economy
Capitalism Made The Burrito. Government Made It $20. Socialism Will Make It $40
The first generation of Americans to watch their savings erased by inflation wore the uniform of the Continental Army. Washington’s soldiers were paid in paper Continentals printed by the wagonload, and by 1780 the currency had collapsed so thoroughly that “not worth a Continental” entered the national lexicon. The Founders never forgot the lesson, which is why debates over hard money recur throughout their letters and state papers.
TL;DR
- Inflation has historically eroded savings, as seen with Continental Army soldiers paid in devalued paper currency.
- High prices for goods like a $20 burrito are attributed to government policies, not free-market greed.
- Key government policies contributing to inflation include monetary expansion (e.g., pandemic spending), labor mandates, housing and commercial rent regulations, and federal student lending.
- Specific examples cited are the large increase in M2 money supply, California's fast-food minimum wage leading to price hikes, and regulations increasing the cost of new homes.
- The article contrasts government intervention with market forces, pointing to declining home prices and high earnings for skilled tradespeople as examples of market-based alternatives.
- Proposals for further government intervention, such as price controls, are warned against, citing historical examples of resulting shortages and reduced production.