President Joe Biden orchestrated a full on angry assault on American capitalism last night. He blamed inflation on American businesses and called shrinkage the root cause.
N.Y. Attorney General Letitia James, her campaign financier, George Soros, and President Biden continue an attack on free markets.
Once upon a time in America, supply and demand dictated what a company could charge for its goods and services. Biden believes the government has an obligation to set those business profit margins.
WHAT IS THE TRUE CAUSE OF INFLATION IN AMERICA?
Inflation is caused when the U.S. Government prints money. Biden’s promises during covid, led to the printing of payouts for everything from PPP monies, to illegal immigrant funding, to the Ukraine war and more.
As more money circulates within the economy, economic growth is more likely to occur at the risk of price instability.
When the growth of the money supply exceeds the growth of the overall economy, what happens?
Hyperinflation occurs when the gap between the growth of the money supply and the growth of the economy becomes too large.
What is the relationship between money supply and inflation?
Inflation and the money supply are related. The Federal Reserve increases the money supply, promotes economic growth, and makes debt cheaper to combat unemployment; however, these policies can also lead to inflation. Alternatively, the Federal Reserve tightens the money supply, constricts economic growth, and increases unemployment to combat inflation.
What is the effect of interest rates on inflation and money supply?
Changing the federal funds rate affects the cost of incurring debt. When the Fed raises interest rates, it becomes more costly to incur loans, more difficult for companies to grow, and more difficult for inflation to occur. Despite the fact that it is more likely to cause prices to rise, lowering interest rates promotes economic activity.
In a nutshell
More often than not, if the Fed attempts to stimulate the economy by growing the money supply, prices will rise, the cost of goods will be unstable, and inflation will most likely occur.
THE SIZE, SCOPE AND MIGHT OF GOVERNMENT CONTINUES TO GROW
In light of governments’ tendency to expand, the people incorporated the Bill of Rights into the Constitution as a safeguard for individual rights against government interference. It was intended to prevent the government from becoming too powerful and infringing on the economic and personal freedoms of Americans. Sadly, these freedoms are declining. The US has shifted from having minimal government involvement in the marketplace to being heavily driven by government influence in domestic economic affairs.
Think about it this way:
The government now employs more Americans than the entire manufacturing sector combined.
The federal government has spent $2.5 trillion on welfare and aid to cities over the past 25 years. This amount is enough to purchase all of the assets of Fortune 500 companies plus all of the farmland in the country.
In 1987, U.S. farmers received more government subsidies than they received for selling their crops in the marketplace, which means they now produce for the government, not for consumers.
Most of all middle-income family wages are currently captured by government through income, payroll, property, and sales taxes in three states—California, Maine, and New York.
What is the reason that the American public is not protesting? The answer seems to be that most Americans today probably believe that this is the way government in America ought to behave and has always behaved because the growth of government in America has been so gradual over the past 50 to 100 years.
DEMOCRATS ARE OPENLY ASSAULTING CAPITALISM
Former President Donald Trump is guilty of committing capitalism in the City of New York. Capitalism is now a crime in America.
The beef industry is finding a similar assault from N.Y. D.A. Letitia James.
State and Federal bureaucrats are attacking capitalism and eroding U.S. resident’s liberty in the process.
The author of this article, David Hucks, has a degree in Economics from Coastal Carolina University.