That can come from deficit spending, or that can come from tax cuts freeing cash for people to spend.
Tax cuts do free cash to be spent that otherwise would be spent by the government. As it gets spent either way, it is not inflationary.
Inflation is the result of an increase in the supply of money relative to the value of goods and services in the economy.
Interesting.
For example, let's say the only things you spend money on are eggs and gas. One day, the price of eggs goes up. You buy eggs, now you have less money to spend on gas. The demand for gas goes down, and so does its price.
I.e. a rise in the price of eggs does not result in an increase in your income to cover it.
But with money creation, there is more money chasing the same goods, so your income goes up along with the prices.
It's the Law of Supply and Demand in action.
That depends on their fiscal behavior and obligations.
Yes, I am. They always do. Federal, state and local.
Inflation results from deficit spending.