Warlord wrote on 2023-05-09, 09:03:
Unknown_K wrote on 2023-05-09, 06:35:
Pretty sure 99% of the people who got those $1000 checks pumped it back into the economy in the form of food, rent, utilities, credit card debt, etc. and not 3dfx cards and original Air Jordans. The trillions in tax cuts to the rich given by then President Trump did absolutely nothing to the economy other then add to the debt ceiling from less government revenue.
It actually doesn't matter how they spent they checks. When more of somthing is created it becomes less valuable and in the case of money it effectivly devalues the currency. That being said most people saved the money instead of spent it which fueled inflation. The stimulous checkes didn't really stimulate anything and the 1.9 Trillion recue plan fueled inflation. The top 1% pay 40% of the federal income tax in the US and the top 10% pay 70% of the federal income tax. The economy was good pre pandemic and we didn't have inflation.
You have inflation when the money supply is more than the goods and services you can buy with it. When Tyson foods closes chicken processing plants because workers have covid and the amount of chicken in stores is lower prices go up and you have inflation.
A very small fraction of that 1.9T went to direct payments to qualified people (making under $80K/yr individually and $160K/yea jointly or in that range), quite a bit went to business loans, schools, extending medical benefits, and unemployment extensions. The reason for that was because pretty much all non-essential businesses were closed and all those people who were working became unemployed. You know what happens when millions of people who had jobs don't have them anymore in a very short amount of time, that is a depression and handing out $1400 checks which they will spend as soon as they get them won't even compare to their lost wages or cause inflation.
A funny thing about federal income taxes is 97.7% of them are payed by the top 50% of filers who make over $42K a year. Now you would think the other 50% of filers are deadbeats who don't pay any taxes but you still have state and local taxes plus taxes on booze, cigs, lottery ( I call that the idiot tax for people who are bad at math), property, vehicle, gasoline, highway, school, etc. taxes without which the world would end. Poor people pay quite a bit in taxes just not to the feds and at higher rates then rich people do.
The real reason we have inflation is because oil/gas went up like crazy adding costs to everything we ship which in the US is pretty much everything.
https://www.eia.gov/dnav/pet/hist/LeafHandler … pte_nus_dpg&f=a
Look at what diesel was been doing over the last year or two! Every step of the supply chain gets costs added to it because of fuel prices.
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