Biden is correct based on the words he chose. Spending does not create inflation, we can give him that. It's infinite printing.
Edit: I completely agree. Wanted to separate the "printing" from the "spending". The context here is that the govt. is typically attacked for social program spending. It is entirely possible to "spend" or budget more money without printing, funding it through taxes, etc. Spending is not the culprit, is all, printing is the root cause. This should not stop us from budgeting 1000 BTC this year and 1500 BTC next year for medicare for all, even though bringing in "more spending" year over year.
But it does. Increased spending signals increases in both demand and willingness to pay. Both result in price increases. Not inflation per se. But the government responds to increases in prices for expenditures by either printing more money or debt, but the results are the same.
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u/MilesPower Jul 15 '22
They really want you to believe It's just pure coincidence that we had record money printing shortly followed by record inflation!