Complaining that loose monetary policy is responsible for inflation is a pretty common theme from Musk/Trump fanboy type CEOs.
They’re also starting to question universal suffrage in public now. Good times.
They’re also starting to question universal suffrage in public now. Good times.
Increasing production takes time. There's not a magical machine that can double it's production overnight: New machines & factories & supply chains need to be built out, and those can take months at best.
Of course everyone is operating with in perfect information so it’s impossible to achieve a completely stable currency.
We didn’t get 300% inflation. So clearly the value of all dollars isn’t simply a direct percentage of the size of the US economy or all wealth in the US etc.
Are you arguing that printing 80% of all the dollars ever created in a short two-year time span had no effect on inflation?
A few years of moderate inflation was an almost perfect outcome compared to the other possibilities.
Note: I don't consider CPI a good measure of inflation experienced by the average consumer. Unfortunately the measure is heavily politicized and thus highly distorted from real-world experience.
Nonetheless, using CPI as a benchmark:
- Average CPI exploded 382% between 2020 and 2021 (from 1.23% to 4.7%)
- Grew another 170% from 2021 to 2022 or 650% increase from 2020 to 2022 (2022 CPI was 8.0%)
- It subsided somewhat in 2023 and 2024 (to 4% then 3%) but remains significantly higher than historical norms.
Notably, CPI is now expected to remain at or above 3% for the foreseeable future, which is a sustained 50% increase over the previous target of 2%
The Fed is now working to normalize this new normal as there is basically no chance of us ever returning to the prior target of 2% CPI anytime soon.
Also note that the largest spikes in inflation align closely with the Feds massive money printing in 2021 and 2022.
source: https://www.investopedia.com/inflation-rate-by-year-7253832
In terms of an authoritative source the World Bank says moderate inflation is 15-30%. https://documents.worldbank.org/en/publication/documents-rep...
I'm not sure if you are being serious or not. Think it through, are you telling me you believe that 29% year over year inflation for years on end with prices doubling every 3 years -- is moderate inflation? And do you really believe after making such a ludicrous statement that the world bank is a credible authoritative source on anything?
Do you also still believe that inflation from 2021-2024 was primarily due to COVID, the war in Ukraine and supply chain issues? Do you choose to ignore, like the government and the FED that printing 80% of all the dollars ever created between 2021-2022 was not an important or more likely the primary factor driving inflation?
Prior to this event, inflation was tame. After this event inflation exploded. Coincidence? I think not.
Notably, the government then blamed COVID, supply chain issues, and the Ukraine war as the reasons for inflation, but neglected to mention money printing.
[1] https://techstartups.com/2021/12/18/80-us-dollars-existence-...
What is the source of inflation then?
Or is it that they have always set their price to the maximum that their customers will bear, and it's just that now, their customers were willing to bear a bit higher (due to some external cause)?