]

Let me be a bit more clear: government spending does not increase supply; government spending is actually a driver of inflation. Private companies making investments and producing is what drives supply. That is not to say that government spending is all waste (certainly infrastructure spending isn't, among other things), but it does not drive supply. Governments and what investments they do make are not very sensitive to things like demand, price signals, or what the market wants.

[Soteris]

@Avicenna Dude.. Infrastructure spending is one of those things that can DIRECTLY impact production and services hence increase them. How blind can you be?

[Avicenna]

I can see the fallacies in your arguments, the ones you're too blind to see. Depends on what the infrastructure investment actually is. Yet that isn't what we've gotten in the COVID era, and, not coincidentally, inflation has increased. The US has chronic underinvestment.

[Avicenna]

And the infrastructure doesn't magically by itself "lower inflation". Economies are much more complex than that, especially when you have central banks running printing presses nonstop.

[Soteris]

@Avicenna Yeah, I am aware how badly USA is doing thank you very much. It is not a surprise to me how many bridges are in critical condition or the fact that you still have lead pipes for drinking water in houses in the year 2021. I am also aware of how "complicated" the economy is and why blaming it on printing money is a fucking stupid idea when you have a recession and global crisis.

I also know there are many ways you can both increase or decrease the inflation as well as what it could be useful for and what it harms. As an example, one of the most common ways a government reduces inflation is raising interest rates, I leave you to figure out why because frankly I can't be bothered explaining basic economics with you anymore.

That said, considering USA's fucked up infrastructure it is a very cost efficient way to drastically improve the production of goods and services around the country since it has been holding you back from your true potential thus far in the first place.

Not sure that is enough to single-handedly eliminate the inflation, or even if you would want to in this specific case, but either way it would help and is just an awesome thing to do anyway you look at it.

[Avicenna]

If your premise would be accurate, there would be production bottlenecks directly tied to the condition of the infrastructure (and there wouldn’t be much of any effect on services). That’s generally not the case. But deficits of multiple trillions of dollars means too much money chasing goods and services- inflation is primarily a monetary phenomenon.

[Soteris]

@Avicenna I mean.. Production is pretty much ENTIRELY based on infrastructure. Sure the simple version is "Supply and Demand" but its infrastructure that makes it all happen. There will not be any supply if the supplier can't procure what they need such as components, raw resources, water, electricity etc.. and likewise they can't sell it to the customer without roads, boats, airplanes and and means to communicate with the customer.

Infrastructure is the thing that ALLOWS for transactions to happen at any meaningful level.

As for inflation, sorry but you are just not qualified to have an opinion on this topic at this point. Government spending does not magically "create" money and as such does not directly cause inflation.

[Avicenna]

LOL, I'm eminently qualified when it comes to economics compared to you.

All infrastructure? Keep dreaming. As if manufactured goods' costs is entirely due to physical infrastructure (I'm sure you'll now claim labor costs are too!), let alone the cost of housing or the price of services. By your argument, there should be deflation when infrastructure is built or improved, yet, strangely, how often do we see that? And when we see deflation, is it also a monetary phenomenon?

[Avicenna]

And, by the way, when there's a spike in the price of raw materials, what's your explanation for that: e. g., the oil price in 2008? Did infrastructure go on vacation that year?

[Soteris]

@Avicenna Are you dumb? Like for real dumb? What is truly the difference between a major city and a cabin in bumfuck-nowhere? Infrastructure. The fact it impacts wages, house prices and production is INDISPUTABLE.

Also yes, "Infrastructure" did go on a vacation that year namely there was a disruption in supply because of things like invasions and revolutions. In other words there was a disruption in the supply infrastructure making the suppliers unable to deliver to the consumers. If the suppliers where still able to reliably supply the consumers then things would continue as normal.

As for inflation, there are many ways to either increase or decrease it. When you talk about infrastructure its a multiplier on production and services which goes into supply as well as enable consumers going into increasing demand. You can also change it in other ways such as increasing the interest rate I mentioned earlier.

As for when you see lower inflation? (deinflation is not a very good word to use for it)
Just look at any inflation graph. What is important to note however is that negative inflation is not very good for the economy, especially USA who has massive debts both private and public. As such most countries uses the fact that their GDP is growing (meaning inflation is lowering) to print more money which they can use to supplement the budget and keep inflation at a healthy level.

