Dan Allie: Inflation robs us of prosperity, makes life harder for Americans

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Published: 09-24-2024 4:10 PM

In a normal economy, inflation is caused by supply and demand. Today’s inflation is caused by printing $2 trillion to pay for government spending, which devalued the dollar. If our money is worthless, it matters not how much you have. Anything times zero is zero.

Food prices have risen significantly, while as many as half of Americans are living paycheck to paycheck. Young families are unable to buy homes. Rents are through the roof. People are unable to sell homes and give up low-interest mortgages and afford higher home prices.

Many people are tapped out. Consumer credit debt is at an all-time high (over $1 trillion). Some credit cards have interest rates as high as 29.99%, (which should be illegal).

While many Americans struggle, our government is awash in cash, with federal funds flowing to state and local governments. These funds come at a high cost. Interest on the debt ($514 billion) is the fastest growing part of the budget, and greater than all the money spent on education ($128 billion), transportation ($70 billion) and veterans ($183 billion) combined.

Our children are not going to be able to afford to pay this government debt.

Who benefits from this debt? The big banks that created and control the Federal Reserve (not part of the federal government).

When prices and wages are raised in response to government-caused inflation, higher prices are locked in. We need to realize the real cause of inflation and demand more for our money, not just ask for more money. That is a game that working families, small businesses, seniors and young people starting out in life cannot win.

No nation has ever destroyed its currency and then taxed its way into prosperity.

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