Biden's stimulus plan is fueling short-term inflation, SF Fed paper finds

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President Biden's $1.9 trillion American Rescue Plan is contributing to elevated inflation but it isn't expected to overheat the economy, a new research paper from the San Francisco Federal Reserve concludes.

The package signed into law in March included stimulus checks, enhanced unemployment benefits, small business loans, aid to state and local governments and relief for airlines designed to speed up the economic recovery following Covid-19 shutdowns. A record number of Americans are quitting their jobsSeven months later, economists are still debating whether the US economy really needed that much support, given that the recovery was already underway.

5 job vacancies per unemployed person, and bottomed out during the Great Recession that began in late 2007 when there were just 0.15 vacancies per unemployed person. In August, this ratio hit 1.25, more than twice the historical average of 0.6%, the paper said. The economists estimate that the American Rescue Plan will have pushed the vacancy-to-unemployment ratio up by 0.6 units in 2021 and by nearly 0.5 by the end of 2022.

 

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The inflation in Europe and Canada are very high as well, it’s that damn virus causing all of this

The elevated inflation is from these greedy companies creating a crisis that is not Real. Because people are sick of slave wages. And signs that say make upto xx per hour. People have wage awaken.

Why isn’t anyone going to the actual companies or the people who’s names are on the checks and asking them why they have CHOSEN to raise prices on the American people? We always like to let the media and politicians blame us when we don’t make the prices. WE PAY THEM! 99% over 1%

Why a rescue plan We were fine 10 months ago

😂😂😂

Democratic sponsored

👍👍

No but that is the story that republicans will tell so that they can get control of the house & senate. Democrats better start winning that conversation or they will be saying bye bye to Washington D C in 2022.

I’m sure opinions vary greatly…hope they are right, though.

And if Trump was there?

Perhaps let’s do something with the gas prices.

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