{"id":58671,"date":"2021-07-19T07:43:42","date_gmt":"2021-07-19T12:43:42","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58671"},"modified":"2021-07-19T07:43:42","modified_gmt":"2021-07-19T12:43:42","slug":"too-much-money-chasing-too-few-goods-and-services","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58671","title":{"rendered":"Too Much Money Chasing Too Few Goods and Services"},"content":{"rendered":"
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Too Much Money Chasing Too Few Goods and Services<\/a><\/h3>\n<\/header>\n
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Inflation can be considered a tax, an especially regressive one, falling harder on those with lower income and\/or assets.<\/strong><\/p>\n

As we\u2019ve\u00a0noted previously<\/a>, the Federal Reserve\u2019s \u201cM2\u201d monetary aggregate began growing significantly faster than the \u201cGDP\u201d measure of economic output in the United States beginning around 2008, amidst the 2007-2009 financial and economic crisis.<\/p>\n

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With the federal government\u2019s massive fiscal and economic \u201cstimulus\u201d policies arriving together with a pandemic and government lockdowns, M2 growth has recently risen dramatically higher than GDP growth.<\/p>\n

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Earlier this week, the Bureau of Labor Statistics (within the U.S. Department of Labor)\u00a0reported\u00a0<\/a>that the Consumer Price Index (CPI) rose in June at one of its fastest growing rates in more than a decade. Some people have been pointing to the fact that year-over-year changes in the CPI may be high recently in part because the comparisons to last year\u2019s levels were amidst the onset of the pandemic. But in the second quarter of 2021, compared to the first quarter of 2021 and on a seasonally adjusted basis, the CPI rose at an annualized rate of more than 8 percent, which is the highest quarterly growth rate since the third quarter of 1981.<\/p>\n

It\u2019s always worthwhile to keep an eye on alternative inflation measures, given the estimation issues associated with government statistics, and considering the source of those statistics.<\/p>\n

Along those lines, a recent\u00a0survey<\/a>\u00a0of small businesses by the National Federation of Independent Business (NFIB) returned a result for prices that hasn\u2019t been reached since 1981.<\/p>\n

And the prices component of the monthly\u00a0Institute for Supply Management survey<\/a>\u00a0of business purchasing managers rose in June 2021 to its highest reading since July 1979.<\/p>\n

Inflation can be considered as a tax, and an especially regressive one, falling harder on those with lower income and\/or assets. Inflation can be considered one cost of government.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Too Much Money Chasing Too Few Goods and Services Inflation can be considered a tax, an especially regressive one, falling harder on those with lower income and\/or assets. As we\u2019ve\u00a0noted previously, the Federal Reserve\u2019s \u201cM2\u201d monetary aggregate began growing significantly faster than the \u201cGDP\u201d measure of economic output in the United States beginning around 2008, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[31458,124,303,426,536,538,24256,3650,4255],"class_list":["post-58671","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bill-bergman","tag-central-banks","tag-fed","tag-inflation","tag-money","tag-money-printing","tag-truth-in-accounting","tag-us-federal-reserve","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58671"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58671\/revisions"}],"predecessor-version":[{"id":58672,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58671\/revisions\/58672"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}