Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/its-been-a-long-time-since-i-t Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter It’s been a long time since I took Econ. 101, but as I remember, if you keep printing ever-greater amounts of currency, inflation takes on a life of its own. Economy Feb 15, 2008 1:09 PM EDT Question/Comment: It’s been a long time since I took Econ. 101, but as I remember, if you keep printing ever-greater amounts of currency, inflation takes on a life of its own. Isn’t that what we’ve been doing at the rate of $150 billion per year for Iraq, all off budget? Plus won’t we compound that problem with any incentive package to stimulate the economy? I can’t believe all those new dollars aren’t partly at the root of our current problems. That’s got to represent at least a couple percent of our $10 trillion economy and, as I think I remember, is the difference between boom and bust. [I] always enjoy your stories. Paul Solman: A slight correction, Tom: That’s a $13+ trillion economy in GDP, which is the final price of all U.S. goods and services, plus a $9.2 trillion national debt. Will the Iraq war, plus the off-the-books Social Security surplus (right now, it’s subtracted from the official deficit), plus the actual deficit, plus the Fed’s lowering of interest rates all lead to a flare-up of inflation? You could say the falling dollar is already a symptom of this, since what inflation means is that your currency is worth less. As to what’s around the corner, I have for 20 years or so quoted John Kenneth Galbraith, whom I once heard say: “There are two kinds of economists; those who don’t know the future and…those who don’t know they don’t know.” We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now
Question/Comment: It’s been a long time since I took Econ. 101, but as I remember, if you keep printing ever-greater amounts of currency, inflation takes on a life of its own. Isn’t that what we’ve been doing at the rate of $150 billion per year for Iraq, all off budget? Plus won’t we compound that problem with any incentive package to stimulate the economy? I can’t believe all those new dollars aren’t partly at the root of our current problems. That’s got to represent at least a couple percent of our $10 trillion economy and, as I think I remember, is the difference between boom and bust. [I] always enjoy your stories. Paul Solman: A slight correction, Tom: That’s a $13+ trillion economy in GDP, which is the final price of all U.S. goods and services, plus a $9.2 trillion national debt. Will the Iraq war, plus the off-the-books Social Security surplus (right now, it’s subtracted from the official deficit), plus the actual deficit, plus the Fed’s lowering of interest rates all lead to a flare-up of inflation? You could say the falling dollar is already a symptom of this, since what inflation means is that your currency is worth less. As to what’s around the corner, I have for 20 years or so quoted John Kenneth Galbraith, whom I once heard say: “There are two kinds of economists; those who don’t know the future and…those who don’t know they don’t know.” We're not going anywhere. Stand up for truly independent, trusted news that you can count on! Donate now