Writes Bill Madden: Rising prices are the result of inflation which is caused by increasing the money supply in excess of the goods and services available in the marketplace. Surplus budgets cause the economy to contract while deficit budgets stimulate economic expansion. Since we are controlled by very wealthy families owning most of Corporate America’s stock, we have enjoyed mostly deficit budgets since the end of WW II and, as a consequence, the wealthy families have enjoyed healthy quarterly profit distributions. When we have an economic contraction, many assets like homes, automobiles, etc. are lost to the lenders via bankruptcy … Continue reading
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