Inflation is sharply up. Now it’s 7%. What went wrong?
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Senator Elizabeth Warren blames “corporate greed” for inflation. “This is about price gouging,” she says. Nonsense. Prices change because of supply and demand. Inflation results “from too much money chasing too few goods. So if government is spending more money, that’s more money chasing too few goods,” explains economist David Henderson. Our government is spending more money. In the last few years, the Federal Reserve has printed much more money than ever before. Once inflation starts, it’s hard to stop. In Zimbabwe, they eventually were printing 100 trillion dollar bills. I assume that won’t happen here. But with politicians from both sides wanting to spend more, it could happen here.
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