Immigration reform is the supply-side liberalism we need

Source: The Hill
by David James Hebert & Alexander William Salter

“Record-high inflation has wreaked havoc on an economy already struggling to recover from COVID-19. The Federal Reserve is aggressively hiking interest rates, but it’s too little, too late. When too much money chases too few goods, rising prices are inevitable. Since the start of the pandemic, the monetary base has risen 60 percent and the M2 money supply 40 percent, outpacing the uncertainty-induced spike in liquidity demand. If we want to tame inflation, we need to stop running the printing presses. But we also need bold supply-side reforms. It’s time to liberalize immigration policy. Making it easier for people to come here and work increases the availability of labor. That would boost the goods supply relative to the money supply. While it’s not a panacea, immigration can ease pricing pressures.” (08/04/22)