High Inflation Is Here To Stay

But the people in power won’t even say as much, let alone do something about it.


News that the September Consumer Price Index (CPI) rose by 5.4 percent on a year-over-year basis should be evidence enough for Federal Reserve Chair Jerome Powell, White House economists, and even the president to admit that we have more than a temporary inflation uptick on our hands. Better yet, it's proof that we should avoid adding fuel to the fire, even if it means cutting back on President Joe Biden's multi-trillion-dollar American Rescue Plan.

Until recently, evidence of inflation exceeding 2 percent—the Fed's traditional goal for inflation—has been dismissed as temporary or transitory, and for good reason. Newly printed stimulus money has been passing through the system. This, accompanied by serious supply-chain disruptions, might be over in another 12 months—if we're lucky.

Then in August, the Biden administration indicated that 2021's economy would show as much as 4.8 percent inflation—but, with an optimistic spin, would fall to 2.5 percent the next year. Meanwhile, there is some stimulus money pending in the yet-to-be determined infrastructure bill, and that complicates the issue.

Avoiding the hard truth or waiting before countering inflationary forces carries a cost. In this case, delays could mean harsher action later when, for example, the Fed hits the money brakes harder to cool the economy. In such a case we might see interest rates head to the ceiling, construction activity and high-tech investment plummet, and the economy roll into a recession.

This is not the first time politicians have obscured the truth with wordplay. In 1978, the CPI was exceeding 7.5 percent and economic growth was slowing because of deliberate Fed action to cool the economy. Economist Fred Kahn, who chaired President Jimmy Carter's inflation tax force, was asked if he believed we were headed toward a depression. Kahn and other senior officials had been warned not to use the d-word. Somehow, it was believed that saying "depression" would become a self-fulfilling prophecy. They didn't even want to say "recession," so a new euphemism was created. Kahn responded in congressional testimony: "We're in danger of having the worst banana in 45 years."

The really bad banana (or r-word, to be more specific) came later during the Reagan years, when Fed chair Paul Volcker hit the brakes long and hard and squeezed out inflation, along with employment growth. The unemployment rate hit 10.8 percent in late 1982. Kahn's bad banana forecast ended up being accurate.

Needless to say, Washington leaders have long been reluctant to call a spade a spade. But today, the no-no isn't depression or even recession. It's referring to unqualified inflation. No one in authority wants to admit that the dollars we hold are systematically losing their purchasing power. We are being quietly robbed by Washington's dollar-printing press, with politicians calling the shots. The presses are not operating without drivers.

Seemingly, it's okay for the Fed chair to recognize CPI heading north, but only if he qualifies the trip by calling it temporary. And while Washington analysts argue that COVID-19 disruptions are affecting just some key items, such as used cars and lumber—and that ports clogged with container ships waiting for workers, drivers, and trucks to be unloaded are the culprit—an analysis of the price movements in the July Consumer Spending Index, which is the Fed's preferred inflation measuring rod, shows 84 percent of included items rising.

The price increases are widespread, which suggests they are embedded. No matter how analysts choose to slice and dice the data, the answer is the same: The U.S. inflation rate calls for taking offsetting actions, such as avoiding direct distributions of stimulus or minimum family income dollars (though not harsh, invasive measures to cool off the economy). Let us not forget that inflation is not about rising prices. The rising price level is the result of an inflated money supply—all those trillions of stimulus dollars now out and chasing harder after goods and services.

So, what should our esteemed political leaders do? Gazing into a crystal ball and talking about things that may be transitory is what soothsayers and fortunetellers do. Just give the public the unvarnished story.

NEXT: FDA Approves an E-Cigarette for the First Time but Still Seems Bent on Banning the Flavors Former Smokers Overwhelmingly Prefer

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249 responses to “High Inflation Is Here To Stay

  1. I'm surprised we haven't pivoted to the Trump Economy yet.

    1. Bush, General; don't forget Bush.

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    2. Trump would have also caused inflation. He was increasing budget without cutting expenses and with cutting on the income side. However, for now, I can only say: let's go Brandon!

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  2. Re the picture, are woke still young-non-birthing-person-cotting Goya?

