By Teeka Tiwari
Since the pandemic began in March 2020, the federal government has injected nearly $9 trillion into the economy.
The money helped prop up the economy. But it came at a cost: Sky-high inflation.
Today, inflation is at a record-high 8.6%. Everything from gas… to food… to furniture costs much more than it did two years ago.
To combat the economic fallout from the pandemic, the Federal Reserve pumped more new currency into the U.S. economy than it had issued in the previous 14 years combined.
And as the Fed printed more money, the rest of the dollars we held became worth far less.
It’s simple supply and demand… the more you have of something, the less it’s worth.
Imagine if Apple doubled its share count tomorrow without a corresponding rise in revenue and profits. What would happen to the price of the stock?
Its value would get cut in half.