Does the Biden Administration Understand Inflation?

[mystery-ak]

July 10, 2021
Does the Biden Administration Understand Inflation?
By Jim Hollingsworth

There seems to be a lot of confusion today about inflation.  Pick up the paper or follow an internet site and you will read that the inflation rate this year is expected to be 2% or 3%.  What they really mean is that prices are expected to rise 2% or 3%.

But is that inflation?

Inflation is an increase in the money supply.  So why is the difference in definition critical?  Prices rise because of inflation; they are the result of inflation but they are not inflation, nor are they the cause of inflation.

This is important because the government is the only one that can increase the money supply.  This is done in a number of ways, but for the moment just think of it as printing more money.  That is what countries have done when they ran out of money; they just printed more money until it came to the point where their money was almost worthless, where a wheelbarrow load of money would just barely purchase a loaf of bread.

Prices rise as a result of inflation.  But if we just think of prices rising, we are apt to blame different vendors who we think are just getting rich off of circumstances.  We recently had a gasoline shortage and politicians wanted to be sure that there was “no price gouging.”  As prices rise, we tend to blame people rather than the government.

more
https://www.americanthinker.com/articles/2021/07/does_the_biden_administration_understand_inflation.html

[catfish1957]

Joe....  It starts with an "I", and ends with an "N"

[dfwgator]

Joe....  It starts with an "I", and ends with an "N"

That’s why, tonight, I want you to try to look for in inflation, an entirely new word: Inflation is our friend.

For example, consider this: in the year 2000, if current trends continue, the average blue-collar annual wage in this country will be $568,000. Think what this inflated world of the future will mean – most Americans will be millionaires. Everyone will feel like a bigshot. Wouldn’t you like to own a $4,000 suit, and smoke a $75 cigar, drive a $600,000 car? I know I would! But what about people on fixed incomes? They have always been the true victims of inflation. That’s why I will present to Congress the “Inflation Maintenance Program”, whereby the U.S. Treasury will make up anyinflation-caused losses to direct tax rebates to the public in cash. Then you may say, “Won’t that cost a lot of money? Won’t that increase the deficit?” Sure it will! But so what? We’ll just print more money! We have the papers, we have the mints.. I can just call up the Bureau of Engraving and say, “Hi! This is Jimmy. Roll out some of them twenties! Print up a couple thousand sheets of those Century Notes!” Sure, all these dollars will cause even more inflation, but who cares? Everyone will be a millionaire!

[The_Reader_David]

As is the case with almost every question of the form, "Does [left-wing politician] understand [economic concept]?" the answer is "No."

Examples of questions of that form in which the answer is "Yes" of late almost always are instances in which the value of the variable [left-wing politician] is Yannis Varoufakis.

[catfish1957]

As is the case with almost every question of the form, "Does [left-wing politician] understand [economic concept]?" the answer is "No."

Examples of questions of that form in which the answer is "Yes" of late almost always are instances in which the value of the variable [left-wing politician] is Yannis Varoufakis.

U.S governmental expenditures?  The closest thing to the proverbial "blank check" on earth.  Well....  until the house of cards folds.