The Times’ story is noteworthy both for what it admits and what it conceals. Remarkably, it admits that the Administration bears no little responsibility for the ruinous rise in the cost of living, and that while there were causes other than the Administration’s policies, those policies have made things worse. But it conceals, not merely the gargantuan size of the Administration’s overreaction, but the key factor that made its over-reaction so damaging.
Our response to COVID wasn’t merely recklessly to goose the money supply. It was recklessly to goose the money supply while intentionally and substantially suppressing the production of goods and services through mandatory commercial and industrial lockdowns.
You don’t get inflation merely because there’s more money being created. You get it when there is money being created that does not correspond to, and instead exceeds, more goods and services getting supplied. It was the lockdowns as much as the antic expansion of the money supply that did us in and now spell so much trouble — specifically, recession — for the future.
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