Tuesday, May 31, 2022

Milton Friedman On Inflation

Not only did he predict what we're going through now; in fact, he even correctly predicted the excuses the government "leaders" would use to explain and excuse it!

Inflation is blamed on many things. But it has only one cause: It is a monetary phenomenon. Inflation occurs when the quantity of money increases faster than the quantity of goods. Why does the money supply increase? Very often, it does so to enable the government to pay its bills without raising taxes. There's only one real cure for inflation. It is a cure that's easy to describe but difficult to apply: The government must reduce spending and print less money. The alternatives are both recession and double-digit inflation. Recorded at University of San Diego & San Diego Chamber of Commerce ©1978

This is the man about whom Joe Biden said, "Milton Friedman isn't running the show anymore."  Whom do you trust more?  Who has turned out to be right again and again, and who has turned out to be wrong?

1 comment:

Steve USMA '85 said...

Economic principles do not change just because someone else is in charge.