U.S. Inflation Frustrations & Potential Solutions with Jon Stewart, Kitt...

I love John Stewart and especially like all the work he's done to communicate about the Macro-Economic problems during and after the fact, over the decades. What these discussions always seem to neglect to acknowledge about inflation is that IT IS NOT DEPENDENT UPON THE AMOUNT OF GOVERNMENT SPENDING!

MODERN MONITARY THEORY clearly shows that INFLATION is a direct result of the QUALITY of the government's INVESTMENTS. If they waste money (such as corporate tax cuts, wars, or giving free loans that are forgiven to millions of small business owners) then you get inflation. Suppose you INVEST money into valuable goods and services, such as infrastructure and education, healthcare and public housing. In that case, you get a RETURN ON INVESTMENT as people work more and better and create more value to drive up both the velocity of money and the total value in the economy all of which can then be taxed later to fix the deficit.

That said, John is absolutely correct that government should be a security blanket for a rainy day, not a giveaway to the corporate elite. The lack of Slack limits our choices. But a better solution to inflation would be to BREAK UP ALL THE MONOPOLIES and introduce competition that will lower prices.