Inflation is caused by too little capacity

Not too much money.

7 min readJun 1, 2022

The classic WPA image of Black out-of-work people standing in a breadline in front of a billboard depicting a white family in a luxury car, captioned ‘World’s Highest Standard of Living…There’s no way like the American Way.’ The billboard’s image has been replaced with a picture of ruined, abandoned factories.

Inflation is here, and there are a lot of explanations for it. People who worry about the monetary supply — especially people in the deflation-loving cryptocurrency world — blame it on excessive money creation during the pandemic and uppity workers demanding higher wages:

Inflation is caused by too little capacity

Not too much money.

Written by Cory Doctorow