My November column for Project Syndicate...: Some respected economists are talking as if the US economy is in serious inflationary trouble. But the current uptick in price growth is highly likely to be a largely benign consequence of the post-pandemic recovery.
I don't think "inflation" ever was something I, or wife, considered in life decisions. Here we sit fat dumb and happy and still don't consider "inflation" in our buying decision. The wonderful wife has a Tesla and a Cessna 172. She did not factor in "inflation" in those purchases. That said, light plane prices have gone through the roof. Then also the prices of the instrumentation upgrades are outta sight!!! My wonderful late wife was a CPA and said during the rate runup back in the day that "inflation" was never a topic in her accounting classes.
We bought some of those 12% Wip Inflation Now bonds.
I agree completely. Bankers hate inflation because it makes it too easy to repay loans. Since they control our financial infrastructure, they have been keeping the economy in stasis for decades rather than accept the level of inflation necessary for non-financial economic growth. If the economy ever returns to its 1950s & 1960s growth rates, we're going to see serious skid marks.
I submit that the reason you cannot follow the "logic" of the inflation hawks is that there is none. It's scare-stuff designed to justify policies that keep workers down. The real question is "why would economists whom you respect be subscribing to morally bankrupt policy prescriptions."
I joined the labor market, full time, in 1959.
I don't think "inflation" ever was something I, or wife, considered in life decisions. Here we sit fat dumb and happy and still don't consider "inflation" in our buying decision. The wonderful wife has a Tesla and a Cessna 172. She did not factor in "inflation" in those purchases. That said, light plane prices have gone through the roof. Then also the prices of the instrumentation upgrades are outta sight!!! My wonderful late wife was a CPA and said during the rate runup back in the day that "inflation" was never a topic in her accounting classes.
We bought some of those 12% Wip Inflation Now bonds.
I agree completely. Bankers hate inflation because it makes it too easy to repay loans. Since they control our financial infrastructure, they have been keeping the economy in stasis for decades rather than accept the level of inflation necessary for non-financial economic growth. If the economy ever returns to its 1950s & 1960s growth rates, we're going to see serious skid marks.
I submit that the reason you cannot follow the "logic" of the inflation hawks is that there is none. It's scare-stuff designed to justify policies that keep workers down. The real question is "why would economists whom you respect be subscribing to morally bankrupt policy prescriptions."