Who should be very worried or not worried about inflation?
The Chicago Tribune Op -ed titled: Why I Am Not Worried (very) About Inflation, reported the writer opinion on Government to manage inflation. In this following statement:
“…it’s not unreasonable to believe that the Federal Reserve governors who set monetary policy actually know what they’re doing.”
The Purpose of This Post
Is to relate an ancient proverb which is wise advice when there is no inflation, and foolish when there is inflation.
The rich rule over the poor, and the borrower is slave to the lender. (Proverb 22:7)
What’s My Point?
The Chicago Tribune article is an opinion of the writer why he is not very concerned about inflation of the USA dollar.
However, missing from the article is information of who should be afraid of inflation and why.
My point is inflation hurts lenders more than borrowers and people on fixed incomes who rely on their savings accumulated in their working years. The government actually benefits by inflation.
In My Opinion,
If you read articles in the Source Links below, depending on whether you are a lender or borrower and your age, you may have good cause to be very worried about inflation.
In either case though, the USA presently owes 28 trillion dollars to lenders, and 78 percent of the lenders are average Americans who relied on government legislators to manage the debt of the Nation wisely rather than foolishly.
In other words, when we vote for legislators such as the present Democrats who are proposing new massive spending programs and showering free social benefit programs by paying for the programs by printing dollars and borrowing, the result is inflation when too many dollars are chasing available goods.
Sadly, holders of USA debt are mainly held by USA 78 percent of Americans and if they continue to vote for big spender legislators to represent them, they should be very worried about inflation in my opinion.
Who will voters blame for the excessive borrowing by our Nation’s legislators, or should the just accept the truth that they themselves are the blame for voting to elect free spending legislators and passing the debt on to their children?
Will the USA ever pay of the 28 trillion dollars in National Debt, or has it always been the plans of legislators. To borrow money for projects to get elected and pay the interest on the debt to lenders with inflated dollars.
Regards and goodwill blogging.
Chicago Tribune Op-ed
Who Does Inflation Hurt the Most?
Who Owns USA National Debt Bonds?
Causes of Inflation
Trickle-Down or Up Economics?