The right-wing myth that inflation is cause by the rich buying yachts and poor by consuming is ridiculous and has no historical basis.

The current right-wing myth that inflation is caused by the poor consuming too much, driving up prices, and the rich using their money to buy luxury goods, is not only ridiculous but also has no historical basis at all. It is just as ridiculous as the claim that corporations will create jobs if they are given tax breaks and that CEO salaries are the result of the free market. This myth is also pretty much an admission by the right that corporations are now so rich and powerful that even if they wanted to, politicians have little power to reign them in and are instead forced to make the poor suffer.<br><br><br>In reality, all historical data shows that the only time inflation is caused by people consuming too much is when a war is going on. Otherwise, the real reason for inflation is an imbalance between aggregate supply (the amount of goods and services produced) and aggregate demand. Thus, the correct solution is to either increase aggregate supply, decrease aggregate demand, or both. In reality, this means the government will increase taxes on the rich and corporations, impose price controls, and/or increase interest rates to decrease aggregate demand or give tax breaks to corporations, impose austerity measures on the poor, and/or give tax breaks to corporations to increase aggregate supply.<br><br><br>And no, I am not saying that the poor cause inflation by driving up prices, that is a different right-wing myth. In reality, prices are always determined by corporations. What I am saying is that the right is now saying that corporations can no longer be reigned in and that the government has to take measures to decrease aggregate demand to fight inflation. However, the rich have accumulated so much wealth that even if the government imposed a 50 or 60% tax increase on the rich, that would still not cause the rich to decrease their spending habits enough to decrease aggregate demand enough to control inflation. So, the government is now forced to also impose austerity measures on the poor, cause the poor to decrease their spending habits, decrease aggregate demand, fight inflation, and line the pockets of corporations