Modern Monetary Theory (MMT) is a useful tool here. It says that, in countries who control their own central banks and use fiat currency, money is created by the government, and is injected into the economy by government spending. The government then collects taxes to take money out of circulation and control inflation.
The US government cut taxes significantly under the Trump regime and the Biden regime hasn't corrected this. The PPP paid tons of money to the bourgeoisie and petit-bourgeoisie. Tax avoidance loopholes exacerbate the problem, and the US tax code is full of them, and, by starving the IRS of funding, taxes that should have been paid by the most wealthy are able to go unaudited and unpaid because the IRS can't afford the legal fees to pursue them. On top of that, the US government continues to increase spending on the usual garbage that doesn't produce anything socially useful.
Beyond that, Overnight Reverse Repurchase Agreements have been issued at a record pace since the second quarter of calendar year 2021, currently standing at $2,26 trillion (at the beginning of CY2021 it was effectively $0). Risking oversimplification, this is banks printing money to lend to each other.
Inflation is when there is too much currency in circulation, which devalues the currency. The way too much currency gets into circulation is the government putting it into circulation and not removing enough from circulation. We workers have no ability to print money (without going to jail), so there is no way that us having a better bargaining position has any substantial effect on inflation.
The USD being the global reserve currency (for now :pray-against:), likely has an outsized effect on other countries' inflation.
Note: EU member countries do not have control of their own central banks (except Germany lol).
Modern Monetary Theory (MMT) is a useful tool here. It says that, in countries who control their own central banks and use fiat currency, money is created by the government, and is injected into the economy by government spending. The government then collects taxes to take money out of circulation and control inflation.
The US government cut taxes significantly under the Trump regime and the Biden regime hasn't corrected this. The PPP paid tons of money to the bourgeoisie and petit-bourgeoisie. Tax avoidance loopholes exacerbate the problem, and the US tax code is full of them, and, by starving the IRS of funding, taxes that should have been paid by the most wealthy are able to go unaudited and unpaid because the IRS can't afford the legal fees to pursue them. On top of that, the US government continues to increase spending on the usual garbage that doesn't produce anything socially useful.
Beyond that, Overnight Reverse Repurchase Agreements have been issued at a record pace since the second quarter of calendar year 2021, currently standing at $2,26 trillion (at the beginning of CY2021 it was effectively $0). Risking oversimplification, this is banks printing money to lend to each other.
Inflation is when there is too much currency in circulation, which devalues the currency. The way too much currency gets into circulation is the government putting it into circulation and not removing enough from circulation. We workers have no ability to print money (without going to jail), so there is no way that us having a better bargaining position has any substantial effect on inflation.
The USD being the global reserve currency (for now :pray-against:), likely has an outsized effect on other countries' inflation.
Note: EU member countries do not have control of their own central banks (except Germany lol).