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I don't know, man. I-a single adult -recieved over $700 in food stamps for well over a year. I ran out of my saved food stamps in 2025. I was also diagnosed with COVID over the phone and received over $5000 in unemployment per month. Since this income wasn't reflected in Medicaid's income requirements, I got free insurance as well.
Giving this much money to low-income workers has a disproportionate impact on inflation. The skyrocketing prices of frozen meals and gourmet animal products, for example, was a direct result of the food stamps.
It helped both me and the shareholders, but it came with a long-term cost. Everyone who had a job during the pandemic paid the price.
That's not what the data seemed to say - every actual study showed that inflation came from supply shocks, and then companies using that excuse to raise prices.
What DID pose a problem was you saw people not scared to starve if they lost a job. And that was causing big worries for employers, and that's what couldn't continue.
What data? I have a hard time believing that people didn't increase their spending in response to increased disposable income. Food especially since food stamps could only be spent on food. If you post your source, I'll objectively review it.
When demand outstrips supply, people began bidding. A 1% difference between supply and demand leads to a more than 1% change in prices.
Any conclusions would also need to account for the impact of high unemployment benefits on domestic production. I sure as hell quit my job because of these benefits. It was a no-brainer; I more than quadrupled my disposable income overnight.
https://www.project-syndicate.org/commentary/transitory-us-inflation-reflected-supply-disruptions-and-sectoral-shifts-not-aggregate-demand-by-joseph-e-stiglitz-2023-11