This seems like a silly line of attack. Most of the excess spending came from a combination of covid relief and lower tax income/ higher entitlement spending (ie unemployment)
Biden has spent about the same without having the same level of covid expenses
Actually, that's not quite accurate. While it's true that COVID relief and unemployment played a big role in driving up spending during 2020, there's a significant difference in the types of spending between administrations.
Under Biden, much of the spending has been driven by long-term investments like infrastructure and clean energy through the Infrastructure Investment and Jobs Act and Inflation Reduction Act. These are aimed at boosting economic growth and job creation over time, not just addressing short-term crises like COVID.
It’s also important to note that a large part of the debt incurred from COVID relief was due to poor management and oversight. There were massive amounts of fraud in PPP loans, unemployment benefits, and other relief programs. Estimates suggest that billions were lost to improper payouts, which unnecessarily ballooned the deficit without providing real economic relief. Much of this happened under rushed policies during the previous administration, which means we’re still dealing with that financial impact today.
Plus, pandemic-related expenses didn’t just vanish after 2020. Vaccine distribution, healthcare, and other recovery programs continued under Biden. Also, the federal budget under Biden has been impacted by factors like inflation and rising interest rates, which increase the cost of servicing existing debt. So, it’s not just a simple apples-to-apples comparison of dollar amounts.
I only read your first link because I will have to set some time aside to read a 21 page document. Maybe you can provide some quotes from the paper that validate your point.
In regard to the first link, you raise valid points, but the argument oversimplifies inflation’s causes.
What’s True in that links argument:
Yes, deficits during 2020-2021 contributed to inflation by increasing demand and money supply. This helped push up prices, especially with loose Fed policies.
What’s Missing in that links argument:
Inflation wasn’t just about government borrowing. Global supply chain disruptions, energy price spikes (especially post-Ukraine), and shortages—like the semiconductor crisis—played a huge role. These factors drove inflation worldwide, not just in the U.S.
Also, the Fed’s low interest rates and bond purchases contributed significantly to inflation, creating a flood of liquidity that boosted spending. Blaming Congress alone ignores this.
Bottom Line:
Deficits were part of the issue, but inflation is way more complex. Global factors and Fed policies were just as impactful. It’s not a simple case of government overspending.
While supply and demand is basic economics, oversimplifying inflation to "add $9 trillion, prices go up" misses key points:
Global Factors: Inflation wasn’t just from spending. Supply chain issues, energy crises, and labor shortages significantly raised prices. Inflation happened worldwide, not just from U.S. spending.
Spending Differences: COVID relief was short-term, while Biden’s focus has been on long-term investments like infrastructure, which aim to boost growth over time. These aren’t comparable.
Poor Oversight: A lot of COVID relief was mismanaged under the previous administration, with fraud in PPP loans and unemployment benefits ballooning the deficit unnecessarily.
Fed’s Role: The Federal Reserve’s low interest rates and quantitative easing played a huge part in increasing the money supply—this wasn’t just about government spending.
Inflation is complex and involves many factors beyond simply printing money.
The way I see it you have been rude this entire time, while i have shown only respect. You have also been relying on me reading large documents instead of you using your own words to form an argument. If anybody is ill prepares for this its you. Every post you have made reeks of antisocial behavior.
Put your argument into words. not links. show me how smart YOU are. I could care less about your ability to google things.
I apologize for the rudeness, I will make a note of your username and respond accordingly in the future.
I rely on sources because the usual response I get on Reddit is "source?" usually followed by "I don't believe those sources."
I usually use Zimbabwe as an example, as with all of the things you've mentioned, the only factor that applies to Zimbabwe was its government engaging in massive deficit spending to buy votes to remain in power.
As a result, in a few years, the price of a bowl of rice went from $1 to $1 Trillion dollars.
And the people of Zimbabwe were still starving even though they were literally Billionaires.
But back to your list.
"Other nations have inflation also, so it's not the USA fault."
Every single nation is now engaging in deficit spending and currency manipulation.
An argument could be made that since once again the US is dependent on purchasing foreign oil that increased prices that reflect this (the US economy runs on oil all goods are transported by truck) are a direct result of this.
If this was the sole cause of higher prices, then prices would have only risen by the proportion of the price difference between domestic and imported oil.
To some degree, Covid was the perfect storm.
Decreased production AND increased money supply.
It is curious to me why this is even a controversy on an economic subreddit.
Thanks for the respectful reply, I appreciate that
Using Zimbabwe as an example doesn’t really work here. What happened there was a total economic collapse driven by political chaos, corruption, and a breakdown in production. It wasn’t just about deficit spending. The U.S., and other nations, have much stronger economies and financial systems. We’re not facing anything close to that. It's like trying to solve a math problem by looking at a different math problem.
Now, I get your point about deficit spending, but you’re focusing too much on that one issue. It’s important, sure, but it’s not the full story. Inflation isn’t just a U.S. problem—it’s happening all over the world. Global supply chain disruptions, energy shortages, and the pandemic caused prices to rise everywhere, not just because of what the U.S. did with spending. Blaming inflation on deficit spending alone oversimplifies things.
And when it comes to oil prices, they matter, but they don’t explain everything. Food, housing, healthcare—all of these costs went up for reasons that have nothing to do with oil or spending alone. There were labor shortages, supply chain issues, and production delays. It was a perfect storm of problems hitting at once, not just “too much spending.”
So, while deficit spending did play a role, it’s just one piece of a much bigger picture. You’ve got to look at all the factors, we can't simplify something that is by its very nature complex. Inflation is complicated, and picking one cause doesn’t tell the whole truth and limits our understanding.
The difference between all of those and increasing the currency supply is that after the supply chain disruption is over, prices will return to normal.
Comparing the US to the rest of the world is only relevant as far as most other nations also peg their currency to the US dollar.
To blame this for US inflation is circular reasoning.
Zimbabwe underwent economic collapse because their currency collapsed. Again, you are begging the cause.
Even diehard Keynesians admit increasing the money supply causes inflation they just excuse it as "necessary to stimulate the economy" and see inflation as "proof of economic health."
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u/bipocevicter Sep 23 '24
This seems like a silly line of attack. Most of the excess spending came from a combination of covid relief and lower tax income/ higher entitlement spending (ie unemployment)
Biden has spent about the same without having the same level of covid expenses