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Scar589 t1_iu8enuj wrote

Reply to comment by RedditIsShit9922 in Japan unveils $200 billion in new spending to ease inflation pain by NBAtee

I wish I could upvote this a million times.

Edit: u/r488191 is correct though. You both are. If you spend the money you already have it won't affect inflation as the amount of money in circulation stays constant. But if you print (like u/r488191 pointed out) or borrow (like you pointed out), the supply of money grows and so does inflation.

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RedditIsShit9922 t1_iu9tjyu wrote

Right, but demand is also an issue. The state using the money to reduce debt will result in less demand than giving money to everybody.

I am not against support from the government by the way. It just frustrates me how undifferentiated this support is. Here in Germany, literally every citizen gets this inflation support, including freaking millionaires.

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