12/11/2025
The conversation that politicians don't want to have is that innovation, competition and supply makes things more affordable. The government, thank God, does not.
The government can cause prices to rise, as they did, but reverse inflation is actually bad for the economy.
Negative inflation (deflation) triggers a vicious cycle: people delay spending expecting lower prices, which crushes demand, forcing businesses to cut production, wages, and jobs, leading to less spending and deeper economic contraction, while simultaneously increasing the real burden of debt and making it harder to repay. This slowdown discourages investment, raises unemployment, and can spiral into a recession or depression.
For example, in the past decade, pressure has been placed on cattle ranchers to reduce their land impact, simultaneously Bill Gates has become the largest owner of farmland in the United States as he converted many cattle ranches into vegetable "protein" farms. In this process cattle were slaughtered reducing beef prices temporarily, but bringing us into a difficult position where other cattle ranches need to be focused on breeding cattle instead of selling them to increase supply.
And yes, reducing our dependence on goods from China is going to raise prices. The alternative is worse.