The last year has been replete with news stories about inflation and the difficulties people are having making ends meet. Inflation is always erroneously blamed on corporate greed such as Big Oil, Big Pharma, Big Ag or the generic Wall Street ripping people off. It never reports on the true cause: Big Government.
Inflation is caused by the increase in the supply of dollar bills. Higher prices are just the inevitable result of more cash chasing a lesser amount of goods and services. The increase in the supply of money is the consequence of government (aided by the Federal Reserve) spending funds created by borrowing via Treasury bills, notes and bonds.
The inflation which we are now paying is merely the private economy financing the recent years’ budget deficit driven by COVID checks, infrastructure and green energy subsidies. Basically, it is a no-deduction tax on lower- and middle-income families that Congress and the administration did not have to openly vote on — a pretty neat political trick that most citizens aren’t aware of.
