How long has China been patiently growing their economy over the many years of the trade imbalance being in their favor? Did their economy benefit from that trade imbalance?
As far as the Nobel Prize is concerned, economics is not very scientific. It's highly political in nature so the appeal to authority trick isn't going to work. Let me guess, that pin head Paul Krugman is one of them. Listen to that moron at your own peril. Inflation is largely due to printing money we don't have to pay off ever increasing debt, trillion dollar do nothing bills, and increasing the size of government endlessly. Do your self a favor and start listening to someone that can actually explain how important fiscal policy is, instead of deferring to authority. Remember, all those so called experts are largely wealthy individuals and they are not affected by inflation, the little guy is. They don't have your best interests in mind, only their political friends interests.
Thomas Sowell got it right (note bullet #3):
- Inflation as a hidden tax: Sowell believes that inflation is a way for governments to transfer wealth from individuals to themselves without openly raising taxes. He argues that inflation reduces the purchasing power of people’s savings, effectively taking away their wealth.
- Government’s role in inflation: Sowell attributes inflation to government policies, particularly monetary policy and fiscal policy. He believes that governments often create inflation by printing more money, which increases the money supply and reduces the value of each individual unit of currency.
- Impact on different segments of society: Sowell notes that inflation has different effects on different segments of society. Those who own assets, such as real estate or stocks, may benefit from inflation as the value of their assets increases. However, those who do not own assets, such as low-income individuals or those living on fixed incomes, may be disproportionately affected by inflation as the purchasing power of their money decreases.
- Consequences of inflation: Sowell warns that inflation can have far-reaching consequences, including reduced economic growth, increased uncertainty, and decreased savings rates. He also believes that inflation can lead to a decline in the standard of living, as people become less confident in the value of their money.
- Inflation and government spending: Sowell argues that government spending and deficit financing can contribute to inflation. He believes that when governments spend more than they take in through taxes, they must finance the shortfall by printing more money, which can lead to inflation.
Some notable quotes from Thomas Sowell on inflation include:
- “Inflation is in effect a hidden tax.”
- “The money that people have saved is robbed of part of its purchasing power, which is quietly transferred to the government that issues new money.”
- “Inflation is a quiet but effective way for the government to transfer resources from the people to itself, without raising taxes.”
Overall, Thomas Sowell views inflation as a significant economic issue that can have far-reaching consequences for individuals and society as a whole. He believes that governments must be careful to manage the money supply and fiscal policy to avoid inflation and promote economic growth and stability.
In light of the above, how awful it is to not only be taxed based on inflation, but then to have more taxes imposed on you to pay for spending bills that we don't want and clearly don't benefit any of us. The wealth tax that is being tossed around would absolutely kill our economy and essentially out-right steal from all of us who have been saving for a lifetime. This is our reward for putting money into social security our whole lives only to find out that by the time I retire, it will be on the verge of insolvency. Pay in to get virtually nothing out. The problem with illegals coming in is making the problem that much worse.
From the Heritage Foundation article Nov 22, 2021 (peak inflation time period):
Many of the great disasters of our time have been committed by experts,” the economist Thomas Sowell once said. Looking at the way prices are rapidly rising across the U.S. economy, it’s hard not to think of his words.
President Joe Biden assured Americans in July that “no serious economist” expected unchecked inflation. Today, the public is more concerned with inflation than any other issue.
In February, the government’s inflation forecasts for the year were at or below 2 percent. As of October, year-over-year consumer price increases have reached a 31-year high of 6.2 percent—triple the official prediction. Producer prices are up 8.6 percent.
A series of deficit-financed spending packages adding up to $6 trillion (so far) have contributed to rising prices. Only recently, with prices across the economy climbing, has Biden acknowledged that the trend of higher inflation is hitting people’s pocketbooks.
