that link has yellen saying the spending bill will bring down inflation. i don't understand it though. how can spending more money bring down inflation? i guess if there's more people able to live their lives if they get assistance, maybe the labor shortage will lessen and the push upwards will lessen? this is too nebulous for me to understand. i dont see a clear argument that this bill will bring down inflation
these spending bills won't bring down inflation
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Government isn't very good at spending other people's money. It has a really bad history. Central planners tend to get tunnel vision.
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@n8nrgmi
how can spending more money bring down inflation?
If it's money the government has in excess, investment of that money can stimulate the economy and it will reduce inflation. But, that is not the case. Biden is proposing spending money he is going to have to create by quantitative easement [printing it], and that's what Bush and Obama did. As it only artificially boosts the economy, the economy will not self-sustain that boost, and the economy falls. This was the track of Obama's entire 8 years. Yes, the economy grew during those 8 years, but look at the graph of econ growth. Up-and-down, up-and-down. Eight years of a roller coaster. Yeah, the market generally grew by 10,000 poin ts, but it also lost 6,000 points, for a net of 8-year growth of just 4,000 points. That's dismal. Biden will attempt to repeat, and the same results will occur. To expect otherwise, they say, is insanity. Worse yet, Biden is not really planning much investment, just raw spending. Yeah, he talks the infrastructure bill, but only a pittance of that bill is going to fund actual infrastructure construction. Most of it is just spending; effectively to buy votes.