It’s the effect of government control over our money, where they print and print more without stopping spending. Government should exist to protect individual rights, not violate rights.
@@eikefreidank4567 the Fed is certainly part of the government. It’s not a reserve and it’s not a bank. The Fed can be abolished by the executive branch and Congress. A bank cannot be abolished without antitrust regulations.
@@eikefreidank4567 The Fed sets the interests rates for the foundation of the entire economy. They regulate.. Don’t ignore and evade the facts in my previous comment in order to confirm your own bias. A private bank does not have regulatory influence, which the Fed does.. and regulatory capture is not the same as writing regulations themselves. All of the commercial banks have to play within the regulated rules that come top-down. If you’re going to cast blame, it needs to be with respect to the law or causality. You can’t focus on the middle of the line of dominoes and expect to be correct. You must trace back to the first domino. The existence of National debt can still occur between two regulatory entities. The Fed buys our debt with fake fiat currency that it prints up to sustain itself. All that means is that government owns us more and more every day.
That's much older (translation from the original German to English after): "Was die Erfahrung aber und die Geschichte lehren, ist dieses, daß Völker und Regierungen niemals etwas aus der Geschichte gelernt und nach Lehren, die aus derselben zu ziehen gewesen wären, gehandelt haben." (However, what experience and history teach is this: that nations and governments never learned anything from history, or acted according to lessons that could be drawn from it.) Georg Wilhelm Friedrich Hegel: "Vorlesungen über die Philosophie der Weltgeschichte" (lectures on the philosophy of world history), Band 1 (volume 1): "Die Vernunft in der Geschichte" (reason in history), 1837
@@goldandsilverstack3 I guarantee you inflation is not as simple as "fiat currency bad". Like, even the Wiki page on inflation is has far more relevant information. Not only this video is short, it's information-poor.
Even though I plan to stick with it, inflation is wasting my money and my portfolio is losing gains every day, so I need a cure right away. My main concern is how to raise the value of my cash reserve because it has been lying there for a very long time with little to no increases and inflation is currently about 10%.
I know what I want to do now that the market is in decline, but I'm not sure which stocks to buy, which investments would generate the best returns, etc. Due to the risk, the possible benefit is larger, and experts are better at drafting such precise contracts.
In fact, despite having no experience or prior knowledge when I began investing in 2018, by the end of 2019 I had made a profit of over $750k. I had merely been adhering to the advice that my financial counselor had given me. This demonstrates that all you really need is an expert to assist you; you don't even need to be a great investor or put in a lot of work.
@michaelrenner3 I encountered Julie Anne Hoover through a CNBC interview, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested. You can hunt her up online if you require care supervision.
Forbes is totally right. The Gold Standard helped make America great. Let's bring it back! It's not too late. I've had this opinion for a long time already, I am glad PragerU released a video on it.
@@TheShiold123456 you can always bring it back. That's the whole point of the video: every time it was abandoned things went to shit, and the places that brought it back reaped the benefits. It doesn't mean there won't be a price to pay, and possibly a steep one, but as long as your society is still standing there's still time.
Every university in America should just replay this video over and over in Economics 101. Amazing stuff Prager. Free healthcare, free college tuition, free housing, free, free. The dollar just continues to devalue.
Good job, PragerU. Good job, Mr. Forbes. This video is very informative. This inflation problem is one of the many reasons why I resent Biden so much. Let's hope we can fix this inflation issue before it destroys our nation and economy.
My wife and I make more money per hour than my father ever did. The two of us live comfortably but have to watch our budget raising two kids, while my father supported my mother and raised five kids.
Outstanding, excellent presentation, must-watch! It's full of powerful information. One item new to me was the "great debasement" in the time of Henry VIII, corrected by his daughter Elizabeth I. No wonder she was popular. But why was I not taught about that at school? Hmm. Who controlled its curriculum...
Lol, no it's not. Pointing to major civilization collapses throughout history, ignoring the causes of those collapses, and then pointing out that inflation also occurred is a deceptive tactic. Such is also the case in the Queen Elizabeth story told here, where the narrator completely ignored her placing taxes on the church, giving aid to the poor, reforming the state religion, and other major acts to singularly focus on her recreation of the countries system of currency.
So nice of you to mention Argentina. Inflation is our default mode. You can always trust 1peso to lose its value as the months go by. I remember the good old days when I was a child (20 years algo) and I could buy a carton of milk for 20 cents ($00.20). Today it's like $90.00 I think. And milk is one of those products the government protects with policies that prevent prices from skyrocketing.
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Inflation is a kind of "wicked tax" created today to be paid by you in the future. Even if you increase your income to match inflation, your savings will lose purchasing power. Let's say you earn 100,000 a year, pay 10.00 on a BigMac and have 1,000,000 in your retirement savings. Let's say inflation reaches 100%. Now you pay 20.00 on a BigMac, but with luck, you get a pay raise, and you get 200,000 a year, and you think all is well. However, that 1,000,000 you saved for retirement lost 50% of its purchasing power. That is, you will have to add another 1,000,000 to be able to make your retirement.
But the opposite of inflation isn't necessarily better. What's the alternative after all we can control inflation through interest rates and borrowing.
@es e stock market and assets beats inflation. Don't lose hope also socialism can come which it is in some form. Through AI socialism. The neo liberal capatilist system will collapse.
“Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” (Milton Friedman) In this regard, "non-monetary inflation" is to be taken with a (large) grain of salt. Yes, certain developments in the economy, including natural disasters that, e.g., reduce access to some resource, can increase certain prices. However, with a fixed money supply this can only lead to a shift in prices (that is, some things become more expensive, other things become cheaper), for the very simple reason that a fixed money supply does not allow for paying prices that are higher all across the board. (Where would people get the money to pay those prices?) Only a *reduction* *of* *output* can lead to overall higher prices with a fixed money supply, so that generally less is being bought and sold with the same quantity of money, making each of those fewer items more expensive. Otherwise, a general increase in prices, especially over a longer period of time in which the quantity of output increases, is possible *only* with an increase of the money supply. And that is what the term "inflation" originally meant (until roughly the start of the 20th century): an increase of the money supply (the quantity of money). By today, the monetary cranks, with their gobbledygook of "stimulating the economy" instead of what they actually mean, namely "increasing the money supply" or simply "inflation", have achieved a shift in meaning, so that we use the term "inflation" for an increase in the (consumer good) price level. Thus the true cause of the higher prices, inflation in the sense of an increase of the money supply, is hidden.
