"Is Jimmy Carter Back, or What?
A Flash of Inflation Signals a Warning, But . . .
Is Jimmy Carter back, or what? There’s a big inflation report today — another 0.6% in May. That’s 8.4% at an annual rate over the past three months. It’s 6.5% at an annual rate for the first five months of this year. The Federal Reserve’s target used to be 2%, which is what we had for over 20 years. It sounds really ominous.
...
if Uncle Joe gets his Green Workers Paradise Soviet-style Bulgarian economic policies of tax increases, social spending, destroying the fossil fuel energy sector, then the dollar will collapse and leaping tax rates will choke-off economic growth.
Call it the 1970s with
a socialist spin. In that case we would have permanently higher inflation and a weaker economy.
Right now we’re still operating under
Trump rules. That is, tax cuts, minimal regulation, and energy independence. Hence the vaccinated V-shaped recovery. More people working is a good thing. Prosperity should be a great American goal — not the 1.8% economic growth baseline that Team Biden published as a pathetic defense of their left-wing redistributionist policies. So, we will see about this inflation story. I don't think it’s there yet, but it sure is a threat."
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
www.nysun.com