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#shorts #JordanPeterson #JordanBPeterson #DrJordanPeterson #DrJordanBPeterson #DailyWirePlus #inflation #government #economics…(read more)
HOW TO: Hedge Against Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
How The Government Creates Inflation
Inflation, defined as the sustained increase in the general price level of goods and services in an economy, is a widely discussed topic in both economic and political circles. While market forces and external factors can drive inflation to some extent, it is important to acknowledge the impact governments can have on creating and controlling inflation. This article aims to explore the ways in which government actions contribute to the creation of inflation.
1. Monetary Policy:
One of the primary tools governments use to influence inflation is through monetary policy. The central bank, in most cases, controls the money supply within the country. By manipulating interest rates or implementing quantitative easing, governments can influence borrowing costs, money supply and spending, which in turn can affect the general price level. Lower interest rates encourage borrowing and stimulate economic growth, but can also lead to increased demand and a potential rise in prices.
2. Fiscal Policy:
Governments can also create inflation by their fiscal policies. Fiscal policies involve decisions related to government spending, taxation, and borrowing. When a government increases spending while funding it through borrowing or printing money, more money enters the economy, leading to an increase in demand for goods and services. This excess demand can put upward pressure on prices, resulting in inflation.
3. Wage-Price Spiral:
Governments can indirectly induce inflation through labor market policies. When governments enforce minimum wage laws or negotiate higher wages for public employees, it can lead to an increase in labor costs for businesses. In order to maintain profit margins, businesses may pass on these increased labor costs to consumers in the form of higher prices. This can initiate a cycle where workers demand higher wages to combat rising prices, further driving up production costs and prices.
4. Tariffs and Trade Policies:
Government decisions on trade policies, such as imposing tariffs or import restrictions, can affect the cost of imported goods. When tariffs are imposed, the cost of imported goods increases, which can lead to higher prices on those goods for consumers. This can also incentivize domestic producers to raise their prices as they face reduced competition from cheaper imported alternatives. Therefore, such policies can contribute to inflation.
5. Expectations and Credibility:
Finally, government actions and credibility play a significant role in shaping inflation expectations. If the public expects that the government will employ expansionary policies leading to inflation, they may alter their behavior accordingly. Consumers may anticipate future price increases and adjust their spending habits, causing an increase in demand and potentially further fueling inflation.
While governments may not directly control all aspects of inflation, their policy choices and actions can heavily influence its magnitude and persistence. It is crucial for governments to strike a delicate balance between economic growth and price stability, as excessive inflation can erode the purchasing power of individuals and hinder economic development. Understanding the impact of government actions on inflation provides insight into the complex dynamics of the economy and aids in formulating effective policies to mitigate or control inflationary pressures.
That’s actually not true… inflation has secondary causes, and it is actually A! Sign of a healthy economy. You NEED it to grow… it’s a frustrating aspect of capitalism that means you will pay more but it is necessary….
Inflationary DEBT is what the Democrats created by printing monopoly money with no backing of substance ie GOLD, SILVER, PLATINUM etc . Which over inflated costs to consumers
and is causing more poverty…
This could be quickly corrected by releasing US ENERGY from ridiculous constraints!!! Fossil Fuels are not the problem…
SOLAR FLARES ARE CAUSING RISI G TEMPERATURES AND CLIMATE CHANGES!
I wouldn't say the government creates inflation. More like it controls it. So many factors influence inflation.
Can someone tell me where I can find the whole video?
OPEC drove inflation in 1973, without reference to money supply. This guy is a bullshit artist.
No. Price and wage increases can be driven by multiple factors. Beware oversimplifications by ''shiny people''.
Well, we have to differciate Here. "Printing" Money IS a reason for Inflation. But you also have to See that the If the general economical supply of goods IS shrinking as it is right now (even though there is rooms for discussion on todays Inflation), Money cant buy that much goods. So its loosing value. Please dont live in the Bubble and educate yourself. Its Not wrong what He says, but its Just Not everything that has to be Said.
A perfect storm is brewing in the United States. Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.
True
tax is theft so is inflation
if money is digital it's infinite if controlled by a dude with a keyboard.
I learned this in my Economics class in 1983. Now the blame of inflation is put on the “evil” corporate entities rather than where the blame belongs—big government.
" Imagine fuckin everyone and they applaud you "
Good CALL TY
"No shit I never knew this good job"
Correction: the Federal Reserve is not the government.
Send this to Jerome Powell
It’s just another scam created by governments that people voted for then get screwed anyway
I think dilution would be a more appropriate word. It invokes the reality of what happens more and instills the sense of losing something in the process.
Thanks bud for keepin us financially Educated! Regardless of how bad it gets on the economy, I still make over $22,000 every single week.
“Inflation is just a word.. like you inflating a balloon” …. I wouldn’t be surprised if this guy has a butler with an American express that does his grocery shopping at Versace
But WHY do they expand/inflate the money supply?
Because they're skimming/stealing large portions of fake money off the top for themselves and to pay for their pet projects around the world that keep their currency at the top of the food chain.
We've got an old bat who looks like a dodo bird printing money to combat inflation
Inflation refers to prices going up. Not more money being printed.
Don’t forget about shrinkflation
Brilliant ✨
Brilliantly and simply put. Now, go read the Creature from Jekyll Island!
I love how this guy thinks everyone is so stupid that we dont know what inflation is and how it works. I went to a shit school in poor area and my high school economics teacher still taught us what inflation is and what it means lol
When the total money goes up, your total percentage of that money goes down. Ie. you’re money has less value ie. you lose money all because the government printed more money that it now has…
so the more dollar made the less dollar worth?
Yep
You can't have both money and God Jordan. The 4TH Trumpet was in April 2020, The day without a "third" of time was the weekend after Easter. A third of Mankind Dies soon Jordan.
Let's not redo the 1930s in the 2030s
Inflation is a robbery
It is also created when you give trillions of dollars worth of tax breaks to the rich.
There are few accidents in government, everything is premeditated
This is an intellectually lazy definition.
The government could secretly create a $trillion coin and not release it in circulation and nobody would notice but according to Peter's definition that would be called inflation.
Frankly I don't give a damn what happens to the money supply as long as prices don't outgrow wages at the dangerous pace that Biden created. Buying power is in the toilet
Inflation is the de-valuating of a fiat currency.