Reductions of output happen all the time. Why do you think tech products spiked in price during COVID? It wasn't because the money supply magically increased, it was because everyone was buying computers while the production lines were shut down due to infections. Same for the current inflation, there wasn't a large increase in the money supply recently (as far as I know), it is caused by the fact that demand has gone up and production hasn't kept up due to the end of the COVID crisis. Monetarism is just one of the schools of thought to explain inflation, and not really the most accredited one. To be clear, garbage monetary policy can absolutely cause inflation, especially for long durations, but the inflation that is happening now is clearly caused by supply and demand factors (and is unlikely to be long-duration). The idea that the economy just magically never inflates unless monetary policy happens is clearly bunk and has no backing in economics.
@@Blaze6108 So this is not a large increase in the money supply? Look for "Fed St Louis M2" (for some reason TH-cam won't let me post the link directly)
@@christianborgelt8318 I've taken a look at both M2 and M1 and it looks like there's a data definition issue. M2 is based on M1, and if you look up their M1 it says at the bottom that exactly at the time of the spike (May 2020) the M1 was redefined to include all liquid deposits including savings accounts rather than only checked deposits. What's weird is that the M2 doesn't climb with the same spike as M1 (it's much smaller, actually). So it is also possible the M1 was adjusted in a way that simply matches it to the M2. But I still want to point out that in either case, the current inflation only happened 2 years later starting 2022, so either the causal relationship is ridiculously delayed or there's something else going on. You can actually see that the M2 in 2022 and in 2020 have the same slope after the bump, so that can't be it. For clarity, this isn't to say monetary policy doesn't cause inflation, it's just to say that the main cause for _this_ inflation likely isn't monetary policy, because monetary policy didn't suddenly change in 2022 (at most, as we've seen, it changed in 2020), but supply and demand did. Either way we have kinda disproven the point of the video regardless of who is right: having or not having the gold standard is clearly irrelevant, the only thing that matters is either dollar monetary policy or supply and demand.
@@Blaze6108 The US debt has tripled to $30 trillion from $10 trillion in 2008, while GDP has increased by 50%, obviously there has been an increase in the money stock. It may take years for increases to work their way through the economy before they are noticed in increased prices.
Great video!! I had the pleasure of meeting Steve Forbes when he was running for President in Bettendorf Iowa and had a wonderful conversation with him in the lobby of our hotel. He would have made a great President.
This video is extremely accurate on inflation for sure. But i am still curious about the gold standard. My grandfather believed that if it wasn't for taking our currency off the gold standard, other countries could buy our gold out right and we could lose it all overtime. I would like to hear others out on this subject, especially from someone who is very knowledgeable in economics. Thank you PragerU for all your content 🙏🇺🇸
Would have liked to see more details without assuming we know the in between steps. How exactly does the government printing money make things cost more? How is the gold standard stable if gold is a finite resource and its value has change over time? How does supply and demand factor into non-monetary inflation? These might seem simple but they are important nuances.
Short answer is it’s not stable. The price of gold and other precious metals fluctuate wildly based on market forces. The gold standard solves one problem but introduces many new ones. People like to talk about it because it will never happen
This will be very informative! I used to think inflation was just something that made money from the past more valuable, but r/NoStupidQuestions corrected me on that, lol. Still don't completely understand it though, but I'm sure your video will help explain. I'm always excited to see another PragerU video; keep it up!
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I lived in Brazil in the late 1980s and early 1990s, and we got there, on average, 100% inflation every MONTH. That was insane. Most people in North America don't realize how dangerous inflation is and how easy it is for the government to lose track of it.
Think of it in terms of supply and demand. If the mint floods the supply of money, the demand (value) goes down. When the government gave everyone $1600, everyone had $1600. Who is going to trade you for something they have?
The perpetual inflation that most governments have targeted since the Great Depression is beyond absurd! I have been saying this for years. Not only does it run the risk of causing what we are experiencing now, it just doesn't make sense. I mean, what is good about the fact that I may one day need to carry a wheelbarrow of money just to go grocery shopping? Perpetual inflation only benefits investors and encourages reckless financial decisions.
I wish that PragerU could also produce a video "What Is Deflation?" Since for some reason many economists seem to fear deflation more than steady inflation.
The banks thought they could issue loans without them having be covered by our savings in their banks. That worked for a long time, until bad mortgages brought that house of cards down and exposed how irresponsible they had been. Similarly governments thought they could print money and inflate the currency, as long as the economy grew us peons would never notice that our economic growth was being siphoned off by money printing. Until covid happened and the lockdowns caused the economy to shrink. And now, like the banks, we are shown how irresponsible our leaders have been.
Actually, banks being allowed to buy "securities" (stocks...) was also a big contributor to the bad mortgage crisis. They bundled those loans and sold them. I worked for a bank in the late 1990s. If I remember correctly, they had to keep investments and customer deposits separate. You also could not have multi-state banks.
Inflation is defined as the general rise in prices in an economy. It's not purely a monetary phenomena at all. Friedman was wrong on that point. If gas prices increase, that's going to have knock-on effects on everything else, because pretty much everything relies on fossil fuels in one way or another. There will be a general rise in prices throughout the entire economy. That's inflation
@@lisandroCTwhat? No they definitely are, or at least there’s a very close correlation between the two. If the cost for producing something doubles, you would have to double it’s price when you try selling it, in order to maintain the same profit margin.
@@0witw047 They're not. How do you think companies go bankrupt? Let's say I go to Antartida and set up my ice cubes factory, with the latest technology and try to sell ice cubes, how many ice cubes do you think I'll sell? No matter my cost of production, the price will be 0. Conversely, a piece of paper signed by some defunct star might be worth a couple hundreds even though the cost of production was the same as any other piece of paper. You should read and learn about the subjective theory of value.
@@0witw047 Why should you, as a company, be entitled to maintain the same profit margin? The margin on run-of-the-mill groceries is 10-25%, whereas the mark-up on designer handbags is of the order of 1700%. Prices aren't determined by costs, but by what the market will bear. If you make a profit, that tells you that you are doing the right thing and can pay your rent and your employees. If you make a loss, you can't pay the rent or your employees and you have to stop doing whatever it is.
If you really want to understand inflation you have to think in terms of time. In 1980 the median home price in the US was the equivalent of 1-3 years' salary. Today, it's 10 years.
Just came from the John Oliver video on what inflation is. This video actually makes a lot of sense, where as John's video simply described demand/supply. And he didn't talk about the worth of the dollar at all.
Inflation is the increase in monetary supply, which then devaluates “money”. Therefore, causing prices to increase. Inflation is not the increase in prices…
@@0witw047 no, that’s the dishonest definition used by the ones that cause inflation (government) to later blame it on profiteering, speculation, greed, etc (citizens).
