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Neither Government Spending Nor Fed "Printing" Caused Higher Prices

The article by John Tamny, published on Forbes, argues that neither government spending nor the Federal Reserve's money printing directly caused the recent surge in prices. Instead, Tamny posits that the price increases were a result of supply chain disruptions and shortages caused by various factors including government lockdowns, regulations, and other restrictions during the global health crisis. He explains that when goods and services become scarce due to these disruptions, prices naturally rise due to the basic economic principle of supply and demand. Tamny criticizes the common narrative that blames inflation on monetary policy or fiscal stimulus, suggesting that these are misinterpretations of economic causality. He further contends that the real culprits behind inflation are policies that hinder production and distribution, not the increase in money supply or government expenditure per se.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/johntamny/2025/01/26/neither-government-spending-nor-fed-printing-caused-higher-prices/ ]