Celebrating the Inflation Reduction Act

@Burnley123 inflation is a solution to rising buying power and shrinking demand for more jobs.

@Burnley123 Inflation is first and foremost a monetary matter. The policy of aggressive utilization of stimulus funds during 2021/Covid is what has contributed. Also, HR policy re vaccination has decreased supply chain output decreasing supply raising prices.

@Roundandroundwego It can be a result of rising buying power and shrinking demand for more jobs.

It's not in this case, given that wage rises are negligible (and much less than inflation). It's partly a result of debts incurred during covid devaluing western currencies, the Ukraine war increasing energy prices and high corporate profits.

@Burnley123 Increasing wages as well. Compensation and benefits is the largest expenditure of most businesses. Pushing to increase wages and people are surprised when that is passed along to the consumer?

"@Burnley123 Burnley123 · 36-40, M
@sunsporter1649 I'm a postmodernist. I believe whatever my chosen media sources tell me.
I have no standards for evidence or objective truth."

@NatureGuy77
I agree with this as a major factor.


It took me a while to get what you were saying but you seem to be arguing that mandatory vaccinations decreased output and led to a scarcity of resources, thus increasing price (more demand for less supply). If you are not saying this, please correct me.

Can you point to evidence that shows vaccination policies decreased output relative to demand? I'm just sceptical that vaccinations reduced supply that much. Lockdowns did but then the demand was very low at that time anyway.

@Burnley123 You're gonna need a bigger shovel to spread that bullschiff.

@sunsporter1649
I have said this before but I was taking the piss out of you. The quote you saved that 'owned' me is actually mocking you. It was a shit joke tbf.

@Burnley123 https://www.sfchronicle.com/bayarea/article/With-vaccine-mandates-looming-companies-are-16536621.php

@NatureGuy77 Thanks for sharing. I'll read it now.

@Burnley123 Perhaps this shovel is more like what you will need to spread that bullschiff.

@NatureGuy77 It's an article that provides plenty of evidence of worker shortages caused partly down to vaccine mandates. It's a credible source too. A few issues though:

1) It doesn't provide evidence that this significantly reduced supply and increased inflation. It may have done (there is plausible causality) but it's not in the article.
2) The UK (which had/has a far higher vaccination rate) now has greater inflation than the US.
3) Blaming HR policy was reducing the workforce an arguable point. Would workers have wanted to stay in jobs next to unvaccinated people? HR depts ultimately represent their own companies' interests and are incentivised to increase profits (and supply).

You have some decent arguments and you are polite but I'm not convinced that this hangs together.

@Burnley123

@Burnley123 If monetary policy didn't accomodate these effects then the inflation would have been truly transitory. As it turns out, monetary policy has not only enabled durable problematic inflation, but has established an inflationary psychology that will be difficult to eradicate without a "hard landing" type recession. The situations in Ukraine and China causing energy supply shocks and supply chain shocks sure isn't helping, but it is what it is.

This too shall pass.

@Burnley123 I just saw. This was a hypothetical question, asked almost 1 year ago, by the SF Chronicle. The primary question was: will supply be affected by POTENTIAL employee firings over vaccine mandates at the Federal level?

The answer, a year later, is no. And if you think about it, when your supply comes from China, how are vaccine mandates in the US make a difference?

@irishmolly72 There is no evidence for this US monetary policy is accommodation inflation.' How? This hasn't answered any of the questions on my thread. I don't think you have a handle on this at all

@Burnley123 Yeah, we know, 8.5% inflation is really 0% inflation.

@Burnley123 Operation twist, QE, negative interest rates, balance sheet explosion. That's how. This shit's gonna hit the proverbial fan.

@irishmolly72 Without QE or low interest rates, there would have been a huge crash due to collapse in money supply. The Austrian school laissez-faire solution would lead to further chaos and instability, as it did in the 19th century and early 20th century when it was in vogue. It's just an evidence free ideological play that government is always the best and free market is always best.

@Burnley123 Yes, the massive imbalances we have created are healthy and the way to go.

@irishmolly72 I didn't say they were. It's an artificial economy and an abstraction from the market economy. designed to produce stability for profits. The solution isn't 19th century capitalism!

@Burnley123 The solution is a gradual, but unwavering, return to balance in both monetary and fiscal conditions. We were getting much closer to that in the 90s. Clinton, Gingrich, Larry Summers and Alan Greenspan helped provide that.

Even in Jimmy Carter's time we had the lowest debt-to-GDP ratio in modern US history. Yet inflation surged. Why? Lack of monetary discipline.