Charlottesville, VA (CVILLE RIGHT NOW) – Dr. Edwin T. Burton, a Professor of Economics at the University of Virginia, joined WINA Morning News to discuss inflation, tariffs, and their economic impact. Reflecting on historical prices, Burton noted the drastic increase over time, saying, “I can remember when I was in high school, popping nickels into the Coke machine… I’ve got a picture of me when I was about 12 years old and back in Houston, Texas. I’m standing in front of a gas station, and it has the price of regular up on the sign right behind me, it was 19 cents a gallon.” While nostalgic, he emphasized that inflation, driven primarily by money supply expansion, ensures prices will never return to those levels. 

Burton warned that recent Federal Reserve actions could fuel further inflation. “The central bank increased the money supply by over 50% in 2020 and 2021, and that’s what led to the big inflationary bout,” he explained. He also criticized the Fed’s recent shift back toward money creation, stating that combined with tariffs, this could lead to even higher prices. Addressing the tariffs proposed by President Donald Trump, Burton argued that they would significantly raise costs for consumers, especially on imported goods. “If you do that, those of you who like to buy iPhones can think about paying, maybe double what you’re currently paying,” he cautioned.  

As consumer confidence hits a 12-year low, Burton stressed the need for bipartisan cooperation on economic policies. He criticized both parties for contributing to inflation and economic instability, urging leaders to “face the honest truth about a lot of these policies.” He concluded that reducing tariffs and controlling the money supply could help restore economic stability, but without policy shifts, everyday Americans, particularly lower-income consumers, will bear the burden of rising prices. 

Listen here for the full conversation: