Who Caused High Prices in America?
By Rick Hayes
Inflation, the war between Russia and Ukraine, soaring crime rates, and Iran enriching Uranium. What else can go wrong?
It took some time, but President Biden finally admitted that inflation exists, but that's not saying much since a night out with the family or a simple glance at a grocery sales receipt would immediately confirm that.
The first question is who caused prices to climb and why? One way to find out is to understand what causes inflation. A common understanding of inflation is that it results from too much money circulating in the economy.
The great economist Milton Friedman once stated that
inflation is a dangerous disease for a society, and it is sometimes a fatal disease for a society.
In 1978, Friedman reminded those attending his lecture from the University of San Diego & San Diego Chamber of Commerce to "Recognize that today governments control the quantity of money." Friedman emphasized that inflation in the United States is made in Washington and nowhere else.
Friedman could have been commenting on recent speeches given by President Biden, who blamed inflation on the greed of corporate America when he said, "If you listen to people in Washington talk, they will tell you that inflation is produced by greedy businessmen." Friedman, the recipient of the 1976 Nobel Memorial Prize in Economic Sciences, made that observation 44-years before Biden took the oath of office.
Friedman added, "Business people don't produce inflation for the straightforward reason that they don't have a printing press in their basement. And so can't turn out those green pieces of paper called money."
The reason everyday expenses for Americans have skyrocketed and will continue to soar is the shortsighted policies of the Biden administration. President Biden and his administration are the sole architects of today's staggering inflation, and they did this by printing money.
It was apparent to anyone interested that the propaganda media had no desire to challenge Biden's mental ability, and Biden did not disguise his inflationary policies during the 2020 Presidential primaries. In the final analysis, if we accept that President Biden was nevertheless overwhelmingly elected as the most favored President in American history, then the American people who voted for him share the blame for the high price suffering in this country.
On the other hand, if the reality is that 81 million American people did not vote for Biden, inflation, open borders, and Putin invading Ukraine are the least of our problems.