Changes

[[File:Let's Go Brandon2.JPG|right|200px|thumb|As inflation ravaged America after the [[U.S. Color Revolution|2020 Socialist putsch]], consumers revolted.]]

[[File:Word-image-70913-5.png|right|300px|thumb|The inflation cycle.<ref>https://internationalman.com/articles/the-debt-spiral-that-ends-in-dollar-destruction-6-hard-truths-america-can-no-longer-ignore/</ref>]]

In economics, '''Inflation''' is a general increase in the cost of goods and services compared with the value of the currency used to purchase them, which can be due to a variety of causes including higher energy prices as occurred in the 1970s. "Today, mainstream economists hold the notion that inflation is an increase in the price of goods or services."<ref name="Fee">[https://fee.org/articles/the-definition-of-inflation-is-incomplete/?gad_source=1&gclid=CjwKCAjw9cCyBhBzEiwAJTUWNZJjR-wz-VJBcu0ACqMSXwEaGQlegSUC2kochazNIrZn262r_blvjhoCLuoQAvD_BwE The Definition of Inflation Is Incomplete]. ''FEE''. May 12, 2019</ref>  Another definition of inflation is an increase in the [[money supply]], as in a government printing more dollars, in excess of the production of goods and services.<ref>Inflation is not caused by [[global warming]] or any natural phenomenon. Inflation is caused directly by the people whom voters elect to office.</ref>  By inflating the money supply, the [[U.S. Congress]] devalues everyone's savings, and increases interest costs on its [[deficit spending]].  In 2021, President [[Biden]]'s $1.9 trillion [[COVID-19|Covid]] spending caused inflation to spike to its highest level in 40 years.<ref>https://www.msn.com/en-us/money/markets/biden-e2-80-99s-2419-trillion-win-on-covid-aid-hobbles-rest-of-agenda/ar-AAUpZ42</ref>  A currency becomes worthless when there is [[infinite]] inflation.

In economics, '''Inflation''' is a general increase in the cost of goods and services compared with the value of the currency used to purchase them, which can be due to a variety of causes including higher energy prices as occurred in the 1970s. "Today, mainstream economists hold the notion that inflation is an increase in the price of goods or services."<ref name="Fee">[https://fee.org/articles/the-definition-of-inflation-is-incomplete/?gad_source=1&gclid=CjwKCAjw9cCyBhBzEiwAJTUWNZJjR-wz-VJBcu0ACqMSXwEaGQlegSUC2kochazNIrZn262r_blvjhoCLuoQAvD_BwE The Definition of Inflation Is Incomplete]. ''FEE''. May 12, 2019</ref>  Another definition of inflation is an increase in the [[money supply]], as in a government printing more dollars, in excess of the production of goods and services.<ref>Inflation is not caused by [[global warming]] or any natural phenomenon. Inflation is caused directly by the people whom voters elect to office.</ref>  By inflating the money supply, the [[U.S. Congress]] devalues everyone's savings, and increases interest costs on its [[deficit spending]].  In 2021, President [[Biden]]'s $1.9 trillion [[COVID-19|Covid]] spending caused inflation to spike to its highest level in 40 years.<ref>https://www.msn.com/en-us/money/markets/biden-e2-80-99s-2419-trillion-win-on-covid-aid-hobbles-rest-of-agenda/ar-AAUpZ42</ref>  A currency becomes worthless when there is [[infinite]] inflation.

Inflation robs workers of the wealth and the value of their labor and discourages savings, investment, and [[capital]] accumulation.<ref>See Matt 10:10: ''the workman is worthy of his meat''</ref> Inflation creates panic buying, as workers spend their paychecks quickly before their money loses further value.  Inflation is a hallmark of [[Socialism]].

Inflation robs workers of the wealth and the value of their labor and discourages savings, investment, and [[capital]] accumulation.<ref>See Matt 10:10: ''the workman is worthy of his meat''</ref> [[John Maynard Keynes]] in ''Economic Consequences of the Peace'' said,

Inflation creates panic buying, as workers spend their paychecks quickly before their money loses further value.  Inflation is a hallmark of [[Socialism]].

High inflation undermines the [[economy]]'s ability to generate long-lasting growth and job creation.  High inflation erodes the value of incomes and savings. People on fixed incomes, including the elderly and poor are particularly vulnerable to inflation. [[Social Security]] payments are adjusted to inflation months or years after the fact and typically when inflation has already accelerated to higher levels.  

High inflation undermines the [[economy]]'s ability to generate long-lasting growth and job creation.  High inflation erodes the value of incomes and savings. People on fixed incomes, including the elderly and poor are particularly vulnerable to inflation. [[Social Security]] payments are adjusted to inflation months or years after the fact and typically when inflation has already accelerated to higher levels.  

