{"id":60280,"date":"2021-11-04T15:42:08","date_gmt":"2021-11-04T20:42:08","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60280"},"modified":"2021-11-04T15:42:08","modified_gmt":"2021-11-04T20:42:08","slug":"the-mainstream-has-the-inflation-story-backwards","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60280","title":{"rendered":"The Mainstream Has the Inflation Story Backwards"},"content":{"rendered":"

The Mainstream Has the Inflation Story Backwards<\/a><\/h3>\n
\"\"<\/a><\/div>\n

The mainstream blames inflation on \u201csupply chain bottlenecks.\u201d But they have it completely backward. In reality, Federal Reserve-created inflation is causing the supply chain mess.<\/span><\/p>\n

According to Biden administration talking points, the economy is booming. Americans are flush with cash. And they are demanding lots of goods. The supply chain simply can\u2019t keep up. That\u2019s why we\u2019re seeing empty shelves and rising prices. Transportation Secretary Pete Buttigieg summed up the mainstream mantra.<\/p>\n

\u00a0Demand is up \u2026 because income is up, because the president has successfully guided this economy out of the teeth of a terrifying recession.\u201d<\/p><\/blockquote>\n

White House spokeswoman Jen Psaki told a similar tale. She said we have supply chain problems because \u201cpeople have more money \u2026 their wages are up \u2026 we\u2019ve seen an economic recovery that is underway.\u201d<\/p>\n

This sounds like a lot of spin. But in one sense, the mainstream is right. As Mises Institute Senior Editor\u00a0Ryan McMaken pointed out in a recent article on the Mises Wire<\/a>, they are correct when it comes to consumer demand and spending, even if they got it right for the wrong reason.<\/p>\n

As Mihai Macovei showed earlier this month, the global volume of trade and shipping volume\u00a0in 2021 have actually exceeded prepandemic numbers. For example,\u00a0in the port of Los Angeles, \u2018loaded imports\u2019 and \u2018total imports\u2019 for the 2020\u201321 fiscal year (ending June 30, 2021) were both up when compared to the same period of the 2018\u201319 fiscal year. In other words, it\u2019s not as if little is moving through these ports. In fact, more is moving through them than ever before. That suggests demand is indeed higher.\u201d<\/p><\/blockquote>\n

But why is demand so much higher? As Psaki said, Americans have more money in their pockets. Wages are up nominally. But it\u2019s not because the economy is booming. As McMaken points out, it\u2019s due to\u00a0inflation<\/a>.<\/p>\n

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

The Mainstream Has the Inflation Story Backwards The mainstream blames inflation on \u201csupply chain bottlenecks.\u201d But they have it completely backward. In reality, Federal Reserve-created inflation is causing the supply chain mess. According to Biden administration talking points, the economy is booming. Americans are flush with cash. And they are demanding lots of goods. The […]<\/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":[124,303,309,426,7617,538,18779,31091,3650],"class_list":["post-60280","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-fiat-currency","tag-inflation","tag-mises-institute","tag-money-printing","tag-schiffgold","tag-supply-chain-disruptions","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60280","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=60280"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60280\/revisions"}],"predecessor-version":[{"id":60281,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60280\/revisions\/60281"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}