@@marcello1099 so basically your only argument for inflation being your definition is that… the government is lying about it being the other definition? That’s not how that works. Let’s get down to the root of the issue here. Inflation described a loss in purchasing power. It is an objective fact that people can lose purchasing power for reasons other than the monetary supply increasing. Now, the monetary supply increasing can cause a loss in purchasing power, but it’s not the only thing. Allow me to ask you this question, what do you think can *increase* the purchasing power of someone’s money? Because how much people have been able to buy in real terms has increased, despite the monetary supply increasing, so what do you think is causing that? And if something other than monetary policy can increase purchasing power, what makes you think that same thing can’t decrease it?
@@0witw047 okay so for your definitions sake I will swap the word increment with inflation. To inflate purchasing power you need to inflate the supply of goods or decrease the monetary supply. Inflation in purchasing amounts by people (demand) has only increased, because of the new term "QE". This is only temporary because is an artificial intervention in markets. Hence, the reason why prices inflate and purchasing power deflates over the long run. *The US has been doing this for the last 12 years.* So, if I were to use inflation broadly I can attach it to any word of my pleasing. If I talk about economics, prices do not cause inflation, monetary supply does. Now my question, can you point to a time in history where there was a notable loss of purchasing power or price increments without an increase in monetary supply? Now, what is my opinion, the definitions this video uses, and apparently, you as well, are more aligned to Keynesian economics. By its track record, I would argue it's frankly consistently wrong in its approach to economics. Therefore, I approach its definitions with caution.
Increasing prices, universally, are a symptom of a debasement of the currency. With a constant money supply, we become richer by an increase in the supply or quality (or both) of goods, which is where capital investment comes in. Capitalists give up some of their own consumption in order to provide capital goods (machines, factories, schools, houses) which will increase the production of widgets, or decrease the cost of doing so, or both.
truly amazing summary of the history of inflation and the issue is not new to human kind. Though did not get into the nitty gritty of the WHY and WHAT CAN WE DO, other than gold.
I've loved Steve Forbes for decades; even before becoming a Republican in 2012. I can't agree with what he said about Nixon's move. I love the Forex markets and the supply and demand between other currencies is what values the almighty dollar against other countries currencies. It's actually a lot better.
Nice 2 c Steve Forbes here in PRAGER U. One aspect hits me most: Government is taking our financial power from within. Give Billions to Taliban etc...it is a kind of taxation.
Overall, I like the video. I don't think it's helpful however to refer to a price increase in a single good because of the supply shock as non-monetary inflation. Monetary inflation is the only kind of inflation.
In Germanys 1930 it was a DEFLATION which brought H to power. Because the money was linked to the gold reserves, it had to be reduced after the US claimed their gold reserves back after the Black Friday. This lead to a desasterous deflation. The great inflation was 10 years prior to that and lead to the gold binding.
The gold standard is unlikely to ever happen again. There is far too many dollars and too little available gold to honor any transactions, even with fractional reserve banking.
It’s not really that government (or even human beings in general) don’t learn from past mistakes, it’s that human being’s vices rule behavior and actions. Those vices… power and greed.
Government salaries are ADJUSTED for inflation and so government employees never suffer the effects of inflation as the non-government working class do. Oh, those beautiful government jobs; those beautiful, worry-free lives they lead (at taxpayer expense).
Depends on the kind of government job. Lower levels don't always get that luxury. I work at an animal shelter and after 3 years finally worked up to a decent pay, but now it just feels like I'm making the same as I did when I started. Even if they raise the starting pay, if you make more than what they raise it to, you don't get a raise and now you've worked your ass off just to make basically the same as someone just starting.
@@ScarlettNyxx yes, true-I think the more specific term that might apply is permanent US federal government jobs. If you have a job fitting that description, you’re basically set for life. I know-I do their finances as a private contractor
@@erikrichardgregory As someone who is good friends with many permanent federal government employees, and who has also taken a look at their finances as well, where are you getting the idea that federal employee's salaries are adjusted for inflation? They do get pretty regular raises, but that's just a part of the pay scale and seniority, not the government shielding them from inflation.
@@0witw047 where do I begin? When Obama was elected president he made a dramatic promise --we'll suffer alongside our fellow Americans...no federal pay raises for 2 years! It sounded wonderful. Except during those two years I noticed the federal employees were making more, much more, during those years. How? The president promised. So I did an audit. Unable to resolve the discrepancy I did a second audit. Then I saw it. Technically there had been no pay increase. But EACH AND EVERY MEMBER of the government was promoted, often promoted a full GS level, for BOTH of the promised pay freeze years. The "pay freeze" was a government lie, a smokescreen. A time of great hardship for the American people was actually a time of great peace and plenty for the public self servants I supported. The US government is a racket -- it's a very good excuse for taking money from the productive working class and giving it to those who are LUCKY ENOUGH to be a part of the government system
I love the irony of a Prager U video telling us to be mad at a Republican president. I love this entire video, to be honest. Great visuals and a very concise message.
3:32. "Their dollars were worth much more." THANK YOU! Someone's got to remind people the dollar doesn't go as far nowadays then it did when some of y'all where in your twenties. So the baby boomers can keep their mouths shut a little bit when it comes to people and us millennials affording things. It's not as simple as my generation being lazy, their are legit hurdles.
While there definitely are hurdles, it's also an objective fact that, at least for the typical American, wages adjusted by inflation (more specifically the CPI) have risen. Monetary inflation, while increasing the prices of goods, also increases wages along with it. The problem with currency devaluation lies more in foreign currency exchange rates making imports harder, and debt becoming devalued can cause economic problems
He is missing one point. Companies try to keep the same profits so any time their profits would decrease they increase the price. Kimberly Clark stated that in a recent earnings report.
As the cost of production increases, a company will naturally have to raise the cost of their product in order to keep a certain gross profit. The reason why the cost of production increases is because a weaker dollar buys less materials to make the product. Its a vicious cycle.
It’s critical to understand that there is a ratio between money supply and products available to purchase. If the equilibrium is disrupted, it can be very bad. Our government mismanaged the money supply and we must send clear message at the polls that we will not tolerate ever again.
I wouldn't really call it an "equilibrium", that implies a natural state. it could cost $1 to buy a hamburger or $1000, it doesn't matter. Inflation's impacts are transitory and in the long-run, cease to exist.
@@0witw047 Productivity may rise and fall with money supply but it moves slow because human capital and productivity increases take time. But government creating money doesn’t take much time.
Or a silver standard (one pound sterling is a (troy) pound of sterling (i.e. 92.5%) silver. Or both gold and silver, but without a fixed ratio (it used to be 15:1) between them.
That dollar I made on my paper route in the 1970s should always buy the same or more as it did when I made (as manufacturing processes improve somethings should cost less) Your labors should never lose value and your labors are in that money you earned.