    1. Remember the Reason style guide; NO pictures that actually relate to the article.

      1. I don’t read the articles so I’m stuck on this quandary whether it is PC to buyGoya again.

        1. If you actually care what PC people think about you, it is too late.

          1. I’m not changing me based on it but I’m curious if the Goycott sunset.

            1. Goycott is when you refuse to buy pork or shellfish.

              1. Boycod is refusing to buy fish. Soycott is refusing to buy fake meat products.

                1. Poicott is racist against Samoans.

                  1. What is Epcott?

                    1. Refusal to get the epley maneuver.

                    2. An ideal society, as seen through the eyes of a 1980s prog.

                    3. And don’t forget the manicotti,
                      Italian women refusing to date men.

                    4. Boycotting like there's no tomorrow-land?

                    5. Best cut of vinyl records?

                    6. Boycotting, girlcotting, boybedding, girlbedding, LGBTbedding, it's all sex to me! If you show ANY preference for one over the others, ye are DISCRIMINATING!

                      (They do ALL cum after me, lusting after SQRL necklaces! It tires me out, at times... No peace, no quarter, for an old SQRL.)

                    7. SmegmaLung, this is NO way for you to earn yourself a SQRL necklace! NO SQRL necklace for YOU! BAD dog!

                    8. Groved one don the middle for the Reichsquirreler and he whiffed. But not like Biden whiff.

                    9. Admittedly I stole "SQRL necklace" from Chumby! Chumby is a fungi, a mushroom, or a fun-guy, or SOMETHING like that, it seems!

                      Give credit where credit is due, even if belatedly! Fungi, funnigi!

                    10. Refusing to provide underage girls for Bill Clinton to fuck?

    2. I hope so, I like having Goya in stock.

    3. The targeted market for Goya, Hispanics, never were boycotting Goya, so evidently, the Goya boycott was about as popular as the term "Latinx."

      (By the bye--or Bi- --the only places I ever heard or seen the word "Latinx" used was on some National Public Radio show and in McPaper. I would think a Transgendered person from Latin America would use the "-o" or "-a" depending on which Gender with which they identify, so no need to change a Centuries-old language anyway.)

    4. "The sleep of Reason creates monsters." --Francisco Goya. True in more reasons than the most obvious.

  3. I thought this inflation shit was just hype. However, when I went to buy beer yesterday a 12 oz can was about 40 cents more than it was before.

    when you fuck with my beer you’re fucking with me!

    1. When I go to the weed store later today and they jacked up the price there this is a full on crisis.

      I’m fortunate to be able to afford higher booze and weed bills, but many aren’t so lucky.

      1. And here I thought socialists cared about the living standards of the poor. Whatevs:

        1. Too bad they don’t give a Pulitzer for memes.

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        2. They care about the poor. They want all the lowly poor peasants to maintain a bare subsistence existence.

        3. Since when did libertarians care about the poor? As I’ve said: my theory is that you’ve gone soft. My portfolio has gone up by 32% this year. That’s more than 6.2, right?

      2. asshole flag X2

      3. Yeah, they’ve keep welfare benefits really high. So I’m sure you’re stoked.

        1. I don’t get welfare you traitor asshole

    2. So inflation even affects Milwaukee’s Best. Interesting.

      1. I haven’t drinking’ that since high school.

        There’s a lot of good beer where I live, so I don’t fuck around with cheap beer except the occasional coors light.

        1. Coors Light? But what about beer?

          1. Good one!

            I prefer IPAs and porters

            1. Goose Island IPA (and their Ten Hills) are two of the better. Dogfish Head is poser though 60-minute is decent. Silva Pale Ale is great but you can only get it in Romania.
              Samuel Smith is the only brewer that crafts a proper porter.

              1. Dogfish Head is as good as it gets, and you sir are a dog-faced pony soldier.

                1. Dogfish Head is for fancy lads.

                  1. I'll have a Samuel Jackson.

              2. Sip of Sunshine (Lawson's) is pretty good.

              3. "Goose Island IPA (and their Ten Hills) are two of the better."