Inflation is caused when a government's appetite for spending on popular vote-buying schemes exceeds its budget, flooding the country with excess currency, and leading to a general rise in the price level of a limited supply of goods and services. When businesses pass along their costs to consumers to remain in business, [[Marxist]]s blame the "greedy" businessman rather than their [[statist]] allies in government who authorized the spending.  One of the primary purposes of an inflationary policy is to foment [[class warfare]], pitting citizens against citizens, rather than holding politicians responsible for the decline in living standards for which they hope to benefit by authorizing more inflation and another round of social spending.  Under the socialist [[Biden regime]] and its transition to a socialist economy, inflation reached a 40-year high during its first 10 months with no end in sight.<ref>Mark Moore, "[https://nypost.com/2021/11/24/over-75-of-us-hit-by-inflation-and-most-blame-joe-biden-poll/ More than 75% of US hit by inflation and most blame Biden, poll shows]," NYPost, Nov 24, 2021</ref>

Inflation is caused when a government's appetite for spending on popular vote-buying schemes exceeds its budget, flooding the country with excess currency, and leading to a general rise in the price level of a limited supply of goods and services. When businesses pass along their costs to consumers to remain in business, [[Marxist]]s blame the "greedy" businessman rather than their [[statist]] allies in government who authorized the spending.  One of the primary purposes of an inflationary policy is to foment [[class warfare]], pitting citizens against citizens, rather than holding politicians responsible for the decline in living standards for which they hope to benefit by authorizing more inflation and another round of social spending.  Under the socialist [[Biden regime]] and its transition to a socialist economy, inflation reached a 40-year high during its first 10 months with no end in sight.<ref>Mark Moore, "[https://nypost.com/2021/11/24/over-75-of-us-hit-by-inflation-and-most-blame-joe-biden-poll/ More than 75% of US hit by inflation and most blame Biden, poll shows]," NYPost, Nov 24, 2021</ref>

==Monetary theory==

==Monetary theory==

==Hyperinflation==

==Hyperinflation==

[[Image:Wheelbarrow money.jpg|right|thumb|A wheelbarrow full of printed currency during the Weimar Republic.]]

[[Image:Wheelbarrow money.jpg|right|thumb|A wheelbarrow full of printed currency during the Weimar Republic.]]

[[Hyperinflation]] is out-of-control inflation and occurs when there is a massive imbalance between supply and demand and a complete loss of confidence in the [[currency]].  Currency is still being printed in large quantities without a corresponding increase in the amount of goods and services available.  It has occurred when price controls are dropped by central governments, like in the [[economic collapse]] of the [[USSR]], where inflation reached over 1000% in some areas.<ref>[http://globalis.gvu.unu.edu/indicator.cfm?IndicatorID=152&Year=1995&Country=UA] Inflation Indicators Ukraine</ref>  Price controls have always proven to be an ineffective, if not disastrous response.

[[Hyperinflation]] is out-of-control inflation and occurs when there is a massive imbalance between supply and demand and a complete loss of [[confidence]] in the [[currency]].  Currency is still being printed in large quantities without a corresponding increase in the amount of goods and services available.  It has occurred when price controls are dropped by central governments, like in the [[economic collapse]] of the [[USSR]], where inflation reached over 1000% in some areas.<ref>[http://globalis.gvu.unu.edu/indicator.cfm?IndicatorID=152&Year=1995&Country=UA] Inflation Indicators Ukraine</ref>  Price controls have always proven to be an ineffective, if not disastrous response.

The worst episodes of hyperinflation historically have been in [[Weimar Germany]] in 1923 (after [[World War I]]), [[Hungary]] and [[China]] after [[World War II]], [[Chile]] under [[Salvador Allende]], and [[Zimbabwe]] in the late 2000s.

The worst episodes of hyperinflation historically have been in [[Weimar Germany]] in 1923 (after [[World War I]]), [[Hungary]] and [[China]] after [[World War II]], [[Chile]] under [[Salvador Allende]], and [[Zimbabwe]] in the late 2000s.

==Political instability==

==Political instability==

In some societies, political decisions control the supply of currency.  If a [[fiat currency]] is devalued due to an increase in the total [[money supply]], inflation will result.

In some societies, political decisions control the supply of currency.  If a [[fiat currency]] is devalued due to an increase in the total [[money supply]], inflation will result.

Bruce Bartlett wrote:

Bruce Bartlett wrote:

{{cquote|It is true inflation fundamentally is a monetary phenomenon. The inflation of the 1970s came about primarily because [[Federal Reserve|Fed]] chairman Arthur Burns gunned the [[money supply]] to get [[Richard Nixon]] re-elected in 1972. He was followed by G. William Miller, appointed by [[Jimmy Carter], who didn’t have a clue about [[monetary policy]] and only made the dismal inflation situation he inherited far worse.<ref>https://heartland.org/opinion/ronald-reagans-fight-against-inflation/</ref>}}

{{Cquote|It is true inflation fundamentally is a monetary phenomenon. The inflation of the 1970s came about primarily because [[Federal Reserve|Fed]] chairman Arthur Burns gunned the [[money supply]] to get [[Richard Nixon]] re-elected in 1972. He was followed by G. William Miller, appointed by [[Jimmy Carter]], who didn’t have a clue about [[monetary policy]] and only made the dismal inflation situation he inherited far worse.<ref>https://heartland.org/opinion/ronald-reagans-fight-against-inflation/</ref>}}

 

To an able-bodied person living on the dole with automatic "cost of living increases," the rate of inflation makes no difference. Whereas to a worker, saddled with the cost of supporting everyone who receives government support or subsidies, the dollar value of their labor to support themselves diminishes in real-time.  

To an able-bodied person living on the dole with automatic "cost of living increases," the rate of inflation makes no difference. Whereas to a worker, saddled with the cost of supporting everyone who receives government support or subsidies, the dollar value of their labor to support themselves diminishes in real-time.