You think dumping trillions of money in a covid stimulus package didn't cause inflation? Most of went to the rich anyway. Demand should go down when prices go up.
I don't think so, because as you said most went to the rich anyway. For the inflation to be caused by the stimulus, it'd have to actually be in the hands of people spending it.
Demand can only go down when prices go up for elastic goods, so this isn't a factor for, e.g., oil, and anything made or transported using it (everything). Demand is further increased by people having already put off a lot of spending for 2 years.
Demand can only go down when prices go up for elastic goods, so this isn't a factor for, e.g., oil, and anything made or transported using it (everything). Demand is further increased by people having already put off a lot of spending for 2 years.