Government intervention = higher prices

The following chart is from American Enterprise Institute economist Mark Perry.  Perry periodically puts together charts like this one showing how the costs for various commonly-purchased items evolve over time.

While inflation is driven by money printing and an increase in the money supply government causes inflation as well. Notably, the items highlighted below are ones in which government plays a major role. The others are ones in which government does not play much of a role.

Interestingly, in recent months there has been an uptick in the prices of new cars as is readily apparent on the chart. That is an area the government of New Mexico has taken more interest in recently with adoption of the Gov.’s “Clean Car Rule.”

Limiting government involvement in the economy is another way to reduce inflation.

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