basic income is inflationary but JG is not—increased economic productivity eases inflation

Q.Ai, "Does Government Spending Cause Inflation?," Forbes, 8-25-2022, https://www.forbes.com/sites/qai/2022/08/25/does-government-spending-cause-inflation/?sh=42f7edcb61e7-- 嘉玮

Not all government spending leads to inflation

However, not all government spending is correlated with higher inflation. It appears that the size and style of intervention matters.

For instance, the recent infrastructure bill is unlikely to contribute to higher inflation. Measures like this aim to buff economic productivity instead of consumer wallets.

In other words, instead of flooding the economy with capital via stimulus checks or tax cuts, they invest in new technologies and jobs. (Both of which, 17 Nobel-winning economists believe, could help ease long-term inflationary pressures.)

So, does government spending cause inflation – or not?

As it stands now, the question is less does government spending cause inflation, and more where and how government spending impacts inflation.

When government activities inject more capital into the economy, consumers have more to spend, which can increase demand. If suppliers fail to meet rising demand, they may hike prices, leading to inflation.

On the other hand, when government activities inject more jobs into the economy, inflation may modulate as capital flows more normally through economic pipelines.