Comment by jostylr

Article states 4 trillion in excess profits.

US government had about a trillion in deficits before the pandemic then spiked up to about 3 trillion in each of 2020 and 2021 [1]. That is a bump of 4 trillion dollars suddenly over those two years. The past two years seems to be about 1.5 trillion each and the inflation rate has decreased.

The theory is that printing money to spend leads to raising prices. Somebody gets that excess money so they can buy more of whatever they need, maybe start new projects or whatever and this bids up prices. Since this is not based on removing the ability for others to buy what they want (no tax increase) then the overall demand goes up. If you also have supply restrictions while spiking demand, it is natural for prices to rise dramatically.

This creates wage rising demands which, after much agony, more or less gets everything back at the same actual price levels though usually with a range of incompleted projects and a decent chunk of people impoverished while some got very rich. The particulars depend on whatever sector was inappropriately stimulated in the start of the process.

The Austrian school of economics is a good place to learn more.

Taxes are an explicit mechanism to say who the government is taking money from in order to give money to whomever they are giving it to. Deficit spending is an implicit way of taking money as determined by the market which means those with the least power are likely to lose the money.

The pandemic had about a trillion going directly to people. The rest went elsewhere.

There is also the issue of this is US spending versus global spending. Not sure what other countries did and also unsure how much the US dollar being the main global reserve currency factors into this.

1: https://fiscaldata.treasury.gov/americas-finance-guide/natio...