🚀 go-pugleaf

In article <1992Nov5.180526.19978@u.washington.edu>, monaghan@cac.washington.edu (Tracy Monaghan ) writes:

>And again I ask, why such dire warnings?  
>
>According to Andrew Tobias (not known for his leftist leanings),
>with production capacity is at 76% and unemployment at 7%, there will be
>very little inflationary pressure.  Improvements in the infrastructure 
>(highways, high-speed rail, fiber-optics) will increase productivity,
>reducing inflationary pressures (Time, 11/2/92).

Inflation is more related to the amount of money that is being printed.
During the Carter administration, the printing presses were running
full-time to pay the bills.  This is the main cause of inflation, which is 
an indirect way to tax people without them knowing about it.

If there are a lot of new programs that are going to get started under
the new administration, printing money is a likely scenario to to
get them funded, since there will be pressure to keep the new taxes
down.  Or alternately, they may just print money to pay of the
deficit.

The gov't usually points the finger at companies or labor unions or
external factors as the source of inflation.  That is not true.  In
fact, the definition of inflation use to refer to private mints that
issued more paper notes than gold that they actually had.  

Now that were not on the gold standard, it's not as easy to understand
what is too much money being printed, but when this happens, you get
inflation.

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