In fairness, this article was put out in July of 2020. It made some good points and really was reasonably accurate considering that we did not enter an inflationary period for nearly a year and a half.
As of July 2020 the money pumped into the system had been:
- March 6th 2020, Coronavirus Preparedness and Response Supplemental Appropriations Act - 8.3 Billion
- March 18th 2020, Coronavirus Response Act - 225 billion
- March 27th 2020, CARES Act - 2.2 Trillion
- April 24th 2020, Paycheck Protection Program and Health Care Enhancement Act - 483 Billion
Had we stopped there things would likely have been different. Instead these happened.
- March 15th 2021, Consolidated Appropriations Act - 920 Billion
- March 15th 2021, American Rescue Plan - 1.9 Trillion
Had those economists been informed that only 9 months later almost another 3 trillion dollars would be injected into the system I suspect they would have come to different conclusions.
Possibly, although I’ve seen the idea that printing trillions (aka MMT, Modern Monetary Theory) would not lead to inflation bandied about (haven’t used that term before ) for a while now.
Inflation is here. MMT is wrong. Hopefully it will stay wrong.
In 2008, following the bank bailout, the Fed started in on what it euphemistically called QE, Quantitative Easing - printing money. That went on for what, a decade? But it was a relatively slow burn, I think about $50 billion a month, if I remember correctly.
I think the fact that QE didn’t kick off inflation fooled a lot of economists, hence MMT.
I only really understand dolphinomics but it seems something of a miracle to me that the government could create as many value-tokens as they did without them becoming quite worthless. Seemed sorta like Magic Money Tree stuff to me – but eventually the party ends, as it always does.
One reason it didn’t get out of control too quickly – and also applies for Quantitative Easing – was that most of the billions didn’t go directly to consumers who could spend them on common commodities ‘goods’ A high percentage when to corporations/investors, who ‘saved’ their money and acquired ‘investments.’ It didn’t in the end put much more ‘currency’ into ‘circulation’, so it didn’t make for too much money chasing to few goods. But more recently it is making for too much currency chasing too little labor, and too little currency chasing too little of some other commodities and services such as petrochemicals, rare earth metals and transportation services, supplies for which are not quickly turned on and off.
That makes sense. The taxpayer went even deeper in hawk to the plutocrats. Good, the world turns on the same old grease.
At least this piece of it is stable, no? A dependable relationship. We should trust the elites to keep the world in balance. And dolphins follow the tides.