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That is simply not true and really bad economics
Posted on: July 24, 2022 at 18:41:11 CT
ScottsdaleTiger MU
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Yes, an increase in the money supply occurs in inflation, but it is the RELATIONSHIP BETWEEN THE MONEY SUPPLY AND THE SUPPLY OF GOODS that determines whether or not inflaction occurs. It's the rate at which both are growing.
Inflation is simply the money supply growing faster relatively than the increase in goods and services.
For example, gasoline has risen substantially in price. The reason is the supply of gas has not grown as rapidly as the demand. If you go back to fracking, finishing the Keystone Pipeline and allowing reasonable exploration, the supply of gas will increase and when it does, the price will decline.
Biden intentionally took action that would likely limit the supply of gas in order to create an incentive for folks to switch to electric vehicles.
Edited by ScottsdaleTiger at 18:44:46 on 07/24/22
Inflation is simply the money supply growing faster relatively than the increase in goods and services.
For example, gasoline has risen substantially in price. The reason is the supply of gas has not grown as rapidly as the demand. If you go back to fracking, finishing the Keystone Pipeline and allowing reasonable exploration, the supply of gas will increase and when it does, the price will decline.
Biden intentionally took action that would likely limit the supply of gas in order to create an incentive for folks to switch to electric vehicles.
Edited by ScottsdaleTiger at 18:44:46 on 07/24/22
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That is simply not true and really bad economics - ScottsdaleTiger MU - 7/24 18:41:11