Quote:
Originally posted by Mulhollanddose
Inflation is a natural phenomena in a growing economy, naturally.
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No, inflation is caused by the government printing money. It is a "tax" that very few recognize they are paying -- which is why governments love it!
The government applies this hidden tax through the implementation and monopolistic control of a fiat money supply. The government spending newly printed money in the economy has complex effects on the economy, but ultimately results in general price inflation.
The final result of the increase in the money supply can be understood by simple "supply and demand" economics: More dollars chasing goods and services yields higher prices.