                Man, IPA's aren't my favorite, but there are so many things to love about Goose Island. Prior to being sucked up by the borg, they were really well known for their farm beers- Saisons, Wild Ales and the like. My god they were magic....And normally impossible to find.

                Namaste from Dogfish Head was awesome.

              4. "Samuel Smith is the only brewer that crafts a proper porter."

                Agreed. Tadcaster is the gold standard of porters.

            2. "I prefer IPAs and porters"

              Of course you do.

              1. What do you drink?

                1. I like red ales, sours, and bourbon

                  1. What’s wrong with IPAs and porters?

                    There’s some red ales that are good.

              2. Or are you a pussy like Sevo who can’t handle booze?

      2. Do they even get beer in the backwater rural shithole you live in? Or do you have to get by on uncle Leroy’s moonshine?

        1. So you just drink whino bum piss to get your booze on? Isn’t there a whole village of them there in hipster high-crime shitholia?
          Some decent breweries here including Sebago (Frye’s Leap IPA) and Allagash (White). Shipyard isn’t that good but it is popular (Pumpkinghead spice seasonal is where they make bank).
          Not sure moonshine is popular. Some make blueberry wine

          1. Oregon beer>Maine beer.

            There’s several villages of ruffians here and yet people are still moving here.

            Despite the smears in the conservative media it’s still a great place to live. Beats rural Maine that’s for sure.

            1. If you mean higher pollution, congestion, taxes, impervious surfaces and crime, then yes your area has my area beat.

              1. There’s also plenty to do outdoors nearby which is the one reason to live in a rural shithole, so looks like even with all that we still got you beat.

                Also aren’t there a lot of Red Sox fans there? I couldn’t live around the most annoying fans in any sport.

                1. *Third most annoying. Utah Jazz fans and BYU fans are worse.

                2. Some of the parks there don’t have homeless bums littering the place all up? Sounds amazing.
                  Love hearing the owls at night. Coyotes howling. Had geese fly over the house at dusk. Last week saw a pair of bobcat running across the field But honking car horns, hipsters arguing over whose fixie is more ironic, open air sidewalk needle “exchanges” with the aroma of bum piss wafting through the night air is far superior.
                  Sportsball is opiate for the masses.

                  1. So you only watch baseball for the Dingers?

                    1. I don’t watch baseball. It is for the Bask In Reflected Glory crowd. Your team wins! Your life is the same. Your team loses to their rivals. Your life is still the same. There are other activities I’d rather be doing.

                    2. You sure make a lot of sports jokes for someone who doesn’t like sports

                    3. I understand them and the commentariat.

                    4. Ahh! I get it. YOURE A PHONY!!!

                    5. When did I claim to be a fan?

                    6. Okay.

                      I’m suspicious of someone like you

                  2. You can see those things about 30 minutes outside of Portland. The Cascades are much more scenic than the Appalachians. Hell the Coast Range is prettier than the hills you have back east.

                    There are plenty of parks without bums in them. Most people here aren’t hipsters. They’re normal people.

                    1. I don’t need to drive and hope to see something. Every day brings a new blessing. The rarities like moose and bear are great. Have a porcupine that visits the orchard daily. The deer are constantly there too. A pileated woodpecker lives in a tree across from the house. They have a unique cackle. No bums or folks wearing jackets two sizes too small.

            2. Oregon is a shithole .

              1. Where do you live?

                1. And why are Oregon forest products made in Canada?

                  1. Because we like to preserve our natural scenery instead of cutting it down.

                    1. An unmanaged forest is a tinderbox.

                    2. No we manage them. We just don’t cut them down as much as we used to.

                    3. Seems incongruent with no forestry products.

                    4. Are you a forester?

                    5. No. Though I manage my forest. Oregon’s chains cut well, hold an edge well and cost less that equal (and lesser) chains of other brands. Can’t speak to their bars.

                    6. There’s your problem. Managing a forest requires much more than getting drunk in a bar with rural assholes.

                    7. I wouldn’t know about getting drunk in a bar here. Or if Oregon chainsaw bars are decent.

                2. Oralgon is really a shithole though.

                3. asshole flag X7

                4. Why would it matter where I live? Oregon is still a shithole.

                  1. Because Oregon is probably better than whatever shithole you call home

                    1. Been there.
                      It’s not.

                    2. Well I’m sure you’re just jealous of how great it is. Also you won’t say what state you live in because you’re embarrassed by what a shithole it is.

