Idaho Dispatch

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Op-Ed: Inflation: Cause and Condition

By • November 3, 2022

Inflation is defined as an increase in the money supply. Inflation can also be caused by an increase in the rate in which money is spent. The president or Congress can budget more money for certain projects, or to help those suffering loss due to the recent pandemic. But this does not affect prices until the money is actually spent.

Look at it this way. There is generally only a certain amount of goods and services in the world. If you increase the money competing for those goods without an increase in production you have more money competing for the same product, so the price has to go up.

Everyone was excited to get some “free” money from the government. Had this money come from taxation it might be considered a gift. But since it was money just printed and given away it caused prices to rise. So the money given away last year to especially help the poor and the middle class is now causing prices to rise dramatically. Right now this is seriously affecting the same poor and middle class, as they see the price of most foods rising along with the price of gasoline.

If the government resists more give-away projects, the general prices will begin to come down, especially as work picks up and things tend to go back to normal. Our governor here in Idaho gave each of us $300.00, $600.00 for a couple. This is money given to the state by the Federal Government. As long as the State kept the money in the bank it did not affect prices. But once we all have that money in hand, prices will begin to rise.

At the same time, from that same pot of federal money, about $400 million was allocated for education. Many people feel that we are already spending too much on education and most of the increase will just go for higher salaries for teachers and administrators. Most people were willing to approve this spending since they were “bribed” with the $300 “gift.”

Of course the price of gasoline is a special case since the Biden Administration has done all they can to stop the use of fossil fuels. They stopped work on the Keystone XL Pipeline, stopped drilling on federal lands, and stopped the exploration for oil in the Alaska National Wildlife Refuge (ANWR). Under the Trump Administration we were totally energy independent, but now under the present administration we are depending on others. The president has even begged some of our enemies to supply us more oil. He would rather do this than encourage more domestic production.

Everyone suffers from inflation, yet few seem to understand that the government is the only one who can inflate our currency. It is like the child’s book on the Money Tree. Money grows on trees and you do not have to work to get it. You just pick it, like picking fruit. The end result is that no one is working and all are living off the money from the money tree. Thus, we all become poorer, even with money growing on trees.

Few people seem to realize that real money is not what you have in your wallet, or even what is in the bank. Real money is the work done by the citizens of the country. When everyone works there is great national wealth. When some are conditioned not to work the whole nation suffers.

Jim Hollingsworth holds a master’s degree from Pensacola Christian College. He has written four books, two still in print: Climate Change: A Convenient Truth, (now in a Second Edition) and Abortion Compassion.

This Op-Ed was submitted by Jim Hollingsworth. Op-Eds do not necessarily reflect the views and opinions of those at the Idaho Dispatch.

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Tags: Biden, Idaho Governor, Inflation, Joe Biden, Monetary Policy, Tax Rebate

16 thoughts on “Op-Ed: Inflation: Cause and Condition

  1. Yes. Nicely detailed. Raiding the treasury with trillions $ on “green”, climate “crisis” vis the “Inflation Reduction”act, bogus social programs, and massive government fraud as in Teachers union…… and getting nothing in return. The Public school system is undeniably an epic failure. And look at the cost!
    Government IS the problem. Dems and rinos and lawyers have destroyed the US with the evil behemoth of massive out of control government.

  2. Good on most points. Teachers do need better compensation at least at the pre college level. You get what you pay for and Idaho pays poorly. If the curriculum needs addressed then do so. Separate issues.

    1. thats just a lie teachers have been saying for decades, teachers are paid very well. they have free healthcare and a pension and paid vacation. they work 7 to 8 months a year. and get every holiday off that exist.

      1. I’m a teacher and I agree with you. Teacher’s don’t need better compensation. School’s need to stop wasting money.

  3. Real money is a reflection of real work performed. You can’t create “money” with real value without doing work with real value. Why has gold (and silver) typically been used as a medium of exchange going back thousands of years? Because it couldn’t be faked (ie printed). It had to be dug out of the earth, refined, and then minted. And because there is a limited supply, it had intrinsic value. Not so with paper.

    Two of the biggest mistakes this nation has made are #1 allowing for the creation of the Federal Reserve and #2 moving off a hard money standard.

    1. Ask Dick, Nixon why he moved us off of the Gold standard? I’ll tell you, to pay for the Vietnam war with inflated dollars. Move to now, after 30 years of the military rape of the taxpayers for losses in the middle east, Afghanistan, Somali , the foreign aid packages [rumors have it that the kick backs are wonderful] and basically the redistribution of taxpayers wealth by our politician crime gang , here we are despite what the Tv and radio talk show hosts are telling us.

  4. Good information. I’m very concerned about our vote for Gov. I’m going to do something I never do and that’s to write in a candidate, ‘Bundy”. I understand it could possibly make it possible to have a Dem become gov but what’s the difference with Little. Is there really that much difference? Please convince me Little is a better choice.
    If we leave Little in office he will continue to become more and more of a dictator. Our freedoms are at stake with this man. He’s in bed with the deep state.
    All the Fed money, mandates, lockdowns wouldn’t have happened if he really cared about his constituents. I write him all the time and I get the same pablum reply that means nothing. He was asked to not spend the money and send it back but to look better he decided to give the money out like trick-r-treat money all to gain more popularity, for the uneducated it is. Our schools have made sure the kids don’t understand economics so they grow up with no conception of where this money comes from; it’s free money from a unicorn or money fairy.
    Have any suggestions?

  5. Don’t leave the Federal Reserve bank out of the equation. They are the ones who ‘create’ the fake money we depend on and who receives the income from inflation when the government ‘borrows’ money from this private bank. Until we go back to a legitimate currency backed by real assets, like gold, we are at the mercy of these central bankers.

  6. Little HAS to go….

    I am all in for Bundy. Even if he is a complete clusterf#ck, it will be a marked improvement over our current leech.

  7. Yeah it sickens me they blackmail us, we’ll give you the money we overcharged you but only if we can take a third of it for schools first. ITS FOR THE CHILDREN!!! you bigot racist dont you care about the kids….

  8. If one is curious about the truth, history has the answers. Look up the speech by Congressman Louis T. McFadden on the Federal Reserve from 1934…I DARE YOU! If one reads the entire publication which can be found on the internet you will learn the Real Reason our great land has been pillaged to financial death!

    Our country, our Congressmen, bankers, people were all warned! It has been reported that McFadden was actually poisoned…I don’t doubt the rumor. Why was the Titanic sunk? The richest man in the world, John Astor and his wife were on the Titanic! Astor was NOT in favor of the Federal Reserve and he, too, had to be eliminated!

    We have been lied to for generations about most events in our history. It’s time to take off the blinders!

    And…by the way…teachers do not need more pay! You won’t get any more for your money! Administrators need less pay as they are the real crooks in this educational system…too much waste and too much focus on athletics and little focus on what is important.

  9. Remember these two things, our politicians, government employees and the military are what bankrupted us and destroyed our lives and the Tv even though it the truth and the light in most peoples rooms . the Tv lowers the IQ greatly.

  10. I fully concur and this is the most important lesson that is NOT taught in schools. It was not even stressed enough back when it WAS taught. The most destructive weapon you can wield in an economy is hot money. It sends the signal to raise prices arbitrarily. Go back to 1945, Bretton-Woods established Gold as the money base. This nation and even the free world built it’s modern middle classes. Then in 1970, we changed to a Petro-dollar and right then and there, the nation and world suffered immensely. We have only doubled down on this incessant print-spend spree, and it has only yielded more destruction.

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