It’s amazing how so many people don’t understand inflation. I have heard stupid explanations (always from Democrats and their constituents) like “Inflation is when businesses increase the cost of goods” to “Inflation is Trump’s fault”. I fully support going back to the gold standard as well, but I like to know how feasible that is now. How much gold does the US have and is it sufficient? What made Nixon take us off the Gold Standard (not justifying his action…just curious)? We had economic downturns when on the gold standard; how did that happen and what should we have learned from it? Objective historians and economists are the best people to answer such questions, and should be listened to.
It is trumps fault lol he let the jws print 4 trillion for covid relief Lmaoo come on bra don’t pick a side, realize this country is fully controlled by the tribe. Doesn’t matter repub or dem bud
if there is a shortage of supply, there is a shortage of supply (duh). no matter how much money you print or tax from the rich, there will a shortage of supply no matter what. the only way to fix the problem is to increase in production or decrease the demand
The Fed printed lots of money - but the middle and lower class did not get any of it. Inflation has started... but there is not any money to sustain it. People will just go without.
I'm wonder where the source of that Trust will land after the debate is held? If gold is not to be the "Standard", nor "Trust" then into what form will the new "Standard" be based upon?
The more recent cause of prices rising is not because of money printing but due to covid there were less people working and less transport of food. Furthermore many companies including those of the food sector have also gone out of business which has probably also played a negative role on prices going up to this day. Now, the war in Ukraine goes on top of all that, further raising prices.
Thanks Steve Forbes..paper has no weight or little weight at least gold has a heavy weight,,because if you have a lot of gold it can be used to buy a bag of food..according to weight.
There is only one type of inflation which is monetary. Inflation is the expansion of the money supply that results in rising prices. Inflation is the result of government fiscal and monetary policy. As deficits and debts increase, the government must borrow more money from the central bank. This is done by issuing government bonds which the central bank buys along with commercial banks. The Treasury must issue more currency for the central bank to buy the government bonds. Price rises due to shortages is not inflation, it is just a price increase to reflect the demand for scarce goods. If supply increases and demand drops, prices go down for goods and this is not deflation but a price adjustment. Deflation can only occur when money is taken out of the economy resulting in a lowering of demand due to scarcity of money, which results in price declines. Both inflation and deflation are the result of government fiscal and monetary policy only.
I may be wrong but isn't it bad to link back to gold again, isn't that what Putin was doing at the start of sanctions? As far as i know link back to gold generate a lot of other problems.
"Henry the 8th did essentially the same thing with England's coinage to pay for his wars, DIVORCES and debaucheries." Yeah I felt that. UGH. I am stuck.
I think the problem was maintaining that 1 dollar represented a certain amount of gold, whereas they should simply have used a certain amount of gold (an ounce, a gram, whatever) and not worried about what it represented. The same could have been said for silver, and again, the ratio in dollars between gold and silver should not have been maintained.
ok, better than print money out of no where, they should allow an open market standard, currency anything, copper, iron, nickel, anything, and let me freely compete in the marketplace
@@orangefield2308 It's not anymore and they can't revert in anyways. Without printing money it also collapses. Starting to see how the system is the problem? Competing in a capitalist commodity exchange market has it's own unfixable flaws and contradictions.
It’s the effect of government control over our money, where they print and print more without stopping spending. Government should exist to protect individual rights, not violate rights.
@@eikefreidank4567 the Fed is certainly part of the government. It’s not a reserve and it’s not a bank. The Fed can be abolished by the executive branch and Congress. A bank cannot be abolished without antitrust regulations.
@@eikefreidank4567 The Fed sets the interests rates for the foundation of the entire economy. They regulate..
Don’t ignore and evade the facts in my previous comment in order to confirm your own bias. A private bank does not have regulatory influence, which the Fed does.. and regulatory capture is not the same as writing regulations themselves.
All of the commercial banks have to play within the regulated rules that come top-down. If you’re going to cast blame, it needs to be with respect to the law or causality. You can’t focus on the middle of the line of dominoes and expect to be correct. You must trace back to the first domino.
The existence of National debt can still occur between two regulatory entities. The Fed buys our debt with fake fiat currency that it prints up to sustain itself. All that means is that government owns us more and more every day.
@@eikefreidank4567 who is the Fed Chair appointed by?
Inflation would exist with or without the government. Remember bitcoin dropping in value? Yeah that’s inflation, and no government caused that.
@@0witw047 lol
"The only thing we learn from history; is that we do not learn from history."
- Pat Buchanan
That's much older (translation from the original German to English after): "Was die Erfahrung aber und die Geschichte lehren, ist dieses, daß Völker und Regierungen niemals etwas aus der Geschichte gelernt und nach Lehren, die aus derselben zu ziehen gewesen wären, gehandelt haben." (However, what experience and history teach is this: that nations and governments never learned anything from history, or acted according to lessons that could be drawn from it.) Georg Wilhelm Friedrich Hegel: "Vorlesungen über die Philosophie der Weltgeschichte" (lectures on the philosophy of world history), Band 1 (volume 1): "Die Vernunft in der Geschichte" (reason in history), 1837
"Government, is the problem." - Ronald Reagan
Not prolific
@@halbleavy9900 odd usage of that word.
@@jalsr.speak2379 In many cases people quote prolific writers, I don't agree in Pat's case.
This is why I love Prager U--not only can they tell me what a woman is, they can also tell me what inflation is.
Good one!
You should probably not learn what inflation is from a 5 minute TH-cam video.
@@Blaze6108 but he did and way better then any k through 12 system or college will ever teach. So.......
@@goldandsilverstack3 I guarantee you inflation is not as simple as "fiat currency bad". Like, even the Wiki page on inflation is has far more relevant information. Not only this video is short, it's information-poor.
@@Blaze6108 like everything PragerU produces.
"Inflation is a tax on everybody."
-Senator Ron Johnson (R-WI)
'Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man'. -Ronald Reagan
@@bludeuce3855 Yep. Even Ronald Reagan said it best.
Incredible that they got Steve Forbes to do this. Good for him!
hes promoting his book
Even though I plan to stick with it, inflation is wasting my money and my portfolio is losing gains every day, so I need a cure right away. My main concern is how to raise the value of my cash reserve because it has been lying there for a very long time with little to no increases and inflation is currently about 10%.
I know what I want to do now that the market is in decline, but I'm not sure which stocks to buy, which investments would generate the best returns, etc. Due to the risk, the possible benefit is larger, and experts are better at drafting such precise contracts.
In fact, despite having no experience or prior knowledge when I began investing in 2018, by the end of 2019 I had made a profit of over $750k. I had merely been adhering to the advice that my financial counselor had given me. This demonstrates that all you really need is an expert to assist you; you don't even need to be a great investor or put in a lot of work.
