In Jim Cook's Archive


All the new people coming into our country illegally are getting money from the government. The total must be enormous. The U.S. is doing itself in through reckless federal spending on every imaginable problem. This is why we have inflation. The government has to create new money to pay its bills. Large increases in the quantity of money lead to higher prices. Homeowners are elated to see the values of their houses appreciate, but more than anything, it’s the loss of purchasing power of the money that accounts for it.

Liberal politicians have no qualms about massive spending. Believe it or not, they don’t connect the dots between spending and inflation. They only want to pass out unlimited amounts of free money. There’s not many things that are worse for our country than severe inflation. The great libertarian writer for Newsweek and the New York Times, Henry Hazlitt (1894-1993) explained, “Inflation is harmful because it depreciates the value of the monetary unit, raises everybody’s cost of living, imposes what is in effect a tax on the poorest, wipes out the value of past savings, discourages future savings, redistributes wealth and income wantonly, encourages and rewards speculation and gambling at the expense  of thrift and work, undermines confidence in the justice of a free enterprise system and corrupts public and private morals.”

He continues, “A period of inflation is almost inevitably also a period when demagogy and anti-business mentality are rampant. If implacable enemies of the country had deliberately set out to undermine and destroy the incentive of the middle classes to work and save, they could hardly have contrived a more effective set of weapons than the present combination of inflation, subsidies, handouts and confiscatory taxes that our politicians have imposed upon us.”

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