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Today’s local headline concerns the rapidly rising price of food. The Wall Street Journal leads with a story about rising commodity prices. A lot of those commodities are food. No doubt about it, food is getting more expensive.

Meanwhile, our Federal Reserve plans to intentionally cause greater inflation by using a technique they call “quantitative easing”. You or I would call it “printing money”. This has made most of the rest of the world to get upset. Threats of a trade war are looming. One consequence of all this will be higher prices for food.

Meanwhile, Our President is giving speeches saying how wonderful this all is!

Has everyone gone mad? In a word, NO.

A lot of people in government believe in an economic theory that says, in the long run, this is all for the best. A lot of economists agree. But a lot of other economists disagree and think this will push us farther in the ditch.

Who’s right? To answer that for yourself, you have to study some economics. Economics isn’t some irrelevant study of money and trade – it’s at the very heart of our well being. Get the economics right and times are good. Get it wrong, and things are awful.

Sadly, most people don’t know enough to have an informed opinion. I guess they deserve whatever they get. The problem is, we all get the results, good or bad. Understanding economics lets you be part of the solution. Otherwise, you’re part of the problem


One response to this post.

  1. If the voters didn’t like mandatory health care, they’re really gonna hate food inflation. This is the dumbest dirty trick any political party has ever played on the American people no matter what the economic models say. By foisting food inflation on us there won’t be another Democrat elected to political office for the next two centuries and justly so. The trick to ruling people, the Romans told us, was bread and circuses. Take the bread away and things can get really nasty.

    There are many U. S. citizens barely scraping by right now. This will put them under, put kids and even adults at risk of starvation, and cause severe economic hardship even for those people who still have jobs. But I suspect economists don’t give a fig for that stuff. Let em eat cake, right?


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