Causes of inflation shape every financial decision a business owner makes, from pricing products to hiring employees and financing growth. In this episode, Tom Wheelwright speaks with economist Carola Binder, author of Shock Values: Prices and Inflation in American Democracy, about why inflation surged in recent years and what business owners must understand now.

Wheelwright and Binder break down inflation beyond headlines. They explain how monetary policy, government spending, and public expectations combine to create persistent price increases. Rather than treating inflation as a temporary event, they show why it becomes self-reinforcing once businesses and consumers begin anticipating higher prices.

You will learn:

• The real economic drivers behind recent inflation
• The role of central bank policy and public expectations
• Why inflation affects small businesses differently than large corporations
• How pricing decisions determine whether your business survives inflation
• Practical ways to make your business more resilient

This episode addresses a critical problem entrepreneurs face today: many business owners react to inflation after costs rise instead of preparing beforehand. Understanding the mechanics behind inflation allows investors and entrepreneurs to adjust pricing, manage debt wisely, and protect cash flow in a changing economy.

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.
03:24 – Why does the Fed want inflation?
07:53 – Definition of inflation.
11:42 – Understanding monetary dominance.
13:54 – Government vs. The Feds
17:43 – Cause and effect in voting, debt, and wages.
22:13 – Have wages kept up with inflation?
26:11 – Consumers vs. “Greedy Companies”
28:00 – Inflation & The Election.
34:00 – Will we see price controls?

Looking for more on Carola Binder?
Books: “Shock Values: Prices and Inflation in American Democracy”
X / Twitter: @cconces
LinkedIn: https://www.linkedin.com/in/cconces

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