I’m not an economic expert, but I’ve interviewed a few of them.
Look, I like getting cash back from the government as much as anybody, but inflation is caused by too many dollars chasing too few items. Supply chain issues from the pandemic still haven’t caught up with new demand. Giving us money will only drive up demand before supply can catch up, which will only worsen inflation. The way to fix inflation is more goods, not more consumer dollars.
We’re in campaign season, though, and that means the only answer politicians are willing to offer voters is more cash givebacks.
Of course, there are no laws to force businesses to increase supply willingly — they’re making too much money right now. Lower expenditures producing fewer goods leading to exorbitant prices means higher profit margins.
The only thing you and I can do about inflation is to stop buying stuff. The only way you and I can bring gas prices down is to stop buying gas. But that’s a hell of a lot easier to say than do.
And sadly, too many of us are falling through the cracks, and a little extra cash might be the difference between having food on the table and not.
If we’re not careful, inflation can be like a runaway nuclear reaction. Insert the control rods too fast, and you risk a shutdown. Insert them too slowly, and you risk a meltdown.