@michaelrenner3 I encountered Julie Anne Hoover through a CNBC interview, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested. You can hunt her up online if you require care supervision.
@@danieljackson87 Insightful... I was curious after reading what you shared, so I Googled her name. I came across her webpage.
Very insightful post
“Paper money always eventually returns to its intrinsic value - zero.” -Voltaire
The economy's importance in the country's health cannot be overstated. Inflation is a nation-killer.
Most times yes but not all the time. Hyperinflation is always bad.
Forbes is totally right. The Gold Standard helped make America great. Let's bring it back! It's not too late. I've had this opinion for a long time already, I am glad PragerU released a video on it.
You cant bring that back because you have 30 tri usd debt and there isnt this kind of money in the planet to pay it.
@@TheShiold123456 you can always bring it back. That's the whole point of the video: every time it was abandoned things went to shit, and the places that brought it back reaped the benefits. It doesn't mean there won't be a price to pay, and possibly a steep one, but as long as your society is still standing there's still time.
@@KosstAmojan How can you bring a gold standart back if total gold supply is worth 10tri usd and us debt is 30tri? .....how?
Kennedy tried that once. Look what they did to him.
Thank you PragerU for being normal.
Every university in America should just replay this video over and over in Economics 101. Amazing stuff Prager. Free healthcare, free college tuition, free housing, free, free. The dollar just continues to devalue.
yeah wheres the value in healthcare or education if everyone has access to it.
All those things don't exist.
Maybe the government should stop giving money to insurance companies and rich guys like Bloomberg? That would help.
@@albertmooney2628 the value is that people have access to it, what’s the value of free speech if everyone has access to it
I thought we wanted ideology out of universities. I guess not everyone wants it
Good job, PragerU. Good job, Mr. Forbes. This video is very informative. This inflation problem is one of the many reasons why I resent Biden so much. Let's hope we can fix this inflation issue before it destroys our nation and economy.
My wife and I make more money per hour than my father ever did. The two of us live comfortably but have to watch our budget raising two kids, while my father supported my mother and raised five kids.
Outstanding, excellent presentation, must-watch!
It's full of powerful information. One item new to me was the "great debasement" in the time of Henry VIII, corrected by his daughter Elizabeth I. No wonder she was popular. But why was I not taught about that at school? Hmm. Who controlled its curriculum...
How do u know hasn't started yet
It's wrong. The US government doesn't "print" money, and neither do any other major world governments ever since the Weimar republic.
@@Blaze6108 the mint is part of government the government tells them how much to print like Biden did.
@@jeffdo9195 We're not talking about literal printing with printers here...
Lol, no it's not. Pointing to major civilization collapses throughout history, ignoring the causes of those collapses, and then pointing out that inflation also occurred is a deceptive tactic. Such is also the case in the Queen Elizabeth story told here, where the narrator completely ignored her placing taxes on the church, giving aid to the poor, reforming the state religion, and other major acts to singularly focus on her recreation of the countries system of currency.
So nice of you to mention Argentina. Inflation is our default mode. You can always trust 1peso to lose its value as the months go by. I remember the good old days when I was a child (20 years algo) and I could buy a carton of milk for 20 cents ($00.20). Today it's like $90.00 I think. And milk is one of those products the government protects with policies that prevent prices from skyrocketing.
Inflation is a kind of "wicked tax" created today to be paid by you in the future. Even if you increase your income to match inflation, your savings will lose purchasing power.
Let's say you earn 100,000 a year, pay 10.00 on a BigMac and have 1,000,000 in your retirement savings. Let's say inflation reaches 100%. Now you pay 20.00 on a BigMac, but with luck, you get a pay raise, and you get 200,000 a year, and you think all is well.
However, that 1,000,000 you saved for retirement lost 50% of its purchasing power. That is, you will have to add another 1,000,000 to be able to make your retirement.
It got so bad that Rome was rejecting its own coins that's how bad inflation was getting in the Roman Empire
...which is why retirement accounts don't save your money in cash, but in assets. They're not stupid.
But the opposite of inflation isn't necessarily better. What's the alternative after all we can control inflation through interest rates and borrowing.
@es e stock market and assets beats inflation. Don't lose hope also socialism can come which it is in some form. Through AI socialism. The neo liberal capatilist system will collapse.
Tremendous mental clarity.
“Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” (Milton Friedman)
In this regard, "non-monetary inflation" is to be taken with a (large) grain of salt. Yes, certain developments in the economy, including natural disasters that, e.g., reduce access to some resource, can increase certain prices. However, with a fixed money supply this can only lead to a shift in prices (that is, some things become more expensive, other things become cheaper), for the very simple reason that a fixed money supply does not allow for paying prices that are higher all across the board. (Where would people get the money to pay those prices?) Only a *reduction* *of* *output* can lead to overall higher prices with a fixed money supply, so that generally less is being bought and sold with the same quantity of money, making each of those fewer items more expensive. Otherwise, a general increase in prices, especially over a longer period of time in which the quantity of output increases, is possible *only* with an increase of the money supply. And that is what the term "inflation" originally meant (until roughly the start of the 20th century): an increase of the money supply (the quantity of money). By today, the monetary cranks, with their gobbledygook of "stimulating the economy" instead of what they actually mean, namely "increasing the money supply" or simply "inflation", have achieved a shift in meaning, so that we use the term "inflation" for an increase in the (consumer good) price level. Thus the true cause of the higher prices, inflation in the sense of an increase of the money supply, is hidden.
Reductions of output happen all the time. Why do you think tech products spiked in price during COVID? It wasn't because the money supply magically increased, it was because everyone was buying computers while the production lines were shut down due to infections. Same for the current inflation, there wasn't a large increase in the money supply recently (as far as I know), it is caused by the fact that demand has gone up and production hasn't kept up due to the end of the COVID crisis.
Monetarism is just one of the schools of thought to explain inflation, and not really the most accredited one.
To be clear, garbage monetary policy can absolutely cause inflation, especially for long durations, but the inflation that is happening now is clearly caused by supply and demand factors (and is unlikely to be long-duration). The idea that the economy just magically never inflates unless monetary policy happens is clearly bunk and has no backing in economics.
@@Blaze6108 So this is not a large increase in the money supply? Look for "Fed St Louis M2" (for some reason TH-cam won't let me post the link directly)
@@christianborgelt8318 I've taken a look at both M2 and M1 and it looks like there's a data definition issue. M2 is based on M1, and if you look up their M1 it says at the bottom that exactly at the time of the spike (May 2020) the M1 was redefined to include all liquid deposits including savings accounts rather than only checked deposits.
What's weird is that the M2 doesn't climb with the same spike as M1 (it's much smaller, actually). So it is also possible the M1 was adjusted in a way that simply matches it to the M2.
