Inflation Is Not What We Need to Worry About

Naked Capitalism has the post Inflation Is Not What We Need to Worry About: the Risk of Major Collapse in the Private Sector Is What Should Be Troubling Us Right Now.

I think the author skirts around some obvious realities.

I think the cause of the current inflation is obvious and should have been obvious to policy makers. In the USA, we have finally started to give economic relief to people who tend to have to spend what they earn. This gave a boost to spending before the supply side had recovered enough from the lockdowns to be able to respond to the increase in demand. I do not know what the policy planners could have done to avoid this situation, but acting surprised at the easily foreseen could be a dangerous reaction. It could evoke counterproductive responses to the inflation.

The other issues he brings up are certainly concerning.

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