4 upvotes, 1 direct replies (showing 1)
View submission: Thoughts on trump’s economy?
It depends entirely on how productive the factories are. "Increased money supply" = "inflation" is an immense over simplification of economics.
Comment by Tokidoki_Haru at 10/03/2025 at 23:17 UTC*
0 upvotes, 1 direct replies
The factories aren't instantaneous. You still have to spend money to build them, and the government subsidizing their construction is by definition increasing the money supply.
Since inflation is driven by expectations, there is always going to be an inflation pulse when in the middle of an investment boom for manufacturing.