Quote (Prox1m1ty @ 25 Sep 2024 10:45)
They spent about 5 trillion on the covid pandemic. That in itself is inflationary; The flipside is what would have happened without that spending? Debatable.
Along with global supply chain issues, increasing minimum wage, increasing energy and commodity costs. The cost is passed on to consumers.
We had about a decade of basically 0.5% central interest rates in the UK, after the 2008 financial crisis. This stored up a un-natural inflationary pressure on the economy.
The central bankers kicked the can down the road for a decade. Blame Biden if it fits the narrative, in reality he had very little control of that situation.
Inflation in the US in January 2022* stood at 7.5% while it only stood at 5.1% in the eurozone. Likewise, inflation in the US is now again higher than in the eurozone, and that's in spite of the ECB already having cut rates again months ago while the FED only did it last week.
Some degree of inflation was always inevitable, but there are multiple ways in which Biden exacerbated this surge of inflation.
* I pick this cutoff date since it's the last month before the fallout from the Ukraine war was felt, a fallout which hit Europe a lot harder than the US and thus skews the comparison.
This post was edited by Black XistenZ on Sep 25 2024 02:52am