One thing I have thought about recently is that prices rose dramatically in 2022, peaked at 9%, but even though inflation is down to around 3%, prices themselves are *still high* from that 9% jump. So unless we were to have overall deflation, and because wages are just now starting to keep up with *current* inflation, I think it is easy …
One thing I have thought about recently is that prices rose dramatically in 2022, peaked at 9%, but even though inflation is down to around 3%, prices themselves are *still high* from that 9% jump. So unless we were to have overall deflation, and because wages are just now starting to keep up with *current* inflation, I think it is easy to understand why people are still sour about the economy. Unless I’m wrong about this analysis (corrections welcomed from other commenters), seeing inflation now around 3% is good, but the underlying cost increases from past inflation are still hurting people. Shouldn’t that be pretty obvious to economists?
One thing I have thought about recently is that prices rose dramatically in 2022, peaked at 9%, but even though inflation is down to around 3%, prices themselves are *still high* from that 9% jump. So unless we were to have overall deflation, and because wages are just now starting to keep up with *current* inflation, I think it is easy to understand why people are still sour about the economy. Unless I’m wrong about this analysis (corrections welcomed from other commenters), seeing inflation now around 3% is good, but the underlying cost increases from past inflation are still hurting people. Shouldn’t that be pretty obvious to economists?
The lingering pain and shock of inflation should be obvious to economists, but for some reason it isn't.
https://kathleenweber.substack.com/p/biden-and-noah-smith-are-wrong-gasp