Short answer, no. Here’s why:
Published in · 4 min read · Mar 22, 2022
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Every time the Federal Reserve creates more dollars, inflation occurs.
Increasing prices for food and gas is often described as inflation, but inflation is best thought of a different way:
As more dollars are printed, the value of each one decreases.
It makes sense - if something is very abundant, people perceive it to have less value.
For example, Michael Jackson’s ‘Thriller’ jacket is one of a kind. Because there’s demand and the supply is limited to 1, the value is very high. In fact, the jacket (a piece of leather) sold for $1.8 million in 2011.
As dollars become more abundant, they lose value
The chart shows the supply of US dollars over time. As you can see, it goes up exponentially. This means the value of every dollar is being diluted exponentially.
I go more in depth on why the US hasn’t seen higher inflation here.
