We listened carefully to President Joe Biden's Tuesday night State of the Union speech for what he plans to do about our growing inflation disaster.
Corporations don't suddenly get "Greedy." And greed isn't the cause of inflation, as Nobel-winning economist Milton Friedman noted in perhaps his most famous pronouncement: "Inflation is always and everywhere a monetary phenomenon." Many others have said the same thing.
Despite being in Washington when the last great inflation occurred, Biden is about to make the same mistakes made by multiple presidents that let the inflation problem go from being a brushfire to an all-out conflagration.
As the useful reference Investopedia described the '70s failure to stop inflation, "It would take a brutal policy of tight money - including the acceptance of a recession - before inflation would return to low single digits. But, in the meantime, the U.S. would endure jobless numbers that exceeded 10%. Millions of Americans were angry by the late 1970s and early 1980s. In fact, it was a disaster."
It took a new president in a new decade, Ronald Reagan, and a resolute Fed chairman, Paul Volcker, to tackle inflation.
Blaming "Corporations" for their greed, which Biden falsely and maliciously claimed caused inflation.
Blaming inflation on corporate greed or holding out the prospect that capacity can be expanded rapidly is at best diversionary.
https://issuesinsights.com/2022/03/03/sorry-mr-president-but-inflation-isnt-due-to-greed/
No comments:
Post a Comment