Posted on 02/14/2022 5:47:50 AM PST by UMCRevMom@aol.com
Inflation is blamed on many things. But it has only one cause: It is a monetary phenomenon. Inflation occurs when the quantity of money increases faster than the quantity of goods. Why does the money supply increase? Very often, it does so to enable the government to pay its bills without raising taxes. There's only one real cure for inflation. It is a cure that's easy to describe but difficult to apply: The government must reduce spending and print less money. The alternatives are both recession and double-digit inflation.
Milton Friedman Speaks: Money and Inflation (B1230)
- Full Video
https://www.youtube.com/watch?v=B_nGEj8wIP0
Milton is the reason why China is headed for world dominance. Milton forgot the old adage that there is more to life than money.
China Has Two Paths to Global Domination
https://foreignpolicy.com/2020/05/22/china-superpower-two-paths-global-domination-cold-war/
The past two years they increased the money supply 25%. What did they think was goin to happen? SMH
That might be arguable if the US (and the West generally) followed Friedman's advice. But the West is a Keynesian world now and has been for some time, and so we cannot lay responsibility for the current state of affairs at Milton's feet.
Friedman isn’t much in vogue these days, but he pretty much told it as it was (and still is).
Does he say what to do about it?
We should be past the ‘OMG we’re all gonna die’ stage by now and into the “Here’s what to do to protect yourself and prosper stage.
I miss Milty.
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