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.
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.