that’s an over simplification
The vast majority of that money was spent on disposables…business owners largely stocked up on inventory or became lazy about cash flow management while they grew during Covid, so a lot of the money that went to business’s got eaten up in the working capital deficits created by letting Accounts Receivable run too long while paying payables too fast and tying up too much money in long lead time inventory costs.
And the money given to individuals mostly went to funding a year long vacation for people sitting on unemployment so it covered disposables while not working not hard goods that would increase demand and drive inflation and another big chunk went into speculative investing in Crypto and Robinhood stock traders who are actively losing it all now.
So oddly, most of that printed money is not making inflation…
supply and demand started it, now it’s just good old fashioned profiteering.
But not traditional supply and demand, supply chain breakdowns caused a temporary shortage of supply while demand did not increase dramatically…that combined with dramatically increased shipping costs drove prices up….but now that the supply chain is working itself out companies are keeping the higher prices and taking extra margin.
net profits across the board in this country are up by 15-25% over the last 2 years, and that even with moderate wage increases.
www.v1moto.com
