As I said. I bet you've heard that your whole life, too. It's good to question things you've heard your whole life.
> Inflation comes from a imbalance in supply and demand.
Inflation comes from the government issuing money at a faster rate than the economy grows. The reason it does that is to spend more money without raising taxes. This is sold to the citizens as being "good", and any deleterious effects are blamed on mumbo jumbo theories like "wage-price spirals" and "cost-push".
Keep in mind that there's no free lunch when it comes to economics, just like there's no free energy in physics. Any economic theory that creates something out of nothing is false - you don't need to understand it to know it is false. Just like when some crackpot comes to you with a perpetual motion machine, you know it's a fraud even if you don't examine his theory to find out where he went into the ditch.
> As I said. I bet you've heard that your whole life, too. It's good to question things you've heard your whole life.
Sure, and it is questioned. But this isn't just "something I've heard", but something me, and many others, have studied to exhaustion. It's basic economics. Like gravity. When was the last time you jumped out of a window just to question gravity?
> Inflation comes from the government issuing money at a faster rate than the economy grows.
Wrong. That can be one mechanism of inflation, but not the only one. There are many more sources of inflation. For example, the new world gold mines.
> Any economic theory that creates something out of nothing is false - you don't need to understand it to know it is false.
As I said. I bet you've heard that your whole life, too. It's good to question things you've heard your whole life.
> Inflation comes from a imbalance in supply and demand.
Inflation comes from the government issuing money at a faster rate than the economy grows. The reason it does that is to spend more money without raising taxes. This is sold to the citizens as being "good", and any deleterious effects are blamed on mumbo jumbo theories like "wage-price spirals" and "cost-push".
Keep in mind that there's no free lunch when it comes to economics, just like there's no free energy in physics. Any economic theory that creates something out of nothing is false - you don't need to understand it to know it is false. Just like when some crackpot comes to you with a perpetual motion machine, you know it's a fraud even if you don't examine his theory to find out where he went into the ditch.