（1）To combat inflation，government needs to reduce the amount of money circulating in the economy，not increase it（by boost spending）
（2）The way to hammer inflation，is to cool off the economy（which is why hiking rate）. Government spending is stimulus package，has the opposite effect.
@tonyget
Thank you for suggesting that YouTube video created by Daniel Lacalle. My comments are as follows:
1. In his 3-minute short video clip, Mr. Guatemala expressed his idea on how to control inflation. He didn't spell out which country's economy or what type of inflation he is talking about. He might not have the intention to make his video as a thorough research thesis, but to me it's unrealistic and not piratical to provide some suggestions to today's sophisticated economy without doing so. Each country, each economy, and each inflation has its own uniqueness and need to deal it differently. To use his government spending cut as a golden rule to combat inflation everywhere in the world is probably not useful and it might not be his original intention at all..
2. An inflation can be caused by unbalanced demand and supply. It can be too much demand, not enough supply, or both. Logically we need to handle them accordingly. Let's use the US as an example. In the past two years US railroad freight train congestion problems in Chicago, Memphis, Kansas City, and other places caused big delays in the US supply chain system. A traditional one-week container journey from LA to Chicago took more than 4 weeks to complete. This is a supply side problem and we must deal with it by improving the US railroad system. In the Bipartisan Infrastructure Act, there is 5-year $27 billion allocated to improve those critical railroad hubs. This type of spending has potential to control the inflation and improve the efficiency and cost of the supply chain.
3. The $52 Chips Act is another good example. This Act has the potential to increase the semiconductor supply and ease the automobile and trucks production shortage. We know cars and trucks transport the workers and goods we need everyday. This is a 5-year spending (about $10 billion a year averagely) can help to reduce the pressure on the supply side. BTW, $10 billion a year is a insignificant number in the US economy.
4. Oil, natural gas, grans, soybeans, and other commodities are traded in the world at several exchanges/markets. Their ups and downs greatly impact the inflation. When there is shortage in Europe, it will push the US' higher too. They are in a pool and influencing each other all the time. We may need to cut the demand (such government spending and consumer spending) to combat the inflation, but we need to analyze the sources and their weights on inflation first. I don't see cutting back a city water modernization project can increase the natural gas production that is in short supply right now.
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