ABQ Journal realizes inflation is a problem, ignores government as cause

The Albuquerque Journal has figured out that inflation is increasing rapidly and causing problems for New Mexico businesses. So, we got two stories (here and here)  in the Monday, August 16 edition of the newspaper which include interviews with numerous businesses and a few economists on the rapid rise in prices across the economy.

What was missing? Government “stimulus” policies, especially the “enhanced” unemployment benefits. The only hint of government’s inflationary policies impacting inflation is the following from the owner of Car Crafters saying, “it chafes him that people are out there making more staying home when he sees his staff pushing themselves so hard…It just seems unfair.”

What are those inflationary policies? Well, start with the Federal Reserve. That is discussed in detail by Mises Institute economist Bob Murphy here. 

The generous unemployment benefits and overall economic “stimulus” payments are direct factors as well. People have more money in their hands and with supply chains slow to normalize, inflation is an obvious result.

There are numerous other government factors impacting inflation including rising fuel prices (thanks in part to the Biden Administration’s ongoing anti-oil and gas policies including ongoing permitting issues and the Keystone XL pipeline cancellation.