Replying to Avatar Benking

The main reasons why inflation and actual policy are more complicated than the “print money → hire people → buy votes → repeat” cycle include:

1.Multiple factors drive inflation, Not just government spending. Supply chain disruptions, energy prices, global demand, wages, and consumer behavior all affect inflation.

2.Central bank policy matters, Interest rates, reserve requirements, and monetary policy tools influence money supply and inflation in ways that aren’t captured by a simple cycle.

3.Private sector dynamics,Businesses, investors, and households respond to incentives in unpredictable ways, which can amplify or dampen inflation.

4.Lag effects, Fiscal or monetary actions don’t affect the economy immediately; sometimes inflation reacts months or years later.

5.Global influences, Exchange rates, imports/exports, and international capital flows can have big impacts beyond domestic hiring or spending.
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Brisket 3mo ago 💬 2

Inflation is always and everywhere a monetary phenomenon.

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Benking 3mo ago

Exactly, inflation is essentially a reflection of how much money is chasing goods, not just rising prices.

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Deleted Account 3mo ago

Hilariously every comment in this thread is correct.

Brisket - root cause is always monetary expansion

BK - yes evaluating causes and effects is complex for all the reasons outlined including many factors that amplify or dampen

Jake - you are not wrong that huge growth in public sector jobs only distorts the underlying true economic strength or weakness of an economy AND one of the things we are battling as western societies is the left has figured out ways to 'massage' the public into submission (to be fair both sides do this in different ways). The left will create bullshit jobs which tends to make you not want to rock that boat (the right will tend to slash your taxes).

Everyone is in the business of buying votes. Someone smart once said that this is the path to democratic self destruction (whatsinitforme-ism).