Is the cost of anything not going up?

[Lawrence Duckworth]

Malcolm McLeod--"Causes of inflation..the main contributing factors include the increase in the money supply."


​What does this mean? How do you increase the money supply? Who does that; is it just a matter of working more hours and earning it?

[Jim Koepke]

Malcolm McLeod--"Causes of inflation..the main contributing factors include the increase in the money supply."


​What does this mean? How do you increase the money supply? Who does that; is it just a matter of working more hours and earning it?

There are a few ways the money supply increases. When government issued bonds are redeemed, the money to redeem them either has to come from the taxpayers or the government printing presses. (can you guess which is more likely to occur?) Municipal bonds from states, counties and cities have to be paid off by collecting of taxes. U.S. Government bonds are often paid off by cranking up the printing presses. To much printing press money can put too many dollars chasing a shortage of goods. That can, and most likely will, cause inflation.

If enough people stopped buying potato chips and soda pop, prices would likely drop. That is what sales are about. Retailers don't like products that don't move off the shelves.

jtk

[Brian Runau]

Walmart Mart family and shareholders benefit from stock pricing going up.

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