First, from one of the leading economists in all of human history: https://mises.org/mises-wire/what-inflation-really-means#:~:text=Ludwig%20von%20Mises%20however%2C%20held%20that%20the%20popular,the%20quantity%20of%20bank%20deposits%20subject%20to%20check. Inflation, as this term was always used everywhere and especially in this country, means increasing the quantity of money and bank notes in circulation and the quantity of bank deposits subject to check. But people today use the term ‘inflation’ to refer to the phenomenon that is an inevitable consequence of inflation, that is the tendency of all prices and wage rates to rise. The result of this deplorable confusion is that there is no term left to signify the cause of this rise in prices and wages. There is no longer any word available to signify the phenomenon that has been, up to now, called inflation.
You got that, goose steppers? Inflation is INCREASING THE QUANTITY OF MONEY AND BANK NOTES IN CIRCULATION.
Inflation is an increase in the quantity of money without a corresponding increase in the demand for money, i.e., for cash holdings.
Okay, class. (Assuming there's anyone here who made it to middle school status.) There is such a thing as the money supply. https://www.investopedia.com/terms/m/moneysupply.asp The money supply is the sum total of all of the currency and other liquid assets in a country's economy on the date measured. The money supply includes all cash in circulation and all bank deposits that the account holder can easily convert to cash.
(You uneducated goose steppers probably never heard of this.)
Sudden increases in the money supply without production leads to INFLATION.
If the money supply increases faster than output then, ceteris paribus, inflation will occur. If a government prints extra money, households will have more cash and more money to spend on goods. But, if the amount of goods stays the same, the extra cash will just cause firms to put up prices.
But several experts blamed Biden's own actions on the persistent inflation levels. They noted that he has pushed several massive spending packages, namely the American Rescue Plan and Biden's $1.9 trillion COVID-19 stimulus package which have sunk the nation deeper into debt. "Of course, you're going to have inflation when Congress and the president are signing trillions of dollars in new spending and, again, pushing up annual deficits to $2 trillion a year. This is textbook expansionary fiscal policy. The harder the White House hits the gas on fiscal policy, the harder the Fed is going to have to hit the brakes on monetary policy. That just means higher interest rates and more pain for a lot of families."
Bottom line, corporations are PHYSICALLY UNABLE TO CREATE INFLATION. They do not have the keys to the US Treasury.
If you can't understand this, you're a moron. Please don't reproduce.
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You have done your homework. Very good.. And you quote Friedman on this. Also good.. So lets pick that apart. As a Free marketeer, Friedman is theoretically quite right, which makes you correct. However, where the wheels come off is that free marketeers assume the playing field is level and that all operators are open and honest, with no bias shown. Thats the problem with economics in the field, There is always bias. More that hals the board of the Fed are former Goldman Sachs people. This provides a bias to the finance industry and Goldman sachs istelf. And a bias away from long term management of the nation in favor of the balance sheet this quarter. And thats inherently bad for the country ..And the Feds answer to dilution of the money supply by printing more was to print even more, when fiscal restrant and higher taxation of those who had more was the other option. And the corporate world responded by borrowing heavily and getting into unsustainable debt, Because, well "why not?" Interest rates were near zero. Lets party!😷
@whowasthatmaskedman What is there to pick apart? The definition of Inflation comes from the experts. There is no ambiguity about it. This wasn't an editorial on what's bad for the country. This was simply about inflation, its definition and the cause.
Economics is a force of nature. Bias is a human concept and basically irrelevant in economics. (Except that usually government policies result in bad economies.) Goldman Sachs is about as relevant in human action as a single spider is to the entire world animal kingdom.
@Reason10 Again, you ask the right question and the answer is simple. Economics is a precise science. and you use it correctly.. (So far so good) However, once people get involved, they cant help but tinker, and the whole thiong goes to hell very quickly. Because economics is a man on a tightrope.Everything in balance. Remember that money is fictional. A means of exchanging value. We agree that an hours worth of your labor is worth so many eggs, or so many hours of electricity of so much gasoline. But only because we agree. Print more money or take more profit or remove money for work you didnt do and the tightrope walker wobbles and if you keep doing it he falls.. Allow me a couple of sentences as an example. The dot com bubble burst and the US should have had a recession to balance it, But the Clinton admin. promoted real estate with falsely easy finance and the real estate boom headed off the recession, and got out of control, with a wobble that led to the big short in real estae, toxic debt anfdthe first GFC. Then you should have had a bigger recession, but the banks and corporations got bail outs and a recession happened anyway. With "Quantitative easing" or printing more money, becoming an agddiction, since no extra value was actually going into the economy. Covid is an outlier event that America was less prepared for than most, because the economy wa already on the life support it needed to get through it. But at each turn, someone decided to mess with the balance and made things worse..And its still going on..😷
@whowasthatmaskedman Actually, the American economy just before the Covid hoax (aka THE OBAMA VIRUS, because he paid for the Wuhan lab that produced it) was the best of all time. That's probably why the hoax didn't push this country into a depression.
@whowasthatmaskedman Where is Jewish Space Lasers coming from? Never heard that. Sounds like something a raghead Hamas supporter would spew. As far as the Obama virus goes, here's the documentation. https://www.foxnews.com/politics/us-funded-research-create-mutant-viruses-wuhan-lab-ahead-covid-19-records-show
