Inflation is a persistent increase in the general price level of goods and services due to several factors that can be planned for and controlled in an economy over time.
There are two types of inflation:
– Price increases due to increases in wages, production costs and lack of supply
– An increase in the money supply by The Federal Reserve and The U.S. Treasury
Here are some ways we as a nation can combat inflation:
- Monetary policy: The government can use monetary policy to control inflation by adjusting the interest rates. Increasing interest rates makes borrowing more expensive, which reduces consumer spending, thus decreasing demand and prices. Conversely, decreasing interest rates encourages borrowing, spending and can increase demand and prices. We are suffering from an age of easy money brought about by the emergency monetary policies of the 2008 Financial Crisis. Back then, interest rates were around 6.5% and we’re considered moderate at the time. When the 2008 Financial Crisis demolished credit and the housing market, The Federal Reserve lowered rates to zero to actually negative and did not start raising rates at a strong enough pace to be able to deal with whatever was coming at us next… enter the pandemic.
- Fiscal policy: Fiscal policy refers to government spending and taxation policies. The government can increase taxes and decrease spending to reduce the amount of money in circulation, which can lower demand and prices, which in turn can help to reduce inflation. Yeah… a democrat president will raise taxes, just wait and see. Biden will raise taxes but the only people that will notice is the educated conservative, like most of my clients.
- Supply-side policies: Policies that aim to increase the supply of goods and services can also help to combat inflation. This can be achieved by reducing taxes or regulations that make it difficult for businesses to expand or enter the market, and by investing in infrastructure and education. Given the “plandemic” impact on employment, we see labor shortages across the board. Maybe a good policy would be to pay people to actually work instead of paying them to stay home? Just a thought
- Wage and price controls: Governments can try to control inflation by implementing wage and price controls. However, these policies can be challenging to enforce and can have unintended consequences. For instance, price controls can lead to shortages, and wage controls can create disincentives for workers to improve productivity. This is probably the area where Biden will focus because it’s mostly corporate focused and will show his woke supporters that he’s completely for socialism. If you are woke and reading this, you might want to educate yourself a bit on fascism and stop flicking that moniker around for conservatives. Fascism is exactly what you describe as your end all be all for the nation. Check your facts.
- Open market operations: The government can use open market operations, which is the buying and selling of government bonds in the market to control the money supply. The government can increase the money supply by buying government bonds, and decrease the money supply by selling them. Since the dollar is now nothing, the selling of government bonds got us into this mess in the first place. Who owns the most U.S. government bonds? That’s right… China and Japan. How am I doing so far?
It is worth noting that controlling inflation is not always straightforward, and the effectiveness of these policies can vary depending on the circumstances. Thus, a combination of different policies and strategies may be needed to combat inflation successfully. However, a good throttling of the economy at this level would be good but we don’t have the leadership in the White House for that.
Keep in mind, I have left the republican party. I resigned from being a precinct chair and precinct committeewomen. We need leadership. Leaders that are willing to lay their reputations on the line to save the nation, not just the party of their choice, their livelihood or to stroke their own ego.
We must be loud and organized… is it time for a 3rd party?
Join REDLine Conservatives Municipal Candidate Meet and Greet April 21st 11:30am at La Hacienda de los Barrios. Free food and drink for those in attendance!
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