But I still want to point out that in either case, the current inflation only happened 2 years later starting 2022, so either the causal relationship is ridiculously delayed or there's something else going on. You can actually see that the M2 in 2022 and in 2020 have the same slope after the bump, so that can't be it.
For clarity, this isn't to say monetary policy doesn't cause inflation, it's just to say that the main cause for _this_ inflation likely isn't monetary policy, because monetary policy didn't suddenly change in 2022 (at most, as we've seen, it changed in 2020), but supply and demand did.
Either way we have kinda disproven the point of the video regardless of who is right: having or not having the gold standard is clearly irrelevant, the only thing that matters is either dollar monetary policy or supply and demand.
@@Blaze6108 The US debt has tripled to $30 trillion from $10 trillion in 2008, while GDP has increased by 50%, obviously there has been an increase in the money stock. It may take years for increases to work their way through the economy before they are noticed in increased prices.
Great video!! I had the pleasure of meeting Steve Forbes when he was running for President in Bettendorf Iowa and had a wonderful conversation with him in the lobby of our hotel. He would have made a great President.
This video is extremely accurate on inflation for sure. But i am still curious about the gold standard. My grandfather believed that if it wasn't for taking our currency off the gold standard, other countries could buy our gold out right and we could lose it all overtime. I would like to hear others out on this subject, especially from someone who is very knowledgeable in economics. Thank you PragerU for all your content 🙏🇺🇸
Most of the gold only existed on paper by the time Nixon was president
Would have liked to see more details without assuming we know the in between steps. How exactly does the government printing money make things cost more? How is the gold standard stable if gold is a finite resource and its value has change over time? How does supply and demand factor into non-monetary inflation? These might seem simple but they are important nuances.
Short answer is it’s not stable. The price of gold and other precious metals fluctuate wildly based on market forces. The gold standard solves one problem but introduces many new ones. People like to talk about it because it will never happen
th-cam.com/video/PTUY16CkS-k/w-d-xo.html
I( agree with everything Mr Forbes said. Im sharing !!
Nice. Now do one on how inflation is calculated and what is left out of that calculation.
"The cure for inflation is to stop inflating."
Returning to the Gold Standard is a bad idea
One of the most important videos that ALL Americans need to watch!
This will be very informative! I used to think inflation was just something that made money from the past more valuable, but r/NoStupidQuestions corrected me on that, lol. Still don't completely understand it though, but I'm sure your video will help explain.
I'm always excited to see another PragerU video; keep it up!
I lived in Brazil in the late 1980s and early 1990s, and we got there, on average, 100% inflation every MONTH. That was insane. Most people in North America don't realize how dangerous inflation is and how easy it is for the government to lose track of it.
Think of it in terms of supply and demand. If the mint floods the supply of money, the demand (value) goes down.
When the government gave everyone $1600, everyone had $1600. Who is going to trade you for something they have?
You know, you can actually Google it instead of being spoonfed propaganda from actual billionaires.
@@TigerNightmare wow and you mean the left wing biased/pandering search engine backed by billion dollar company?
@@benedictjajo Use any search engine, it doesn't matter. Your paranoia does not make you right.
The perpetual inflation that most governments have targeted since the Great Depression is beyond absurd! I have been saying this for years. Not only does it run the risk of causing what we are experiencing now, it just doesn't make sense. I mean, what is good about the fact that I may one day need to carry a wheelbarrow of money just to go grocery shopping? Perpetual inflation only benefits investors and encourages reckless financial decisions.
Why inflation benefit investors?
This was great - the animations were very helpful too!
I wish that PragerU could also produce a video "What Is Deflation?" Since for some reason many economists seem to fear deflation more than steady inflation.
That is what I was thinking 🤔 also
Ouch! The truth hurts! Thank You for explaining it for people who do not know.
The banks thought they could issue loans without them having be covered by our savings in their banks. That worked for a long time, until bad mortgages brought that house of cards down and exposed how irresponsible they had been. Similarly governments thought they could print money and inflate the currency, as long as the economy grew us peons would never notice that our economic growth was being siphoned off by money printing. Until covid happened and the lockdowns caused the economy to shrink. And now, like the banks, we are shown how irresponsible our leaders have been.
I believe they were also pressured by poor govt policy to grant loans to persons who didn't actually qualify.
Actually, banks being allowed to buy "securities" (stocks...) was also a big contributor to the bad mortgage crisis. They bundled those loans and sold them.
I worked for a bank in the late 1990s. If I remember correctly, they had to keep investments and customer deposits separate. You also could not have multi-state banks.
"Inflation is always and everywhere a monetary phenomenon". M. Friedman
If the price of gas increases due to a natural event, it's not inflation.
Inflation is defined as the general rise in prices in an economy. It's not purely a monetary phenomena at all. Friedman was wrong on that point.
If gas prices increase, that's going to have knock-on effects on everything else, because pretty much everything relies on fossil fuels in one way or another. There will be a general rise in prices throughout the entire economy. That's inflation
@@0witw047 Prices aren't determined by the costs.
@@lisandroCTwhat? No they definitely are, or at least there’s a very close correlation between the two. If the cost for producing something doubles, you would have to double it’s price when you try selling it, in order to maintain the same profit margin.
@@0witw047 They're not. How do you think companies go bankrupt? Let's say I go to Antartida and set up my ice cubes factory, with the latest technology and try to sell ice cubes, how many ice cubes do you think I'll sell? No matter my cost of production, the price will be 0. Conversely, a piece of paper signed by some defunct star might be worth a couple hundreds even though the cost of production was the same as any other piece of paper. You should read and learn about the subjective theory of value.
@@0witw047 Why should you, as a company, be entitled to maintain the same profit margin? The margin on run-of-the-mill groceries is 10-25%, whereas the mark-up on designer handbags is of the order of 1700%. Prices aren't determined by costs, but by what the market will bear. If you make a profit, that tells you that you are doing the right thing and can pay your rent and your employees. If you make a loss, you can't pay the rent or your employees and you have to stop doing whatever it is.
Well explained.
Canada needs to get rid of Trudeau....ASAP.
If you really want to understand inflation you have to think in terms of time. In 1980 the median home price in the US was the equivalent of 1-3 years' salary. Today, it's 10 years.
We don't need a debate it. We don't want any excuses, we just want it fixed and never screw it up again to many people are suffering from it.
Raise of prices doesn't equal inflation. it's just "inflating" the money supply.
rising prices is the result, not the cause, of inflation
Yes, these things are thrown together: Rising prices caused by a shortage are called „inflation“, actually that’s wrong.
Excellent vid! Seems so common sense, but I guess that’s actually not so common anymore…
That's the problem with common sense: it ain't that common.
Always a Joy to listen to you with such Succinct Appraisals of "convoluted" Subjects!!!
