> It's all disinformation, and rather easy to refute. For example, if oil price hikes cause inflation, why do we not have corresponding deflation when oil prices go down?
What’s the logic here? Are you saying that if oil prices going up caused inflation, that oil prices going down would cause deflation?
That a nice intuitive leap, but you haven’t actually provided the reasoning for why that would be true. It’s kind of like saying that sticking a knife in someone doesn’t kill them, because pulling the knife out doesn’t bring them back to life. Sometimes, the opposite action doesn’t have the opposite effect. Pulling a knife out of somebody doesn’t restore them to the original state before they got stabbed. Lowering oil prices does not restore the economy to the original state before oil prices were raised.
> Are you saying that if oil prices going up caused inflation, that oil prices going down would cause deflation?
That's right.
Where does the extra money come from to keep prices high after the oil prices drop? In order to have a general price increase, there must be more money in the economy to sustain it.
> In order to have a general price increase, there must be more money in the economy to sustain it.
I would describe this as “categorically incorrect”.
The law of supply and demand normally has two sides—supply, and demand. It’s simplistic way of looking at it, but it’s enough to explain why prices of a product can increase even if there isn’t more money.
If you focus narrowly on the supply on money, like it’s the only variable, you won’t end up with a satisfactory explanation of inflation. It’s like trying to understand the world by looking through a peephole.
Measuring US GDP in dollars is like measuring a shrinking table with a ruler that shrinks even faster each time you use it.
Simply doubling the money supply will miraculously double GDP figures because you're measuring GDP in terms of something you just halved in value (with disastrous results on the real economy)
What’s the logic here? Are you saying that if oil prices going up caused inflation, that oil prices going down would cause deflation?
That a nice intuitive leap, but you haven’t actually provided the reasoning for why that would be true. It’s kind of like saying that sticking a knife in someone doesn’t kill them, because pulling the knife out doesn’t bring them back to life. Sometimes, the opposite action doesn’t have the opposite effect. Pulling a knife out of somebody doesn’t restore them to the original state before they got stabbed. Lowering oil prices does not restore the economy to the original state before oil prices were raised.