“M1 was redefined to include savings account”
You really think that explains it? Who keeps money in savings accounts nowadays when they literally pay zero interest? My bank doesn’t even offer savings accounts anymore, they automatically transferred my whole balance into a checking account because the service is obsolete and has been for over a decade now.
Before May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other checkable deposits (OCDs), consisting of negotiable order of withdrawal, or NOW, and automatic transfer service, or ATS, accounts at depository institutions, share draft accounts at credit unions, and demand deposits at thrift institutions.
Beginning May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other liquid deposits, consisting of OCDs and savings deposits (including money market deposit accounts). Seasonally adjusted M1 is constructed by summing currency, demand deposits, and OCDs (before May 2020) or other liquid deposits (beginning May 2020), each seasonally adjusted separately.
Further, if the equivalent of $36,364 per 330MM Americans materialized overnight, we'd see it.
What explains everything is the expansion of "money" which includes BTW whatever debt the private sector is willing to create.
But even as we see exploding prices and exploding money supply there is the "nothing to see here crowd."
The issue isn't a psychological one. I can pretend that food costs didn't just go up 40% or some such and try to change nothing in my life, but when I look at how much of my money is left over at the end of the month to go towards the down payment on the car that I can't buy because the supply chain is jammed up, I find I have much less than I was planning on, so whoops there goes the new car. So I wander across the street and discover I can't get used car either. So I go buy myself a bicycle and discover the price of that just skyrockted as well. It's a real and pervasive and not going to go away. You can look the other way when a truck is bearing down on you as you cross the road. You are still dead when it hits you.