President Joe Biden (D) sees no problem with his spending proposals. Could he actually be right? Here’s a thought on that.
Biden said runaway government spending isn’t inflationary (although he doesn’t recognize the runaway nature of his spending).
Biden missed the opportunity to claim that runaway government (re)regulation also is a net good (although he wouldn’t characterize his reregulation as runaway).
But the two work in concert to control inflation.
Government spending crowds out the private economy’s spending. Government regulation makes the means of production a government concern.
One buyer—Government—and one supplier—Government—means only one price—Government’s. One price means no inflation.
It’s simple, really.