Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: marcusmaximus
This idiots have no clue at all what they doing. Biden's Treasury Secretary is busy telling the Lying Media that the Biden Democrat's $1.75 trillion spending bill will be "anti inflationary"

Econ 101

What Is Demand-Pull Inflation?

Demand-pull inflation is the upward pressure on prices that follows a shortage in supply, a condition that economists describe as "too many dollars chasing too few goods."

KEY TAKEAWAYS

When demand surpasses supply, higher prices are the result. This is demand-pull inflation.

Increased government spending is good for the economy, too, but it can lead to scarcity in some goods and inflation will follow.

4 posted on 11/10/2021 9:12:08 AM PST by MNJohnnie (They would have abandon leftism to achieve sanity. Freeper Olog-hai)
[ Post Reply | Private Reply | To 1 | View Replies ]


To: MNJohnnie
Increased government spending is good for the economy, too,

That's right, because spending money WAY over the amount you actually have is a great way to run your finances. Politicians, like most Americans, are great at managing debt. They just suck at managing wealth, unless it's to line their own pockets, which is the problem.

25 posted on 11/10/2021 9:51:03 AM PST by Turbo Pig ('to close with and destroy the enemy")
[ Post Reply | Private Reply | To 4 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson