Which government policies are driving inflation?
This is a pretty easy question to answer. The general monetary approach since 2001, but especially since 2008, has been a QE approach designed to 'stimulate the economy'. By its very nature this is an inflationary approach. Contrast with the Fed's new QT plan (along with rate hikes), which is expected to shrink the money supply, tighten credit, and possibly even cause a recession in its attempt to curb inflation. Clearly if the current plan is meant to curb inflation, the previous plan directly involved creating inflation. And in fact the huge injections of monies into the economy since covid are a significant part of what many people think contributed to the hyperinflation of the markets in 2021.
Other policies which drive inflation include some of the covid policies, especially lockdowns. Putting aside whether these were good, they created an artificial and insane demand for materials such as wood for home renovations, huge shifts toward large grocery shopping and ordering food, large shifts toward home activities such as baking (which amazingly created shortages of flour and other commodities), as well as other inflationary results in salaries and venture capital in tech. I'm only naming a few areas directly affected by government policies. There are obviously many indirectly effected as well. Much of it has to do with China's policies, with supply chain issues related to covid (for instance in the auto industry), much of it IMO is opportunistic price gouging, and other contributing factors such as the war.
Btw I have at times heard of high oil prices referred to as a necessity in order to reduce demand and consumption. I have heard economic experts mention the need for the oil prices to go even higher in order to curb consumer demand to the extent desired. Now we have no way of know
who is calling for such things, and whether Biden is involved, or various groups. But the fact that powerful contingents of political capital are basing their view of the future as being linked to AGW concerns and getting us off oil, it should come as no surprise that an overt anti-oil policy would be pursued though deliberately causing prices to increase so as to make people think oil is finished. But since oil literally cannot be finished for now in the way they want, they end up just destroying regular people for political brownie points and gaining nothing for anyone.
All of these are direct results of government influence. And it's not as if I'm privy to private conversations in Washington, so I'm sure there are many more direct influences I'm not aware of.
