The Cost of Living and Inflation

Cause and Effect

Why is everything so expensive now? Let us start out with the money supply. The federal government has added over 3 trillion dollars in the national debt since the first of the year. This is money that has to be added to the money supply by the federal reserve, which is manufacturing money or printing it in the old days. The money supply has gone up so there is more money in circulation. This makes every dollar you make or own worth much less, thus causing inflation.

This is nothing more than a tax on everybody because inflation affects us all. It is a regressive tax that hurts those on fixed incomes and the poor disproportionately hard. Gas, food, goods, and services cost more and you are making less because of inflation. When politicians spend money the government does not have it hurts us all.

This is an oversimplification of the whole process. My hope is it will make you curious and research this topic.