Why Democrats can't handle inflation

There are only two fixes for inflation: reduce the supply of money, or increase the supply of goods and services. How do you reduce the supply of money? There are four ways to do this:

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1. Slash public spending, so the government is injecting less money into the economy.
2. Raise interest rates, which puts recessionary pressure on the economy.
3. Raise taxes without raising spending, so the government is extracting more money from the economy.
4. Incentivize a shift from spending to savings, which reduces the amount of money chasing goods and services.

Increasing the supply of goods and services can really only be done by government by lowering the cost of supply — either by reducing regulatory burdens, eliminating environmental roadblocks to drilling and other development, cutting business taxes, reducing trade barriers, or pursuing other efforts to get government out of the hair of business.

Nowhere on this list is anything Democrats prefer to do, with the arguable exception of tax hikes — and when Democrats promote tax hikes, they almost always do it in conjunction with even larger increases in spending.

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