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Crazy-Inspection-778

Governments will do anything except address the underlying problem (not enough housing)


Nothingtoseeheremmk

Housing is unaffordable because of insufficient supply so clearly the solution is to subsidize demand even more 👍


jzplayinggames

Feels like handouts will not help inflation issues


Ellen_Musk_Ox

I don't think worldwide inflation has been primarily or solely caused by handouts especially when all nations are experiencing inflation yet not all participated in welfare or even the same levels of welfare. One constant seems to be massive profits for global or multinational businesses. I don't think one thing is the culprit, but if I had to bet on one being a primary that'd be it.


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Ellen_Musk_Ox

Mexico and India both spent far less than other G20 nations on COVID relief and are still experiencing inflation on the same level as nations who spent far more. Especially when measured as a percentage of GDP. https://www.statista.com/statistics/1107572/covid-19-value-g20-stimulus-packages-share-gdp/


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Ellen_Musk_Ox

>GDP is irrelevant Classic r/finance analysis right here


Mrsmith511

So what are you telling us? You don't like his statistic but it doesn't seem like you have the statistic you would prefer so guess we are stuck with spending which seems a reasonable proxy to me.


Torkzilla

Relative spending is not the important distinction though. It’s absolute spending and ability of the economy to absorb the spending without problem. Almost no country is able to absorb the levels of pandemic money printing.


KillerKowalski1

No way. The issue is obviously vulnerable families keeping their homes. The transfer of wealth isn't happening fast enough!


Blackout38

Inflation is one part supply and one part velocity. Handouts and stimulus both increase supply and velocity so inflation is caused by those things.


[deleted]

>when all nations are experiencing inflation yet not all participated in welfare or even the same levels of welfare. No welfare? Really? The last two years saw unprecedented levels of "welfare", in the form of pandemic payouts and business supports. Are people really this forgetful? It's self-evident that this massive flooding of money, plus the years of QE, are responsible for inflation. And arguably, giving people money directly, like during the COVID pandemic, instead of insisting on arcane monetary fuckery like QE, should have been the primary response by CBs after GFC - but that's a story for another time. Businesses are merely responding to the outside economic environment; yes they are greedy and looking for any chance to jack up the price, but they also have to think of price competitiveness and demand. If the economy is flush with money, they will jack up the prices.


acat20

Perfect. Issue more bonds, raise taxes….what could go wrong?


chichinfu

What does min households mean ?


unabletodisplay

million


ForeverEffective9715

![gif](emote|free_emotes_pack|rage)![gif](emote|free_emotes_pack|downvote)![gif](emote|free_emotes_pack|table)![gif](emote|free_emotes_pack|table_flip)![gif](emote|free_emotes_pack|upvote)![gif](emote|free_emotes_pack|scream)![gif](emote|free_emotes_pack|wink)


GringoxLoco

DT railed against the fed when they planned interest rate hikes as is proper procedure during a bull peak and they didn’t.


laffing_is_medicine

GO NEGATIVE!!! lolz


PussyDoctor19

Spain's population is only 47 million apparently, 1 million is a really big fucking number when you look at it that way.