On Sunday, July 31st, we marked the 110th birthday of Milton Friedman. As we see inflation climb above 9% and feel the pain at the gas pump, at the grocery store, and everywhere else we buy goods and services, Milton Friedman’s words ring just as true today as the day he spoke them.
As we celebrate his birthday, it feels only fitting to share Milton Friedman’s own thoughts on inflation, pulled directly from his book, “Money Mischief.” May we all be gifted with his wisdom, and - more importantly - with the courage to act.
“Five simple truths embody most of what we know about inflation:
- Inflation is a monetary phenomenon arising from a more rapid increase in the quantity of money than in output (though, of course, the reasons for the increase in money may be various).
- In today’s world, government determines- or can determine- the quantity of money.
- There is only one cure for inflation, a slower rate of increase in the quantity of money.
- It takes time (measured in years, not months) for inflation to develop; it takes time for inflation to be cured.
- Unpleasant side effects of the cure are unavoidable.”
Ponder how pertinent his words are today, in these times of high inflation and low growth.
Join me in pushing back against inflation and holding our elected representatives accountable for policies that contribute to this unnecessary tax on all of us.
If we do, we’ll prosper. If we don’t we’ll fail.
Take a look at this recent article published by the Institute for Energy Research (IER) celebrating this economic genius!