https://noqreport.com/2022/04/12/why-just-print-more-money-was-always-a-terrible-and-dangerous-idea/

The government published new inflation data on Tuesday. The results, unfortunately, are more bad news.

The Wall Street Journal reports that US inflation hit a four-decade high of 8.5 percent in March compared to one year earlier, driven largely by surging food and energy prices, supply chain problems, and increased consumer demand for goods.

“The Labor Department on Tuesday said the consumer-price index—which measures what consumers pay for goods and services—in March rose at its fastest annual pace since December 1981, when it was on a recession-induced downswing after the Federal Reserve aggressively tightened monetary policy,” writes Journal reporter Gwynn Guilford.

Americans hardly need to be told prices are rising sharply. They feel the pain at the pump ($4.32 a gallon for gasoline) and at the grocery store when they pay $4 for a dozen eggs, $3 for a carton of milk, and $18 for a ribeye steak that was $14 a year ago. They feel it when they go out to the local Mexican restaurant and their bill is $20 higher than it was the last time. They feel it when they get a shocking quote for home repairs from a contractor, who apologetically explains those high lumber prices are back.

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Everyone is feeling the inflation pinch. A recent Wharton School of Business analysis found that the average US household spent $3,500 more in 2021 on goods and services because of inflation.

Inflation is a serious problem with real consequences, which is why it’s so important to understand why it’s happening. Some politicians, such as Sen. Elizabeth Warren, would like you to believe that inflation is caused by corporate greed. But even left-leaning economists from the Obama administration have pointed out Warren’s economics are wildly off base.

The real reason we’re seeing the highest inflation in generations is because of the steps taken by the federal government during the pandemic. In an effort to keep the US economy afloat as politicians shut down the economy, the Federal Reserve began aggressively printing trillions of dollars, swelling the Fed’s balance sheet to nearly $9 trillion in 2021.

“You flooded the system with money,” 60 Minutes journalist Scott Pelley said in a 2021 interview with Federal Reserve Chairman Jerome Powell.

“Yes, we did,” Powell replied. “That’s another way to think about it. We did.”

There was never any question the Fed’s action would cause inflation. The only question was how much. Now we know.

You see, you can’t just print vast quantities of money without consequences. There’s a great episode of Common Sense Soapbox that explains why. In the episode, Bob’s father “Ron” explains that money “doesn’t grow on trees.”

“Why not just pwint mo money?” Bob’s baby brother says. “Den Bob can have some mo.”

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Bob’s baby brother is then told why the government can’t just print money to solve its problems.

“Printing more money can be a very bad idea. It results in the money we already have losing its value,” says Seamus. “In the short term, it may not seem like it costs you. But in the long run, it results in all of your money being worth less than it was before. So it’s basically just a hidden tax.”

The federal government took its monetary experiment to new heights during the pandemic, and Americans are now experiencing the results. But in order to solve the problem, Americans need to understand how this inflation arrived.

It’s one thing when Bob’s baby brother doesn’t understand the problem with printing money. Politicians should know better.

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This article was adapted from an issue of the FEE Daily email newsletter. Click here to sign up and get free-market news and analysis like this in your inbox every weekday.

Jon Miltimore

Jon Miltimore

Jonathan Miltimore is the Managing Editor of FEE.org. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune.

Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times.

This article was originally published on FEE.org. Read the original article.

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New Conservative Network Seeks Crowdfunding Help

They say we have to go big or go home. We’re trying to go big and bring the patriotic truth the the nation, but we need help.

Readers may or may not realize that over the past year, we’ve been bringing more conservative news and opinion outlets under our wing. Don’t take our expansion as a sign of riches; all of the “acquisitions” have been through sweat and promises of greater things to come for all involved. As a result, we’ve been able to bring together several independent media sites under a unified vision of preventing America from succumbing to the progressive, “woke,” Neo-Marxist ideologies that are spreading like wildfire across America.

The slow and steady reopening of America is revealing there was a lot more economic hardship brought about from the Covd-19 lockdowns than most realize. While we continue to hope advertising dollars on the sites go up, it’s simply not enough to do things the right way. We are currently experiencing a gap between revenue and expenses that cannot be overcome by click-ads and MyPillow promos alone (promo code “NOQ” by the way).

To overcome our revenue gap and keep these sites running, our needs fluctuate between $3000-$7000 per month. In other words, we’re in the red and hemorrhaging.

The best way you can help us grow and continue to bring the truth to the people is by donating. We appreciate everything, whether a dollar or $10,000. Anything brings us closer to a point of stability when we can hire writers, editors, and support staff to make the America First message louder. Our Giving Fuel page makes it easy to donate one-time or monthly. Alternatively, you can donate through PayPal as well.

As the world spirals towards radical progressivism, the need for truthful journalism has never been greater. But in these times, we need as many conservative media voices as possible. Please help keep NOQ Report and the other sites in the network going.

Thank you and God Bless,
JD Rucker

Bitcoin: 32SeW2Ajn86g4dATWtWreABhEkiqxsKUGn

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All ORIGINAL content on this site is © 2021 NOQ Report. All REPUBLISHED content has received direct or implied permission for reproduction.

With that said, our content may be reproduced and distributed as long as it has a link to the original source and the author is credited prominently. We don’t mind you using our content as long as you help out by giving us credit with a prominent link. If you feel like giving us a tip for the content, we will not object!

JD Rucker – EIC
@jdrucker


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