When Inflation Comes, Blame Big Government
Raw food commodity indexes, for example, have hit all-time highs. And the broader CRB Commodity Index, including food, energy and industrial commodities, has run up 32% the past 12 months.
IBD Editorials
EXCERPTS:
As anyone who owns a car or truck knows, oil prices have jumped 29% in the past year to more than $108 a barrel. This has pushed gasoline prices over $3.60 a gallon nationally, twice what they were when President Obama entered office.
It’s really government that causes inflation with actions such as:
• The $2 trillion in money created by the Fed under “quantitative easing” since 2008, an unprecedented shot of liquidity pumped straight into the economy.
• The $5.5 trillion in new debt added by our government in just three years — nearly a 60% rise.
• The Environmental Protection Agency’s move to regulate all stationary producers of carbon dioxide, which has led businesses to put off large investments.
• The surge in regulation at all levels of government, which has added to small-business uncertainty and reduced hiring.
• The record 29% jump in federal spending in President Obama’s first three years, which has crowded out private spending and business investment.
• Spending on TARP and “stimulus,” which could total nearly $2 trillion when all is said and done.
The list goes on.
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