What is the primary cause of inflation?
In accord with numerous facts, Ben Bernanke of the Federal Reserve stated in 2002, "U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services," thus causing inflation. While ignoring those facts, President Biden and his allies are blaming inflation on (1) Covid-19, (2) Russia's invasion of Ukraine, and (3) corporations like Kroger. In reality, (1) inflation was tame during the pandemic until Biden entered office, (2) inflation reached a 40-year high before the invasion began, and (3) the prices paid by retailers like Kroger are growing faster than the prices they charge consumers.