this post was submitted on 07 Jun 2024
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actually, the inflation that's happening is because the US government keeps printing money just to dump into the stock market every couple of months
At the beginning of the pandemic when the stock market did a 90 degree drop, the government passed that one bill that printed $2,000,000,000,000 per day and dumped it into the stock market to keep it afloat.
That's where the inflation is coming from. Not millennials and Gen-Z getting living wages.
I'm sorry, but the whole "inflation is a monetary phenomenon caused by excess money in the economy" neoliberal trope has been scientifically debunked so many times, that it's inexcusable that people throw it around.
Look at any serious study of the 2022 inflation and they all point to the same: rise in energy prices, bottlenecks in the supply chain, and companies artificially increasing prices above the increase in their operational costs to increase profit.
If you're still not convinced, please explain me how the fed creating dollars led to inflation in the Eurozone, or why if it's a monetary phenomenon, prices didn't increase homogenously in European countries that share the same currency.
To people who don't watch the stock market: this didn't happen. The "government" can't physically print that much money per day. And even if it could, stock exchanges don't accept cash.
The money supply increased about $3.5 trillion in 2020, as you can see in this chart. Nowhere near $2 trillion per day.
Also, the US Treasury and the Federal Reserve (separate organizations) don't buy stocks. They buy Treasury Bonds or sometimes mortgage backed bonds, although that last happened during the 2008-9 recession.
https://www.stlouisfed.org/open-vault/2019/august/open-market-operations-monetary-policy-tools-explained