• jray4559@lemmy.sdf.org
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    1 year ago

    Man everybody’s hiking up prices. Where’s the money gonna come from to pay these, though? Considering thanks to inflation a lot of us have to use that money for more important things like… food.

    • JasSmith@sh.itjust.works
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      1 year ago

      People are still paying these prices. All industries are booming. Taylor Swift’s Eras Tour made like $750M. Most countries went overboard on stimulus spending during covid. To the tune of trillions of dollars. That money is still slowly making its way into the economy. I think it will take years to normalise. In the mean time, US debt is at $33T and climbing fast, meaning we should expect QE at some time in the future, exacerbating inflation further.

      The prescribed solution to this mess is crystal clear: higher taxes AND reduced spending. Both. At the same time. Very important. Otherwise we should expect inflation and rates to remain high for the foreseeable future.