Just came from the John Oliver video on what inflation is. This video actually makes a lot of sense, where as John's video simply described demand/supply. And he didn't talk about the worth of the dollar at all.
The worth of the dollar affects the supply/demand as well
Literally EVERYONE needs to see this!
Its wrong though
I’ve been asking for this information for years and years THANKS4GIVING
Inflation is the increase in monetary supply, which then devaluates “money”. Therefore, causing prices to increase.
Inflation is not the increase in prices…
No it's defined as the increase in prices. The monetary supply can increase without prices increasing
@@0witw047 no, that’s the dishonest definition used by the ones that cause inflation (government) to later blame it on profiteering, speculation, greed, etc (citizens).
@@marcello1099 so basically your only argument for inflation being your definition is that… the government is lying about it being the other definition? That’s not how that works.
Let’s get down to the root of the issue here. Inflation described a loss in purchasing power. It is an objective fact that people can lose purchasing power for reasons other than the monetary supply increasing. Now, the monetary supply increasing can cause a loss in purchasing power, but it’s not the only thing.
Allow me to ask you this question, what do you think can *increase* the purchasing power of someone’s money? Because how much people have been able to buy in real terms has increased, despite the monetary supply increasing, so what do you think is causing that?
And if something other than monetary policy can increase purchasing power, what makes you think that same thing can’t decrease it?
@@0witw047 okay so for your definitions sake I will swap the word increment with inflation.
To inflate purchasing power you need to inflate the supply of goods or decrease the monetary supply.
Inflation in purchasing amounts by people (demand) has only increased, because of the new term "QE". This is only temporary because is an artificial intervention in markets. Hence, the reason why prices inflate and purchasing power deflates over the long run. *The US has been doing this for the last 12 years.*
So, if I were to use inflation broadly I can attach it to any word of my pleasing. If I talk about economics, prices do not cause inflation, monetary supply does. Now my question, can you point to a time in history where there was a notable loss of purchasing power or price increments without an increase in monetary supply?
Now, what is my opinion, the definitions this video uses, and apparently, you as well, are more aligned to Keynesian economics. By its track record, I would argue it's frankly consistently wrong in its approach to economics. Therefore, I approach its definitions with caution.
Increasing prices, universally, are a symptom of a debasement of the currency. With a constant money supply, we become richer by an increase in the supply or quality (or both) of goods, which is where capital investment comes in. Capitalists give up some of their own consumption in order to provide capital goods (machines, factories, schools, houses) which will increase the production of widgets, or decrease the cost of doing so, or both.
A good reason to have money at hand, but also assets that either dont lose value or help earn more.
Thank you. This was really helpful.
truly amazing summary of the history of inflation and the issue is not new to human kind.
Though did not get into the nitty gritty of the WHY and WHAT CAN WE DO, other than gold.
I've loved Steve Forbes for decades; even before becoming a Republican in 2012. I can't agree with what he said about Nixon's move. I love the Forex markets and the supply and demand between other currencies is what values the almighty dollar against other countries currencies. It's actually a lot better.
The three most important things schools need to teach: history, economics, and its country’s founding documents.
He explained it much better than any CFA or big shot CFO or Finance Minister
Steve Forbes knows his stuff mane.
Nice 2 c Steve Forbes here in PRAGER U.
One aspect hits me most: Government is
taking our financial power from within.
Give Billions to Taliban etc...it is a kind of taxation.
Not kind of, it is.
Let’s go Brandon!!
Overall, I like the video. I don't think it's helpful however to refer to a price increase in a single good because of the supply shock as non-monetary inflation.
Monetary inflation is the only kind of inflation.
You have a great point.
How could a can of Coke even been 10 cents? That's insane!
Because 10 cents was worth much more 40 years ago than it is today.
In Germanys 1930 it was a DEFLATION which brought H to power.
Because the money was linked to the gold reserves, it had to be reduced after the US claimed their gold reserves back after the Black Friday. This lead to a desasterous deflation.
The great inflation was 10 years prior to that and lead to the gold binding.
The gold standard is unlikely to ever happen again. There is far too many dollars and too little available gold to honor any transactions, even with fractional reserve banking.
Inflation is devalued currency due to oversupply of currency.
The bane of fiat money.
What blows my mind is that the governments/human kind seems to not be able to learn from past mistakes.
But they do learn. Government is always in debt and inflation is good for the government as its debt is inflated away to nothing.
It’s not really that government (or even human beings in general) don’t learn from past mistakes, it’s that human being’s vices rule behavior and actions. Those vices… power and greed.
What is inflation
Thank you so much!
Great great segment.
Government salaries are ADJUSTED for inflation and so government employees never suffer the effects of inflation as the non-government working class do. Oh, those beautiful government jobs; those beautiful, worry-free lives they lead (at taxpayer expense).
Depends on the kind of government job. Lower levels don't always get that luxury. I work at an animal shelter and after 3 years finally worked up to a decent pay, but now it just feels like I'm making the same as I did when I started. Even if they raise the starting pay, if you make more than what they raise it to, you don't get a raise and now you've worked your ass off just to make basically the same as someone just starting.
@@ScarlettNyxx yes, true-I think the more specific term that might apply is permanent US federal government jobs. If you have a job fitting that description, you’re basically set for life. I know-I do their finances as a private contractor
@@erikrichardgregory As someone who is good friends with many permanent federal government employees, and who has also taken a look at their finances as well, where are you getting the idea that federal employee's salaries are adjusted for inflation? They do get pretty regular raises, but that's just a part of the pay scale and seniority, not the government shielding them from inflation.
@@0witw047 where do I begin? When Obama was elected president he made a dramatic promise --we'll suffer alongside our fellow Americans...no federal pay raises for 2 years! It sounded wonderful. Except during those two years I noticed the federal employees were making more, much more, during those years. How? The president promised. So I did an audit. Unable to resolve the discrepancy I did a second audit. Then I saw it. Technically there had been no pay increase. But EACH AND EVERY MEMBER of the government was promoted, often promoted a full GS level, for BOTH of the promised pay freeze years. The "pay freeze" was a government lie, a smokescreen. A time of great hardship for the American people was actually a time of great peace and plenty for the public self servants I supported. The US government is a racket -- it's a very good excuse for taking money from the productive working class and giving it to those who are LUCKY ENOUGH to be a part of the government system
USA: what is inflación?
Hispanoamérica: La niña va a llorar.
ahhhhhhh pragerU, always good for a quick laugh
Inflation is no laughing matter, though. Be thankful you don't live in Zimbabwe. Could you find a trillion dollars for a chicken?
I'll admit, I did not expect them to point the finger at Nixon.
I love the irony of a Prager U video telling us to be mad at a Republican president. I love this entire video, to be honest. Great visuals and a very concise message.
