What causes inflation is one of the most misunderstood questions in finance, yet it directly affects every investor, business owner, and employee. In this episode, Tom Wheelwright sits down with economist Ryan Bourne, author of The War on Prices, to examine whether rising prices come from corporate behavior or government policy.
Wheelwright and Bourne explain how inflation actually develops through monetary expansion, fiscal stimulus, and price controls, and why political narratives often blame the wrong source. They break down the difference between macroeconomic policy decisions and the real-world microeconomic consequences businesses face every day, including higher operating costs, wage pressure, and shrinking margins.
You will learn:
- The economic mechanics behind inflation
- Why price controls historically fail
- How government policy influences purchasing power
- How inflation impacts small businesses and investors
- Practical strategies to mitigate inflation risk
This episode matters now because inflation reshapes taxes, interest rates, and asset values. Entrepreneurs who understand its true drivers can adjust pricing, choose stronger assets, and protect long-term wealth instead of reacting to headlines.
Order Tom’s book, “The Win-Win Wealth Strategy: 7 Investments the Government Will Pay You to Make” at: https://winwinwealthstrategy.com
00:00 – Intro.
03:05 – Imbalance of supply & demand equals inflation.
06:48 – The Pandemic: What was the breaking point?
09:25 – The bigger story behind monetary policy.
11:39 – What kept inflation low during the financial crisis of 2008-2010?
14:24 – Does consumer spending impact inflation differently than investment spending?
17:17 – How do businesses combat the misinformtion and prejudice against small business
23:17 – The future of taxes and its impact on the market, inflation, and economy.
Looking for more on Ryan Bourne?
Website: https://www.cato.org/people/ryan-bourne, https://www.cato.org/books/war-prices
Books: “The War on Prices”
X / Twitter: https://twitter.com/MrRBourne
Substack: https://ryanbourne.substack.com/
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