Populist explanations for inflation are literal conspiracy theories.

in conspiracy •  3 years ago 

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https://www.washingtonpost.com/opinions/2022/05/12/democratic-conspiracy-theory-on-inflation-makes-things-worse

I see this error among my left-leaning friends all the time.

That is not to say that there aren't some companies that are taking advantage of the situation to hike their profit margins, but inflation itself is an expansion of the money supply relative to GDP, period. It is a macroeconomic effect, and not "greed", "corporate greed", or any political talking point.

Taming inflation means either raising the GDP (difficult) or shrinking the money supply (considerably easier).

Any for anyone that wants to blame "the other" political party, I urge you to look up the M2 chart on FRED.

If you absolutely refuse to take off your political lenses when trying to understand macroeconomic issues, then at least switch your demagoguery to point out that while Biden is not innocent, the bulk of the inflationary expansion of the money supply happened during the prior administration.

I should be clear that when I say "inflation", I'm talking about the general drop of purchasing power of currency, not price shocks due to rising demand, supply-chain issues, consumption shifts, etc

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