Inflation

There is a danger in all the government spending and it is inflation but how and when. Unemployment is at 6% and full employment is considered 3.5%. Government spending will not cause inflation until full employment is reached. The reason is that the money is used to purchase goods and services and as long as there are unemployed people ready to enter the work force more of everything can be produced. Once full employment is reached then too much money is chasing too few goods and the prices rise. The money the government is currently throwing into the economy will come in over the next ten years and if full employment is reached before all of this money is in the system then inflation will follow. It will be very difficult to stop or slow projects when full employment is reached so there will be inflation. How much is anyone's guess.