The gold standard is impractical. There isn't enough gold to base the currency on. It would merely inflate the value of gold
Thanks for the video.
Excellent
3:32. "Their dollars were worth much more." THANK YOU! Someone's got to remind people the dollar doesn't go as far nowadays then it did when some of y'all where in your twenties. So the baby boomers can keep their mouths shut a little bit when it comes to people and us millennials affording things. It's not as simple as my generation being lazy, their are legit hurdles.
While there definitely are hurdles, it's also an objective fact that, at least for the typical American, wages adjusted by inflation (more specifically the CPI) have risen. Monetary inflation, while increasing the prices of goods, also increases wages along with it. The problem with currency devaluation lies more in foreign currency exchange rates making imports harder, and debt becoming devalued can cause economic problems
He is missing one point. Companies try to keep the same profits so any time their profits would decrease they increase the price. Kimberly Clark stated that in a recent earnings report.
As the cost of production increases, a company will naturally have to raise the cost of their product in order to keep a certain gross profit. The reason why the cost of production increases is because a weaker dollar buys less materials to make the product. Its a vicious cycle.
Ah money printing causes inflation. My favorite fairy tale
Love PRAGER-U👍🔥
They don't have Faith in GOD but they have Faith in the Dollar? Nuts
Not a word about record corporate profits and stock buy backs, huh Steve ?
Or the rich buying up houses, decreasing supply and increasing demand.
Inflation = greed of the bureaucratic officials
Who estimated that the US economy would be 50% larger with the gold standard?
It’s critical to understand that there is a ratio between money supply and products available to purchase. If the equilibrium is disrupted, it can be very bad. Our government mismanaged the money supply and we must send clear message at the polls that we will not tolerate ever again.
I wouldn't really call it an "equilibrium", that implies a natural state. it could cost $1 to buy a hamburger or $1000, it doesn't matter. Inflation's impacts are transitory and in the long-run, cease to exist.
@@0witw047 Productivity may rise and fall with money supply but it moves slow because human capital and productivity increases take time. But government creating money doesn’t take much time.
Guys, look up “Pokémon inflation” to find out why Pokémon cards are subject to inflation
We absolutely NEED to go back to the gold standard!!
Or a silver standard (one pound sterling is a (troy) pound of sterling (i.e. 92.5%) silver. Or both gold and silver, but without a fixed ratio (it used to be 15:1) between them.
@@nicks40 and get rid of the central banks
@@mfsalatino ... in the sense of a State-owned monstrosity - absolutely! All banks should be able to issue their own currency, or not, as they wish.
That dollar I made on my paper route in the 1970s should always buy the same or more as it did when I made (as manufacturing processes improve somethings should cost less) Your labors should never lose value and your labors are in that money you earned.
When Volker cut off the gold standard to prevent a dollar collapse he wanted a second Brettenwoods, Nixon denied him..
TY
Fantastic content as always
It’s amazing how so many people don’t understand inflation. I have heard stupid explanations (always from Democrats and their constituents) like “Inflation is when businesses increase the cost of goods” to “Inflation is Trump’s fault”. I fully support going back to the gold standard as well, but I like to know how feasible that is now. How much gold does the US have and is it sufficient? What made Nixon take us off the Gold Standard (not justifying his action…just curious)? We had economic downturns when on the gold standard; how did that happen and what should we have learned from it? Objective historians and economists are the best people to answer such questions, and should be listened to.
It is trumps fault lol he let the jws print 4 trillion for covid relief Lmaoo come on bra don’t pick a side, realize this country is fully controlled by the tribe. Doesn’t matter repub or dem bud
if there is a shortage of supply, there is a shortage of supply (duh). no matter how much money you print or tax from the rich, there will a shortage of supply no matter what. the only way to fix the problem is to increase in production or decrease the demand
The Fed printed lots of money - but the middle and lower class did not get any of it. Inflation has started... but there is not any money to sustain it. People will just go without.
Can they connect the dollar to gold again?
I'm wonder where the source of that Trust will land after the debate is held?
If gold is not to be the "Standard", nor "Trust" then into what form will the new "Standard" be based upon?
Imagination?
The more recent cause of prices rising is not because of money printing but due to covid there were less people working and less transport of food. Furthermore many companies including those of the food sector have also gone out of business which has probably also played a negative role on prices going up to this day. Now, the war in Ukraine goes on top of all that, further raising prices.
Is the Pound Sterling linked to a standard or also can be printed by their Central Bank through the government ?
Crazy that the inflation we're presently experiencing is entirely artificial, caused by monopolies increasing prices
Thanks Steve Forbes..paper has no weight or little weight at least gold has a heavy weight,,because if you have a lot of gold it can be used to buy a bag of food..according to weight.
There is only one type of inflation which is monetary. Inflation is the expansion of the money supply that results in rising prices. Inflation is the result of government fiscal and monetary policy. As deficits and debts increase, the government must borrow more money from the central bank. This is done by issuing government bonds which the central bank buys along with commercial banks. The Treasury must issue more currency for the central bank to buy the government bonds.
Price rises due to shortages is not inflation, it is just a price increase to reflect the demand for scarce goods. If supply increases and demand drops, prices go down for goods and this is not deflation but a price adjustment.
Deflation can only occur when money is taken out of the economy resulting in a lowering of demand due to scarcity of money, which results in price declines. Both inflation and deflation are the result of government fiscal and monetary policy only.
Still makes absolutely zero sense.
I applaud Elizabeth I
She was a star.
I may be wrong but isn't it bad to link back to gold again, isn't that what Putin was doing at the start of sanctions? As far as i know link back to gold generate a lot of other problems.
"Henry the 8th did essentially the same thing with England's coinage to pay for his wars, DIVORCES and debaucheries." Yeah I felt that. UGH. I am stuck.
The gold standard was too inflexible and made reacting to a recession harder.
You keep blaming the policy but the system is the issue
I think the problem was maintaining that 1 dollar represented a certain amount of gold, whereas they should simply have used a certain amount of gold (an ounce, a gram, whatever) and not worried about what it represented. The same could have been said for silver, and again, the ratio in dollars between gold and silver should not have been maintained.
ok, better than print money out of no where, they should allow an open market standard, currency anything, copper, iron, nickel, anything, and let me freely compete in the marketplace
@@orangefield2308 It's not anymore and they can't revert in anyways. Without printing money it also collapses. Starting to see how the system is the problem?
Competing in a capitalist commodity exchange market has it's own unfixable flaws and contradictions.
@@nicolasabbe4668 again, better than printing money out of thin air, no option is best, people deserve choice, better than relying fiat fake money
@@orangefield2308 No it's not better. That's what I'm trying to tell you.