The recent inflation surge has many consumers and businesses upset — as they should be. Inflation makes it costly to hold liquid assets, which both groups need. Declining dollar values make it more costly for foreign entities to buy from American businesses. Inflation also punishes senior citizens whose savings shrink through no fault of their own.
Congress, the White House, and the Federal Reserve are to blame for the situation, but they are choosing to scapegoat big business. The White House recently issued attacks on large meat processors, saying they have bought up rivals and are raising prices. Sen. Elizabeth Warren (D-MA) has called for the breakup of Kroger, a leading retail grocer.
Read Dr. Jamison’s complete blog post at AEI.