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Stimulus from both Trump and Biden had a big effect on inflation no doubt. What’s not known is what would have happened. Without that.Summers was warning Biden that the two big stimulus programs he was about to employ was not a good idea. Not a good idea because doing that would probably cause rampant inflation! Summers didn't have a problem with Trump's fiscal policy because it was needed during the pandemic shut down.
What Summers was pointing out (and you're trying desperately to ignore!) is that when Trump was doing stimulus it was in the middle of the pandemic shut downs...when Biden did it we were coming out of the shut downs. He was in favor of Government spending when things were shut down but was intelligent enough to know what a huge influx of Government spending would do when things were open again.Stimulus from both Trump and Biden had a big effect on inflation no doubt. What’s not known is what would have happened. Without that.
Had Biden not dumped money into the economy as Trump did the economy might very likely cratered.
What we do know is that we have recovered better than every other economy on the planet
That’s what I said stupid
Spending trillions of dollars when you've shut down the economy with lock downs isn't inflationary.
Inflation is caused by too much money chasing too few goods. During the shut downs the Private Sector wasn't generating money. It made sense for Government to step in and inject money into the system to keep people afloat when they weren't working for long periods of time.Actually it is, because so much of that money is just sitting around waiting to be spent.
See this nice big jump in the personal savings rate? That is because the Govt was sending money directly into the bank accounts of most Americans and they had nothing to spend it on. So it sat there till they did, then we had too much money chasing too few products...the very definition of inflation.
Inflation is caused by too much money chasing too few goods. During the shut downs the Private Sector wasn't generating money. It made sense for Government to step in and inject money into the system to keep people afloat when they weren't working for long periods of time.
What Summers correctly pointed out is that huge stimulus programs as the economy was recovering from the shut downs was no longer needed and ran the danger of causing rampant inflation. You already had pent up demand. All that money Government KEPT sending to people meant that you had demand paired with large amounts of money and a supply chain issue that limited goods! That was what drove inflation from 1.4% under Trump to over 9% under Biden. Summers was spot on with his warnings and Biden and his gang of idiots didn't listen. The American people paid the price for that stupidity.
Biden made it MUCH worse! Inflation shot from 1.4 all the way up over 9%, Harpy! That's cost Americans tens of thousands of dollars per family. That's what happens when ideologues run the country instead of practical people.Yes, Biden made it worse, but to pretend all that money that was sent out in 2020 that just sat there not being used, waiting for something to use it on, did not also influence inflation just highlights you as a mindless partisan drone.
It should also be pointed out it was Trump at the end of 2020 that was pushing for even bigger checks to be sent out than the Dems were willing to do
Biden made it MUCH worse! Inflation shot from 1.4 all the way up over 9%, Harpy! That's cost Americans tens of thousands of dollars per family. That's what happens when ideologues run the country instead of practical people.
That's what happens when you're doing something that's never been done before, Harpy! Government forced massive shut downs. Government realized it needed to keep people afloat while they couldn't work and they needed to do it fast. So you've got checks going out to everyone...even those who didn't need them. How else do you suggest it should have been done?I agree with you that Biden made it worse.
But you are too much of a mindless ideologue to admit your beloved party and POTUS had a large hand in it as well.
All that money sent out with no attention to if it was needed or not. My wife and I got the first round of checks as we had not filed our taxes yet so we still qualified. We were both working the whole time, in fact my wife as an RN was getting all the OT she could handle as well as extra hazard pay for working in a COVID unit.
We did not need the money from the Govt, yet they sent it anyhow with a nice letter from Trump himself telling us it was all his idea.
That's what happens when you're doing something that's never been done before, Harpy! Government forced massive shut downs. Government realized it needed to keep people afloat while they couldn't work and they needed to do it fast. So you've got checks going out to everyone...even those who didn't need them. How else do you suggest it should have been done?
Sending out checks AFTER the shutdowns were over was what caused that inflation spike.
www.cnbc.com
After the shutdowns? Trump wasn't in office after the shutdowns, Harpy. He was in office DURING the shutdowns! That was Joe Biden sending out checks after the shutdowns were over.And this is why we are 34T in debt, each side gives their side a free pass.
Then thank Odin Trump did not get his way and send out even bigger checks after the shutdowns.
Trump calls Covid relief bill unsuitable and demands Congress add bigger stimulus payments
President Trump, in a stunning tweet, called the $900 billion Covid relief bill passed by Congress an unsuitable "disgrace."
After the shutdowns? Trump wasn't in office after the shutdowns, Harpy. He was in office DURING the shutdowns! That was Joe Biden sending out checks after the shutdowns were over.
The shutdowns were over long before Jan of 2021.
All were done by Aug of 2020 if not sooner.
Yet in Dec of 2020 Trump was screaming for even bigger checks to be sent out.
nashp.org
2021 COVID-19 State Restrictions, Re-openings, and Mask Requirements - NASHP
This chart describes each state’s initial stay-at-home order, penalties for noncompliance, dates for phased re-openings...
This article came out yesterday. It exactly describes how Biden fucked up the economy.
Larry Summers sends stark inflation warning to Joe Biden
Larry Summers is urging Washington to tap the brakes on stimulus — or risk unleashing a serious burst of inflation.www.cnn.com
Recovery is only if you can afford to live afterwards,Stimulus from both Trump and Biden had a big effect on inflation no doubt. What’s not known is what would have happened. Without that.
Had Biden not dumped money into the economy as Trump did the economy might very likely cratered.
What we do know is that we have recovered better than every other economy on the planet
