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Inflation Is Going Away, But for Reasons You’re Not Told (Guest: Donald Luskin)

August 23, 2022

The government wants you to think its policies are reducing inflation. This isn’t the truth.

The government wants you to think its policies are reducing inflation. This isn’t the truth. Inflation is going away because government money infusion is over. Inflation is always a monetary problem of too much money chasing too few goods. The COVID lockdown saw the greatest infusion of money in the shortest time in the history of the world at a time when the economy that was shut down. That spending is over and the economy is turning out goods and services again, so the cause of the inflation has ended. Neither the inflation reduction act nor the Federal Reserve raising interest rates is responsible for the waning inflation, but they could bring it back.

Article Tags
Government Spending
Author
H. Sterling Burnett, Ph.D., is the Director of the Arthur B. Robinson Center on Climate and Environmental Policy and the managing editor of Environment & Climate News.
hsburnett@heartland.org