Chart of the Week From Mark J. Perry: Government IS The Problem
I’ve always known that the federal government is the biggest creator of inflation in the history of the world. This chart by Economics Prof. and AEI Scholar Mark J. Perry proves it. It is in fact the single most revelatory chart I’ve ever seen related to the world of economics.
The premise is simple, the results are amazing.
The Premise: Chart the inflation related to a wide variety of U.S. goods and services from 2000 through 2025, the first quarter of the 21st Century.
The Results: All economic sectors in which the federal and state governments play a major role have exploded in consumer costs.
All economic sectors government by mostly-free markets have seen only modest inflation or actually fallen in consumer costs.
Note: This chart does not include gasoline at the pump, a major consumer product in U.S. society. But, as I showed in my own analysis published here on June 14, today’s gasoline prices are essentially unchanged in real, inflation-adjusted terms since 2000.
So, let me say it one more time in case any doubt still lingers in anyone’s mind about this: The federal government is not the solution to inflation - it is the problem with inflation.
Thanks to Mark J. Kelly for such an outstanding chart.
That is all.
Anywhere the government guarantees money through coercion (via taxpayers) will result in that market being disrupted. A good example is with inspection stickers (or “brake tags”) on cars in Louisiana that were removed as a requirement recently. Some local auto shops based their business on that law staying in effect. Now that the requirement is gone, those businesses can piss and moan all they want when the bottom line is their business model sucks since it’s based on government coercion. Anything the government touches turns to shit, as the saying goes.
Outstanding reservoir of information.
And a hat tip to one of America's top 5 Presidents: Reagan.