…The supply of money governs inflation. Print it without either greater productivity or more goods and services, and the currency cheapens. Yet, America apparently rejects that primordial truism. The United States is more than $28 trillion in debt—about 130 percent of the country’s annual gross domestic product. The government will run up a $2.3 trillion budget deficit for 2021 after a record $3.1 trillion deficit the year before. The Biden administration still wants to borrow more—another $2 trillion in new social programs and “infrastructure.” …In the crazy past 100 days, the price of everything from lumber, food, and gas to cars and houses has soared. Yet, many interest rates are still stuck at or below 3 percent. Jobs are plentiful; workers are not. Is it a surprise when government handouts discourage the unemployed from taking a pay cut to go back to work? After being freed from 13 months of quarantine, Americans are splurging. But this huge pent-up demand is causing shortages.
