Inflation: The Most Dishonest Tax
29th October 2024
Those in power talk about inflation as if it’s a natural occurrence.
They’d have you believe that there’s no more sense in blaming government leaders for a bout of inflation than in blaming them for rainy weather on the weekend. This is nonsense.
The White House and Congress deserve to be blamed for inflation, because the amount of money the federal government spends determines the amount of money that the Federal Reserve creates, and that in turn determines how much inflation occurs.
The more money there is, the more inflation there will be.
When private individuals create money, they may face imprisonment for the crime of counterfeiting. Private counterfeiting is recognized as a form of theft: Counterfeit bills that are accepted and put into circulation increase the money supply and cause everyone’s dollars to be worth a little less.
When the government and the Federal Reserve expand the money supply, it has the same inflationary effect, only on a much larger scale and without the risk of imprisonment.