Inflation has destroyed economies around the world and some economists fear that the United States is experiencing now, or is about to experience some extended inflation. Professor Matt Will, an economist with the University of Indianapolis, blames federal spending for at least part of the problem.
“For about the past ten years inflations only been around two percent. Yet, this may it was five percent. This is a serious problem,” said Will.
Will said he believes the announcement by “the Fed”, the Federal Open Markets Committee, that it may raise interest rates in 2023, may be an attempt to curb inflation, but he believes they could be doing more.
“There’s a theory called ‘political monetary policy’, and I think what you’re seeing here is exactly that. I think the Fed is afraid to say to the federal government, you’re spending too much money,” said Will. He said that when Pres. Biden spends trillions of dollars that causes inflation.
“Inflation is a very simple calculation. It’s too much cash and not enough stuff to buy,” he said. “There’s only two people in this country that can do that: The Federal Reserve Board and the federal government.”
Will said the rising gas prices, shortages of products like lumber and even the microchips used to make cars, are examples of the principle of inflation. He said he doesn’t believe the Fed is taking the situation seriously enough.
“The Fed has said, there’s nothing to see here. They’re calling this transitory. That means they think it’s temporary.”