Has deregulation lead to part of the present inflation problem?

[independentusa]

I read an article saying that 60% of the present inflation is due to corporations gauging Americans and reaping huge profits. I believe that this is due to deregulation. When capitalism is unregulated, it often leads to fewer producers of any product and price collusion between the few remaining producers. It is a form of monopoly, where one or more providers can be a monopoly if they work together to maintain limited supply and higher prices rather than compete. I believe this is hat is happening in this country in many of the markets. Look at energy supplies and prices. A limited number of providers are sitting on thousand of permits to find and produce new energy supplies. 60 years ago there were 30 companies supplying gas and diesel and there were even gas wars or gifts for buying at their stations. You can look at dozen of major products and would find the same. It seems that in the past single or multiple company monopolies were broken up and now it is encouraged and we end up not paying for a product, but providing huge profits for those monopolies.

 

[SkyChief]

Inflation can be caused by a few factors.

Typically, Inflation happens when too much money chases too few goods (and services).

COVID caused a national (and global) supply-chain problem, so there is an induced shortage of goods and services.

Another cause of inflation is when a government borrows more money than can be supported by the GDP, which is the case today. The USG borrows (and spends) WAY too much money.

The U.S. currently has a Public Debt-to-GDP ratio of 124%. Any Debt-to-GDP ratio over 100% is inflationary, and unsustainable.

https://www.longtermtrends.net/us-debt-to-gdp/

The long-term solution to runaway inflation is to rein in spending. This will not happen - - our lawmakers spend our money like drunken sailors. So a temporary measure to curb inflation is to limit the money supply. The Federal Reserve will raise rates incrementally over a period of time to help curb inflation. This doesn't "fix" anything - - it's only a stopgap measure.