Inflation
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It is hard to know how many bookshelves around the world are stacked with books about inflation. There are books on exactly what it is and why you would rather not have it. Others expound about how to prevent it, how to manage it, and how to cure it. There are even books on how to go about using it to your own advantage, but I have never seen a single book on how to purposely create it. Alas, but we now have in our midst a classic example of that very thing. Following is a brief discussion.
The everyday definition is, of course, too much money chasing too few goods and services. It is a bit more complicated than that but only a bit more. In a free-market economy, when consumers have discretionary income or savings that they are motivated to spend, they will spend it. When suppliers of goods and services sense that consumers want more than is available, they respond by raising prices, and therein lies the major cause of inflation.
Inflation is usually thought of as being across an entire nation but it can also exist within States or even locally.
If a State government wanted to create inflation within their own jurisdiction, they could start by employing the following methods.
- Stop the gig economy
- Ban trucks that don’t meet smog
- Prevent the building of warehouses next to ports
- After banning gig, require minimum wages
Overreacting to domestic crisis like communicable desease
Isolate the well instead of the sick
Tell workers they cannot go to work
Give workers who you say cannot work lots of free money
