The United States government is, yet again, facing a budget crisis. Government funding is set to expire on December 3, 2021 and Congress has a deadline of December 15 to raise the debt ceiling. Otherwise, the U.S. will default on its debts, and a worldwide financial collapse becomes a possibility.
Modern Monetary Theory (MMT) is part of the reason these crises — not to mention inflation — are becoming more common. It theorizes that because modern states control currency and have the power to levy taxes, they can print as much money as they want.
Vox recently posted a video explaining how inflation works and why some people want inflation to rise in the US. However, they are not telling the whole story, so we had to set the record straight.
We invited our good friend, professor Antony Davies, to explain what inflation is and how that affects the lives of everyone. He talks about how inflation erodes people’s purchasing power, the role of politicians in all this, and what people can do to protect themselves against inflation. We want to hear what your savings strategies are against inflation. Comment them down below!