Don't Blame 'Greedy Corporations' for Inflation. Blame the Government."Greed is constant. If it's greed, how do we explain prices falling?"
By John Stossel
February 2, 2022
Inflation is the worst in 40 years.
The price of cars is up 37 percent. Gas is up 49 percent.
During the last few years, as politicians spent ever more money, experts told us not to worry.
Jerome Powell, chair of the Federal Reserve, said inflation would be "transitory."
Treasury Secretary Janet Yellen said, "I don't anticipate inflation is going to be a problem."
Now she says, "I'm ready to retire the word transitory."
What went wrong?
"Big corporations have taken advantage," says Rep. Ted Lieu (D–Calif.).
Sen. Elizabeth Warren (D–Mass.) tweeted: "Greedy corporations are charging Americans extra." It's "price gouging."
This is nonsense.
"Greed is constant," says economist David Henderson in my new video. "If it's greed, how do we explain prices falling?" When oil prices fall, is it because "oil companies just suddenly decide, 'I'm gonna be less greedy?'"
Prices change because of supply and demand.
Inflation results "from too much money chasing too few goods," explains Henderson. "If government's spending more money, that's more money chasing too few goods."
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Source:
https://reason.com/2022/02/02/dont-blame-greedy-corporations-for-inflation-blame-the-government/
