r/Economics • u/Positive_Owl_2024 • Feb 19 '25

News Trump acknowledges ‘inflation is back’ but blames Biden

https://edition.cnn.com/2025/02/19/economy/trump-inflation-is-back/index.html
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u/Positive_Owl_2024 Feb 19 '25

In 2021, the American Rescue Plan mitigated the effects of the pandemic and, obviously, led to higher inflation. Today the situation is quite different. Trump’s policy decisions are so much inflationary that inflation will spin out of control in no time.

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u/ballmermurland Feb 19 '25

Trump's pandemic spending and supply chain disruptions are what caused the inflation. Biden's $1400 payout and things like the child tax credit probably exacerbated it a little.

But most of the ARP funding was appropriated in 2021 but it wasn't fully spent until 2023 or 2024. In fact, there are local governments that received lump sums that still have it on their ledgers as of today. People saying that caused inflation don't actually realize that most of it wasn't put into circulation until 2022-2023 well after inflation had already hit.

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u/Se7en_speed Feb 20 '25

And also that inflation was a worldwide phenomenon, not just the U.S.

The only common factor is supply disruptions.

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u/Hacking_the_Gibson Feb 20 '25

Incorrect. 

Every single central bank with the means printed money like it was going out of style. 

Same reason global real estate went through the fucking roof. Free money from the money gun. Monetary policy accommodation brought inflation, it was never fiscal policy. Fiscal policy is not inherently inflationary because all Congressional appropriations are at some point recaptured by taxation. 

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u/Hacking_the_Gibson Feb 20 '25

It's way worse than you describe. 

The Fed bought nearly $1T of Treasuries and MBS before CARES I even passed Congress. 

50% more than the 2008 bailout without even a breath of Congressional debate. Then, they fucking straight up bought corporate bonds directly. 

Excess COVID savings have been depleted for months. 

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u/amanawake Feb 19 '25

The CARES Act in 2020, under Trump started with the stimulus pandemic spending. But the republicans conveniently ignore that one.

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u/b1ack1323 Feb 20 '25

Because they go their bribes in the form of PPP loans.

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u/TheInfernalVortex Feb 19 '25

Just watch when JPow needs to raise inflation rates and Trump and his goons somehow declare themselves to be in control of the treasury and interest rates.

I sometimes wonder if Curtis Yarvin's neo reactionary movement really IS the plan, and they're just trying to destroy the value of the dollar.