2023-05-14 02:04:02
Inflation is the hidden tax. And the rulers always try to hide the loss of purchasing power or blame anyone but the only one that causes most prices to rise at once: printing money well above the actual demand for it.
The CPI in April reflects an increase of 4.1%, eight tenths in the annual rate. Food rose 12.9% in the interannual rate. Additionally, in the intermonthly rate, meat rose 1.2%, bread and cereals 0.5%, sugar and jams 1.6%, clothing 8.3%, accommodation services 12%, fuels 1.1%, footwear 5.5%… All this in one month.
The government’s failure to contain inflation is evident. The CPI has increased by 15.18% since Sánchez governed. The underlying has risen 13.25%. Since December 2019 inflation (CPI) has risen by 13.9% and since December 2021 by 9.3%
As Dr. Juan Manuel López-Zafra explains, It is false that the rise in core inflation is moderating, as the Government affirms. The variation rate in two years has been, in January, 9.57%, in February 10.83%, in March 11.12% and in April 11.29%.
Well, nothing… to print currency with an “expansive look” as required by the PSOE program that asked to monetize public spending or that of Sumar that asks for the same.
They try to convince us that we have to choose between inflation and growth, but it is a false dilemma. Inflation is generalized impoverishment and, of course, it does not imply that there is growth. In fact, the evidence of Spain is stagflation.
That there is no stagflation? If the GDP has not recovered between December 2019 and the first quarter of 2023, the public debt has increased by 300,000 million euros and the accumulated inflation in that period is 13.9%, it is unquestionable that Spain is in a serious stagflation.
Inflation is evidence of a dangerous imbalance that impoverishes everyone. is the sample of the generalized loss of the purchasing power of the currency and a transfer of wealth from the productive sectors and families to the Government, which is the only one benefiting from inflation since it collects more and dilutes part of its indebtedness. But the voracious deficit state is not even capable of reducing its imbalances with inflation. He embarks on even more spending, assumes that extraordinary income is recurring, and instead of reducing debt, he increases it.
Those who defend inflationism as a way to reduce debt forget that the first inflationist, the Government, embarks on further triggering the imbalances whether or not it has record revenues. A government that has had all the tools of the so-called Keynesianism and leaves an even worse result: If Lord Maynard Keynes raised his head and saw the government shoot up taxes, increase the structural deficit and impoverish all citizens with the greatest drop in purchasing power of the European Union, would demand that his name not be used to justify this disaster.
Growth does not come from indebtedness, public spending and inflation. Growth comes with prudent savings and investment.
What we are living is a slow expropriation of wealth created by the productive sector with the sole objective of massively inflating political spending with an extractive and confiscatory strategy. Inflation is robbery.
#False #Choice #Inflation #Growth