With sharp increases to the price of goods and services, where’s all this extra money I’m spending going?

Question

Don’t try to tell me my wages are sharply increasing either, because they’re not! Nor are my friends, family, or neighbors.

In: 113

Answer 1

I think this is thinking about it backwards. The fed printed massive amounts of extra money over the last two years.

https://techstartups.com/2021/12/18/80-us-dollars-existence-printed-january-2020-october-2021/

The question is then, if you print money out of nowhere, where does the value come from? The answer is from the existing dollars. If you print a bunch new currency, the existing currency has less value and you have to use more of it to pay for stuff.

Overall, there is no extra value just because prices went up. The dollar is worth less so you have to use more of it.