Rising prices can occur for two distinct reasons; either 1) a change upward on the supply and demand curve or 2) an increase in the supply of money.

The upward movement of price equilibrium is caused by either a decrease in supply or an increase in demand.

An increase in supply is most achieved by increases in productivity, facilitated through innovations in capital (technology) and labor (entrepreneurism)…proven most achievable under a free market, capitalist economic system, which entails maximum private control (free market) over the means of production and a minimum control by Government control over the means of production.

An increase in demand is most influenced by increases in population and increases in wealth of the population. (weathly societies tend to have moderate to low birth rates and poor societies tend to have higher birth rates…a counter-intuitive truth)

Finally, an increase in the supply of currency, given no change in the supply and demand curves, will increase prices.

A significant increase in productivity without an increase in the supply of currency could lead to an increase in the supply of goods and services with a decrease in prices! This is a formula for wealth maximization! (a rising tide that lifts all boats and yachts).

So, the most destructive force in classic economics is an excessive increase in the supply of money!

You can guess which course the US has taken…thanks to the Federal Reserve system (out of control).