Government spending to blame for inflation spike, San Francisco Fed study says

While the White House has identified supply-chain bottlenecks and other pandemic-induced disruptions in the economy for the recent price spike, GOP lawmakers have pinned it on the president's massive spending agenda.

But now researchers at the Federal Reserve Bank of San Francisco are weighing in on the topic – and they say that massive government spending during the coronavirus pandemic has caused U.S. inflation to surge more than in other developed economies.

RE: Government spending to blame for inflation spike, San Francisco Fed study says

Naaw. It couldn’t be. I thought the almighty government, like God, never did anything wrong. s\

Now I am really depressed

President Trump turned over to you an inflation rate of 1.5%, the lowest rate of the all the G7 nations except Japan. Currently, these 7 most advanced free economies in the world, less the US, has an average trailing 12 month inflation rate of 4%, with Japan as low as less than 1% and neighbor Canada and the UK as high as 5.1% and 5.8% percent, respectively.
All 7 nations have had common economic exposure to the covid menace and escalating energy prices from the Ukraine war impacting their economies. Yet, our US rate has surged from the next to lowest to the highest by a wide margin at 7.9%, close to double the average 4% inflation rate of our 6 G7 partners with our rate over the last trailing 3 months running at 8.5%, up from the 1.5% rate handed over to you.
The reaon for moving from the next to lowest inflation rate to the highest by a wide margin is, unlike the other 6 G7 nations, we are coming off a spending blowout in 2021 with a record breaking 2.7 trillion annual deficit led by a 1.9 trillion covid relief vote buying bill, a 1.1 trillion infrastructure bill that is far more subsidy than bricks and mortar infrastructure, and the latest yet be spent 1.5 trillion spending bill recently passed by the House and may pass in the Senate (and all of this without the 5 trillion Build Inflation Back Better spending orgy bill that went down in flames).
To paraphrase a bit: Perhaps, just perhaps, it’s the spending, stupid

Both my good hearted but liberal son and a viscous Canadian gender-neutral supporting Marxist leftist on Quora said the same thing.

That is greedy businesses and supply chain woes. Neither of which explains what you described.

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