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To: Pelham

I’m not conflating anything. The majority of price rises are due to DEMAND. Too many chasing a lessor supply, causing the prises to get bid higher. Wages are up due demand, too many employers chasing a limited number of emplyees. Energy is up due to less supply. Freight costs are up due to less supply. Consumer goods are up because producers have higher input, energy, and freight costs due to less supply of each.


17 posted on 01/23/2022 9:40:41 PM PST by BiglyCommentary
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To: BiglyCommentary

Yeah you are. You’re describing demand-pull price increases which aren’t caused by inflation.

https://www.investopedia.com/terms/m/milton-friedman.asp

“Inflation is always and everywhere a monetary phenomenon.”
The most famous excerpt from Friedman’s writings and speeches is, “Inflation is always and everywhere a monetary phenomenon.” He defied the intellectual climate of his era and reasserted the quantity theory of money as a viable economic tenet. In a 1956 paper titled “Studies in the Quantity Theory of Money,” Friedman found that, in the long run, increased monetary growth increases prices but does not really affect output.

Friedman’s work busted the classic Keynesian dichotomy on inflation, which asserted that prices rose from either “cost-push” or “demand-pull” sources. It also put monetary policy on the same level as fiscal policy.


20 posted on 01/25/2022 7:09:13 PM PST by Pelham (Q is short for quack )
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To: BiglyCommentary
The majority of price rises are due to DEMAND. Too many chasing a lessor supply, causing the prises to get bid higher. Wages are up due demand, too many employers chasing a limited number of emplyees. Energy is up due to less supply. Freight costs are up due to less supply.

If it wasn't a monetary issue, other prices would be falling to offset the increases you listed.

21 posted on 01/25/2022 7:13:25 PM PST by Toddsterpatriot (TANSTAAFL)
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