• nbafantest@lemmy.world
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    1 year ago

    Government spending has propped up GDP during COVID, which is inline with Keynesian economics.

    But we are seeing the effects of some of that years later. Is higher interest rates better than a huge depression? Probably.

    • orrk@lemmy.world
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      1 year ago

      the problem is that one small group is holing the rest of us hostage, we needed to do the whole spending to ensure people could continue to afford food/housing etc… and that ended up going to everyone, just when it comes to repaying it, the hostage takers threatened to upend the economy if they have to pay it back, so it falls on the rest of us.

      record profits as the average American is struggling to get by

    • SwampYankee@mander.xyz
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      1 year ago

      Government spending is not the root cause. If that was the case, we would have seen inflation much sooner, since we’ve been in the era of quantitative easing ever since 2008. The fed was starting to raise interest rates even before covid because the post-2008 recovery was turning into an expansion; we are still in that expansion phase, and covid fucked up our supply chains which kick started the inflation that would have accompanied the expansion regardless, but would have been easier to control in normal times.