I wanted to clear up on something i thought i could get a good answer from here.
Is it true that the 16 trillion dollars printed had no negative affect on the taxpayer? and is that 16 Trillion the sum total of various amounts of overnight loans based on collateral which all of which have been repaid?
This was a statement by someone which i turned into a question.
I am going to have to start some extensive reading on austrian economics because i can bear someone saying something and me not having an intelligent comeback.
Purchasing power of US taxpayers decreased. Say we have X in circulation.
I have Y in my pocket. Y/X was my previous purchasing power. Now I have Y/(X + 16 trillion). That was because most taxpayers don’t get the new money.
Y/X > Y/(X + 16 trillion) in long run, after new money and money substitutes fully circulate through economy.
For instance, I like eel. It is import good. Its price doubled permenently in past year thanks to inflation in short run.
Of course, since inflation depends on how money was injected and spent, money price of some things quadrupled and other things stayed about the same. Which means purchasing power of some taxpayers is Y/X > Z* > Y/(X + 16 trillion), but for others, it is Y/X > Y/(X + 16 trillion) > Z**.
Big decrease in purchasing power unless you are in bank or in politics.