What is the truth or fallacy of this conundrum, which if you read the various economist theories opinions data or comments may bring on dizziness? Or is the truth that Biden’s leadership economic policies are causing current inflation in the USA?
The Chicago Tribune has two articles which give clues to this conundrum. The first is titled. Inflation spike jolts Biden’s agenda. The second is Global chip shortage swaps power to chipmakers.
The Purpose of This Post
Is to relate an ancient wisdom verse, an idiom, and a definition of inflation for interested readers to discern the truth of this conundrum.
Every Economist Agreed to Definition of What Causes Inflation
Scarcity makes prices rise.
Though you grind a fool like grain with mortar and a pestle, yet his folly will not depart from him. Be sure to know the state of your flocks, and pay close attention to your herds; for riches are not forever, nor does a crown endure to every generation (Proverbs 27:22—24)
Idiom – idle hands are the devil’s tools
proverb When one is unoccupied or has nothing to do, one is more likely to cause or get into trouble.
What’s My Point?
Economists’ theories are unreliable because they have been proven over time to be wrong far too many times in USA history.
For example, if we google causes of inflation, it states
Summary of the main causes of inflation, we will read
Demand-pull inflation – aggregate demand growing faster than aggregate supply (growth too rapid) … or IMO – lack of Biden leadership long range planning.
Cost-push inflation – For example, higher oil prices feeding through into higher costs. …. Or IMO, Biden shutdown of domestic oil production
Devaluation – increasing cost of imported goods, and also the boost to domestic demand…. or IMO, Obama and previous leaders’ belief in a service economy, globalism, and allowing USA manufactures to outsource USA jobs.
Rising wages – higher wages increase firms costs and increase consumers’ disposable income to spend more…or IMO, what businesses must do to pass on labor costs or go bankrupt.
Expectations of inflation – High inflation expectations causes workers to demand wage increases and firms to push up prices…or IMO… what unions will do to protect their members when inflation occurs…and…to emulate what government employee’s union contracts a pension.
Yet, many conservatist economists believe the present policies of government printing money to spur domestic spending is the root cause.
However, many progressive economists believe the opposite as in an article in the Source Links below.
My point is to only to bring up the root cause or agreed to reason by all economists that inflation and to point out the main reason for purposed of this post.
In My Opinion,
The main reason Biden’s economic policies are serving now to fuel inflation is the same reason why past governments in history that act to fuel inflation.
That is to borrow money and raise taxes to pay the interest on the borrowed money, and same as a Ponzi scheme pay back the amounts borrowed with devalued inflation currencies.
However, according to the economist charts tracking inflation over the years, the root cause of an economist opinion and chart is that over the years the only factor than can be correlated to price inflation is the up and down prices of oil.
If this is correct, Biden’s decision to end Trumps economics for oil exploration in the USA is to a large extent on root cause of inflation.
The economist also claims to produce a theory that Deficit Spending is or printing dollars is not causing inflation and believes we should expand more deficit spending for social reasons.
However, he makes no mention of the real reason why there is a shortage of goods which the article about the shortage of computer chips reasons. That being that at one time the USA produced 62 percent of computer chips now only produces 12 percent while the demand for chips in the world has grown.
Add that the ports to unload foreign made goods into the USA or backed up causing delays of all other goods no longer manufactured in the USA to exasperate shortages, the result is inflation and USA plant layoffs because of material shortages.
Then add, that because of Obama decision that the USA is a service economy and that manufacturing will never return to the USA served to deplete training and experiences of skilled workers from being trained to manufacture goods instead of working in warehouses to stock foreign goods with their hands or to focus on computers technology instead of working hands and minds to produce goods.
Add that the number of workers is in short supply now because of fear of Corona virus because Biden allowed the Delta virus to expand by not doing what Trump did to stop entry in the USA from India, Africa, England, and perhaps refugees from the southern borders.
Add that there are millions of idle men in jails doing nothing to pay for their keep, and millions of government workers expanded to work on government social agendas using computers instead of hands.
If we relate the ancient proverb advice that a wise King responsibility in the above proverb, the idiom, we will better understand how government foolish economic disdains to pick and choose economists theories and ignore history of reasons for failed Democrat Republics currencies resulted in inflation.
Or in other words, government advice to leaders to wise up to the above proverbial wisdom advice written 3000 years ago which in the herds in our contemporary times can be related to outsourcing manufacturing and printing dollars to pay for global goods, engaging in wars without war taxes, and subsidizing social programs without requiring people to not work and be idle is the main cause for both inflation and a repeat history result what happens to all borrowers according to this following proverb.
The rich rules over the poor, And the borrower becomes the lender’s slave. (Proverb 22:7).
Read the Source Links below
Has past and present USA Government Leadership folly the main reason now repeating the same causes of dollar inflation?
Are USA dollars trade imbalances allowing the rich in other Nations to buy out USA Corporations, land, and property in the USA going to result over time for the future generations of Americans to be slaves to the lenders?
Do we need an economist inflation or moral theories of wise practical and Spiritual leaders and voters to return the lost power back from the “another’s hands entity described by Paul Harvey broadcast in 1966 causing idleness of hands and minds now resulting in the USA?
Regards and goodwill blogging.
Chicago Tribune – Star Tribune – Feature Image
Chicago Tribune – NYT – Global Chip Shortage
Causes of Inflation – Not Deficit Spending