• Matty Roses@lemmy.today
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    1 month ago

    Giving this much money to low-income workers has a disproportionate impact on inflation

    That’s not what the data seemed to say - every actual study showed that inflation came from supply shocks, and then companies using that excuse to raise prices.

    What DID pose a problem was you saw people not scared to starve if they lost a job. And that was causing big worries for employers, and that’s what couldn’t continue.

    • BygoneNeutrino@lemmy.world
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      1 month ago

      What data? I have a hard time believing that people didn’t increase their spending in response to increased disposable income. Food especially since food stamps could only be spent on food. If you post your source, I’ll objectively review it.

      When demand outstrips supply, people began bidding. A 1% difference between supply and demand leads to a more than 1% change in prices.

      This doesn’t even mention the fact that the supply of domestic products was interrupted by high unemployment benefits. I sure as hell quit my job because of them. It was a no-brainer.