Matt Yglesias wrote a fun post on how massive conservative spending on elections may be causing conservative strategist inflation. What I think this post highlights implicitly is where the broader class of inflationistas goes wrong.

Let’s imagine that the Koch brothers wizarded the $400 million they spent on elections out of thin air. That created part of the conditions for inflation.

But there is a second, much more important condition for inflation – supply side constraints. The fact is that there are only so many elective offices, so many candidates, so many strategists and video produces and email spam writers. When you plow more and more money into a supply-constrained market you get rising prices without a corresponding increase in quality or quantity. That’s inflation.

For inflation to happen on an economy-wide scale you need not only for the monetary authority to create lots of money, you also need that money to exceed any corresponding increase in total output. So to believe that the Fed is about to hyperinflationatize us all into the Dark Ages you’d have to believe that there aren’t any more resources to mobilize with all that money, which is bonkers because lots of people don’t have jobs. Here is a cool map showing unemployment rates in lots of countries. They’re high. Is there nothing productive they could be doing?

Maybe not! Maybe you think that supply and production in energy markets can’t support more employment and that’s what makes now like the 70s. I disagree! But you have to make that case too, not just that “ZOMG FED PRINTING SO MUCH DOLLARS RUN FOR THE GOLDEN BUNKERS.”