Every person got $1200 in the form of a relief check, plus $500 per child. That by itself would explain the sharp rise in apparent median income in 2020. Also, though, welfare was much more generous and easy to join during the pandemic. And of course there were major handouts to businesses. The government printed a
ton of money during the pandemic.
All of that extra cash (plus some supply-chain factors, sure) triggered inflation. But again: even adjusting for inflation, incomes are right where they were in 2019.
I do think that injecting almost 5 trillion dollars into an economy can trigger inflation, yes.
Every person got $1200 in the form of a relief check, plus $500 per child. That by itself would explain the sharp rise in apparent median income in 2020. Also, though, welfare was much more generous and easy to join during the pandemic. And of course there were major handouts to businesses. The government printed a ton of money during the pandemic.
All of that extra cash (plus some supply-chain factors, sure) triggered inflation. But again: even adjusting for inflation, incomes are right where they were in 2019.