Tuesday, July 13, 2021

An Interesting Thing

Inflation is going up. Now a lot of this is due to the base (last year) having 0 growth and some deflation because of Covid (for example a flood of used cars came on the market because rental car companies sold their fleets).

But that isn't my point here. Here is my point.

Under Tump's tax law of 2017, money flooded into the United States, but into corporations and the richest people. The Rich already spend what they needed, so new money didn't change habits and not money entered the economy.

Corporations were supposed to increase wages and buy more equipment. That did not happen except for 3 or 4 companies that big noise about raise salaries, but otherwise, crickets. They used the money to give raises to the higher ups, to increase dividends (which go to the richest 10%) and buy other companies.

 Do inflation did not go up, because the money didn't enter the economy.

NOW, the monies to actual people (from the emergency payments under both Trump and Biden) and they are spending it. THAT and the need for companies to restock for post-pandemic has pushed up prices and inflation. As someone who lived through 20% inflation under Nixon, Ford and Carter, too much inflation is horrible. But a little inflation is okay.

My 2 cents.

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