With the advent of dictator Donald Trump and his dangerously unstable, violent, egomaniacal personality, the resistance from civic society has not risen to the deadly challenge either quantitatively or qualitatively.
Giving this much money to low-income workers has a disproportionate impact on inflation
That’s not what the data seemed to say - every actual study showed that inflation came from supply shocks, and then companies using that excuse to raise prices.
What DID pose a problem was you saw people not scared to starve if they lost a job. And that was causing big worries for employers, and that’s what couldn’t continue.
What data? I have a hard time believing that people didn’t increase their spending in response to increased disposable income. Food especially since food stamps could only be spent on food. If you post your source, I’ll objectively review it.
When demand outstrips supply, people began bidding. A 1% difference between supply and demand leads to a more than 1% change in prices.
Any conclusions would also need to account for the impact of high unemployment benefits on domestic production. I sure as hell quit my job because of these benefits. It was a no-brainer; I more than quadrupled my disposable income overnight.
That’s not what the data seemed to say - every actual study showed that inflation came from supply shocks, and then companies using that excuse to raise prices.
What DID pose a problem was you saw people not scared to starve if they lost a job. And that was causing big worries for employers, and that’s what couldn’t continue.
What data? I have a hard time believing that people didn’t increase their spending in response to increased disposable income. Food especially since food stamps could only be spent on food. If you post your source, I’ll objectively review it.
When demand outstrips supply, people began bidding. A 1% difference between supply and demand leads to a more than 1% change in prices.
Any conclusions would also need to account for the impact of high unemployment benefits on domestic production. I sure as hell quit my job because of these benefits. It was a no-brainer; I more than quadrupled my disposable income overnight.
https://www.project-syndicate.org/commentary/transitory-us-inflation-reflected-supply-disruptions-and-sectoral-shifts-not-aggregate-demand-by-joseph-e-stiglitz-2023-11