A Patron of Economic Update asks: "I am still struggling with the concept, terminology and reality of inflation. A little reading tells me that inflation is actually an increase in the supply of money mainly through the creation of debt by banks. It seems to me that there would be a "natural" increase in the supply of money because of an increase in population, workforce and productivity but not an increase in prices. Price increases are caused by owners, suppliers, distributors as a means to increase profits under the guise of "inflation" as terminology. The problem of price increases is further exacerbated when the increase of the supply of money is invested in stocks, assets and financial gimmickry, in effect stealing the increased productivity of the workforce. Am I on the right track?"
This is Professor Richard Wolff's video response.
Ask Prof Wolff is a Democracy At Work production. We are committed to providing these videos to you free of ads. Please consider supporting us on Patreon.com/economicupdate. Become a part of the growing Patreon community and gain access to exclusive patron-only content, along with the ability to ask Prof. Wolff questions like this one! Your support also helps keep this content free to the public. Spreading Prof. Wolff's message is more important than ever. Help us continue to make this possible.
Follow us ONLINE:
Learn more about [email protected]'s NEW BOOK by award-winning print and broadcast journalist Robert "Bob" Hennelly.
Stuck Nation: Can the United States Change Course on Our History of Choosing Profits Over People?
available at www.democracyatwork.info/books
“Hennelly brilliantly analyzes our capitalist crises and how individuals cope with them, tragically but often heroically. He helps us draw inspiration and realistic hope from how courageous Americans are facing and fixing a stuck nation.”
- Richard D. Wolff