April 18, 2020

Economists (prevailing ones) don't know what inflation is, probably due to going to the same college as Trump. They assume inflation is an increase in the money supply.

Inflation is an increase in the cost of products. Economists know that but ignore it assuming that an increase in the amount of money in existence is the equivalent of price increase. They don't know what causes prices to increase, because they don't know how products are produced, not having worked eight-hour-per-day jobs.

Prices increase when the cost of producing increases. Any encumbrance to production causes the increase, which is often the opposite of money supply.

What is an encumbrance to production? Economists don't have a clue, so they look at money graphs to evaluate inflation while encumbering production through such insanity as putting people out of work to lower inflation, even though it always increases inflation.