February 12, 2021
When inflation rises, what's Biden going to do?
By Tom Sleeter
The original name of the field of economics was political economy. That may again be quite appropriate in 2021 as we get an even larger government that is going to make a lot of economic decisions. Given the huge monetization of debt and the rapid increase (about 75%) in money supply in 2020, it can be expected that inflation will pick up in the coming quarters.
How will a left-wing government likely respond to this? The classic way is to impose price controls to shift the blame from the politicians and the central bankers who created the inflation to the "greedy businessmen" who are raising prices. Obviously, price controls don't work. Economists across the political spectrum realize that, but it's a common political tool to shift blame and placate the public.
How might this play out in a Biden administration? When inflation picks up, there will likely be a call for price controls, probably through executive decrees rather than legislation, at least at first. When there are price controls and prices are set below market levels, there will be shortages. At that point, public unhappiness increases.
more
https://www.americanthinker.com/blog/2021/02/when_inflation_rises_whats_biden_going_to_do.html