[Avicenna]

I hope your Streamen doesn’t catch on fire. You do know that there is existing infrastructure, right?

[Soteris]

@Avicenna "existing infrastructure" my ass. You mean like your collapsing bridges and water pipes made out of lead that poisons your drinking water? Besides, I would not be so proud of your existing infrastructure since even what you do have is notoriously bad to the point that even I have heard it from across half the known world.

[Avicenna]

Like a typical European Communist, you can't contain your primeval hatred of the US. I've acknowledged that the infrastructure in the US could use some improvement, but you just refuse to understand that your claims 1) don't take reality into account, 2) don't account for the complexities of production and getting products to market, and 3) are inaccurate.

[Soteris]

@Avicenna "infrastructure in the US could use some improvement". Dude.. While there are places in USA with somewhat decent infrastructure, the rest is literally on the same level as a 3rd world country and that is not an exaggeration.

[notwoke]

in the long run, nothing hurts the lower class more than "free money". for a decade or more now. the government has been printing money and charging low interest so the rich have been buying up assets with borrowed money and this is why stocks, gold and houses are now unaffordable for the everyday person. I've done pretty well myself, but the crash is coming

[BeenThereLovedIt]

Covid has hit the poor of the world harder than any other class. So the Plebs, the workers, lost a lot of numbers. Do the math, this is a resource (worker) shortage. It spans globally and logistically. Most first world countries are experiencing economic instability and inflation right now.

[AviatorTom]

I suppose you could say Both... teh main thing affecting inflation is a weak supply chain, caused in part by COVID-19 and government relief spending that makes it easier for people to leave their jobs than to work.

[exitseven]

Covid does not cause inflation. The mess with the supply chain is caused by lack of leadership, high gas prices are direct result of Biden's policies. You raise gas prices; you raise the cost of everything else.

[tartaarsaus]

Higher gas prices are barely controlled by the president

[sage2021]

If we follow the Chain of Command from the top down, well, sh*t always rolls downhill right? So it's coming from Biden and his handlers and being thwarted onto us. ☮️🇺🇸

[tartaarsaus]

For the most part COVID-19 and semiconductor crisis, because it is clearly what the data indicates. By far most of the inflation on a month-to-month basis and historically over the last year has been in sectors hit especially hard by supply chain issues and the pandemic.


It is what the data indicates and blaming the Democrats is kinda stupid. Then again, people blaming politicians for inflation in Western democracies is nearly always stupid.

[PinkMichae]

So blaming the high spending of this administration is stupid despite experts saying it causes inflation? Ok 👍

[tartaarsaus]

@PinkMichae

Lmao, if you read the financial news (such as Financial Times or WSJ) it becomes quite clear that many experts agree it is mostly market forces

[tartaarsaus]

And well, the data says it is mostly market forces

[Anonymous]

A little of both. Certainly covid has dealt us some upheaval but the democratic response to it is to dig the whole deeper. If the social bill gets passed there'll be no avoiding a recession I'm sorry to say.

[Hispanic-Cool-Guy]

COVID-19. America depends on many products from foreign nations and some of those nations still haven't dealt with Covid-19 and loss of jobs over there, so products aren't coming into the states in very large masses as pre Covid-19.

[joeldalton]

Your left-wing friends are idiots.

[Physics-Man]

He's a good friend, but I think he's well-indoctrinated and sees no wrong in whatever Democrats do.

[joeldalton]

So just start questioning him. So he says “inflation is due to covid-19”….. just go “how?”

[Physics-Man]

I usually rebut whatever he says, but interestingly he then goes off on tangents, or changes the topic, or otherwise just offers no rebuttals whatsoever.

He never criticized Biden during the botched Afghanistan withdrawal; it's like it never happened. But went on and on about how awful Trump was.

[joeldalton]

Typical

[Soleil7001]

It is attributed to Americans valuing ignorance above brains, and doing nothing new since the 90s

[BCRanger10]

I think it's both.

[jimmy2]

Its the biden regime

[jimmy2]

See the vote has it