So I got up this morning and CNBC had the blaring headline “U.S. inflation in January surged at fastest rate in 40 years” (clicky). From the article:
The annual rate of U.S. inflation is rising at its fastest rate in 40 years as supply-chain disruptions and rising transportation costs show no sign of abating.
A key inflation gauge, the Consumer Price Index, rose 7.5% from a year ago, the Labor Department reported Thursday — the largest increase since May of 1982. Core inflation, which strips out volatile food and energy costs, was 6%. The CPI index rose 0.6% in January, the same pace it showed in December but a slowdown from the 0.9% monthly increase in October.
Part of the problem for consumers in adapting to inflation is…the public doesn’t understand it. So, rather than write a novel, I’m just going to share a video on the subject from the late economist Milton Friedmann.
I recommend you listen to it while you’re working. Friedmann’s thinking is clear and logical, which is a change from most of the drivel in contemporary media.
If you don’t have an hour to spare, here is the main idea: the only way to stop inflation is to have government create less money and spend less money. And, the reason why we have inflation is because the public wants it, and demands the government give them money.