John Stossel Explains Inflation in Terms Even Biden Could Understand – IOTW Report

John Stossel Explains Inflation in Terms Even Biden Could Understand

PJ Media

Prices change because of supply and demand.

Inflation results “from too much money chasing too few goods,” explains [economist David] Henderson. “If government’s spending more money, that’s more money chasing too few goods.”

Lately, government borrowed from the Fed, and spent much more money. Under President Donald Trump, the national debt rose $7.8 trillion. Under President Joe Biden, it’s grown $2.2 trillion in just one year. Biden wants to spend even more — a record $6 trillion this year.

Where will they get the money? Government has no money of its own, so increased spending means politicians must borrow more, tax more, or, easiest of all, create money out of thin air by just printing it.

In the last few years, that’s what they did. In an untested experiment, the Fed printed more money than ever in history.

All this new money sloshing around the economy makes money we have less valuable. You notice the price increases, but you may not notice the damage inflation does to your savings. More

6 Comments on John Stossel Explains Inflation in Terms Even Biden Could Understand

  1. Well, that’s why you need gold Roosters, Sovereigns, Half Sovereigns, and bars of silver. And ammunition. And canned food. And dry food.

    5

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