December 28, 2021

The supply chain woes continue, unabated

There are supply chain issues, no doubt.  They have have not been fixed. They are not the biggest factor in creating inflation, that would be money printing.  But supply chain issues do shift the supply curve and fewer goods, mean higher prices.  That's fundamental economics.  But so too is money printing leading to inflation.  

The point here is that the Let's Go Brandon administration has left the supply chain issue in a terrible state,  and the apparently progressive federal reserve has kept the minting of more currency going (they keep threatening to taper the monetary stimulus but have yet to do so, and are also erroneously keeping interest rates low allowing inflation to surge).  Meanwhile the administration is trying to push for trillions more in spending that supposedly is 'free'. They are wrong on all counts and as long as this continues, inflation will only get worse.

NOTE: I know these explanations are all too brief, but the underlying truths are still valid. A fiscal policy of spend, spend spend, and a very loose monetary policy are a deadly combination. They will turn America into Turkey or Venezuela if they are not stopped. The thin wall against it right now is Democrat Joe Manchin. We cannot rely on his steadfastness and resoluteness to go on indefinitely.

No comments:

Post a Comment

Disagreement is always welcome. Please remain civil. Vulgar or disrespectful comments towards anyone will be removed.

Related Posts Plugin for WordPress, Blogger...

Share This