Government spending as the root of inflation
The speakers argued that persistent inflation is fundamentally rooted in government deficit spending, which drives up the cost of housing, healthcare, education, and other goods.
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The Callback
Structural shifts reduce US economic recession frequency
41 weeks between these two statements.
The guest's model shows that when fiscal policy is non-Ricardian (not backed by future taxes), government deficits directly stimulate demand and are inflationary.
The speakers argued that persistent inflation is fundamentally rooted in government deficit spending, which drives up the cost of housing, healthcare, education, and other goods.