Merien Fortuijn

Interested in: startups, social justice, politics, sustainabilibty, art and music

[Elon Musk @elonmusk]

The rise in prices (inflation) is caused by government overspending, which increases the amount of money faster than the increase in goods & services output.

That is the vast majority of the problem.

Inflation was particularly bad during the Covid years, as there was massive government spending, despite productivity plunging, as people were forced to stay home.

This is further exacerbated by excess regulation, which prevents the market from solving an unmet need (eg housing in high-demand areas).

Occasionally, there is monopolistic behavior by companies, but this is relatively rare and usually only possible if those companies have gained control of their industry regulator. Again, a government, not private sector, problem.