We are not monetarists who think that the money supply is the only thing that determines inflation and the pace of economic growth. Pro-growth economic policies increase the SUPPLY of goods and services and thus reduce inflation.  Reagan proved this in conquering the 1970s reign of double-digit inflation.

But the money supply – M2 – in the graph below – does have a big impact on where inflation is headed. We predicted on these pages that inflation would come down and it has fallen from 9.1% to 4.9%. That’s still way too high and way above the 2% target. We are much more concerned now about a secular stagnation of growth that has averaged an anemic 1.0 to 1.5% for the past six quarters.

Can anyone point to us one single Biden policy that is pro-growth? Even one? This administration is all about redistributing wealth – not creating it.