Published May 12, 2022
Wednesday’s monthly inflation report shows that fighting the scourge of rising costs will take time. That means Republicans should start to get serious about how they propose to tackle it if they win the midterms. If they do it right, they can both fight inflation and hit a political home run.
A smart plan starts by understanding what’s causing our inflation. Democrats seem to believe that it is largely the result of the pandemic‘s effects on labor markets and supply chains. But that’s mostly wrong, although these things surely affect some prices on the margins. Inflation’s real cause is the massive expansion of the money supply that the United States used to fight the pandemic’s economic impact.
Henry Olsen is a Washington Post columnist and a senior fellow at the Ethics and Public Policy Center.