Biden’s Infrastructure Plan Points to Even More Price Inflation
What is the worst thing a government can do when there is high inflation and supply shortages? Multiply spending on energy and material-intensive areas. This is exactly what the US infrastructure plan is doing and—even worse—what other developed nations have decided to copy.
If you thought there were problems of supply and difficulties to access goods and services in the middle of a strong recovery, imagine what will happen once central banks and governments turn the printing machine to maximum level to spend on white elephants.
There is no such thing as “multicause inflation.” What Biden calls “speculation” is simply more money going to the same number of goods. So-called supply chain disruptions are more money to the same services, and “cost-push inflation” nothing other than more money created to bloat government spending and “infrastructure” plans to the same number of goods. As one of my followers explains, “more credit issued for GDP related purposes chasing the same amount of goods and services.”
More money printed to bloat government spending chasing the same goods and services. Monetary inflation.
Who benefits from this massive spending plan? The biggest beneficiaries of Biden’s large spending plans are Asian economies, according to Bloomberg Economics. Vietnam, Indonesia, and South Ko
Article from Mises Wire