                    3. He lives in Portland, Oregon. And yes, he is embarrassed by how much of a shithole it is.

                    4. If I was embarrassed why would I tell you where I live?

                      I could just as easily say I live in Newfoundland or Narnia

                    5. One man’s shithole is another man’s secondhand, digested pork sandwich.

                    6. One man’s rural Maine shithole is another man’s rural Maine shithole.

                    7. No needles, homeless villages, bum piss, traffic, high taxes or high crime. Can see why it disappoints you. And I believe we are fully vaccinated against hipsters. No scenesters either.

                    8. No Traffic, but do you have anywhere to go?

                      Thought not…

                    9. There are. But it is a haul to find a “cultured” place with Captain Crunch donuts, bum village trash heaps, stores that sell manual typewriters and sidewalks lined with needles.

              2. Portland is horrible. Didn’t used to be. The progtards have destroyed it. Martial law would be an improve,ent.

                1. Shut up traitor.

                2. It’s better than shithole Spokane

                  1. Spokan like a Portlandiass

                    1. Good one.

                      If you went to Spokane you’d understand how terrible the people there are.

                    2. Hear they are about one tenth as bad as Portlanders. So yeah, they sound awful.

                    3. Spokane is just a bunch of traitors like Patriot guy for the most part

          2. Allagash is a fine brewery.

      3. Even if it doesn't raise the price, they just dilute it with more horse piss. Small wonder in college it was called Milwaukee's Beast.

    3. I six-pack of Sweetwater IPA goes for $10.99 at my local store where I used to pay $5.49 for PBR.

      100% inflation!

      1. There’s 100% inflation for illicit drugs too. I used to pay 40$ for a gram of blow, but now I pay 80$ for 2 grams.

        1. You're not going to be able to afford to feed that kid chained up in your basement anymore, if your dealer is upping his prices like that. Are you going to have to feed it to your dogs?

          1. Why do you feel the need to lie about me?

            1. Because you have so little character and identity that it makes no difference? Or chances are it even makes you more alive?

            2. More alive. As opposed to your mom, that is.

              1. Good one!

            3. two flags for the asshole.

      2. "I six-pack of Sweetwater IPA goes for $10.99 at my local store where I used to pay $5.49 for PBR.
        100% inflation!"

        Liar turd hardest hit!
        turd lies; it's what he does. turd is a pathological liar, but entirely too stupid to understand that. Or that others are well familiar with it.
        If something turd posts is not a lie, it was a mistake. If turd posts numbers, they are lies or cherry-picked to be worthless.
        turd lies. It's what turd does.

        1. Sevo’s senile. It’s what he is.
          He was never too bright to begin with.
          Sevo’s a pussy. He can’t handle his booze.
          He has to go to meetings with other losers and whine about what pussies they are.
          This doesn’t rhyme and I don’t care.
          Sevo’s a senile piece of shit to be fair.

          1. I enjoy him, tbh.

    4. A quarter pounder with cheese and a large fries cost me 9.80 at McD's yesterday.

      1. Yeah I was remarking to the wife last week that it is now unusual for us to get out of a lunch for the two of us for less than $30. And I'm not talking fancy restaurant- I'm talking Poke or Ramen. Even a Jimmy Johns sub, chips and a drink is $15 with tax.

      2. Da da da-da da. Not lovin it.

        1. "You Deserve A Break Today!...Eat At Home!"

    5. I feel your pain. It's a real humanitarian crisis.

    6. Hi KARen!

      You buy beer one 12 oz can at a time?

      Explains a lot.

  4. Just pay everyone 50$/hr minimum wage, problem solved!

    - molly godiva

    1. If you can't afford to pay $50/hr you shouldn't be in business

      - also molly godiva

      1. Why can't I afford a loaf of bread with my $50/hr wage?

        -- molly godiva in 18 months.

        1. Why am I standing against this wall?
          Mollygodiva in 24 months.

          1. "..."
            - Mollygodiva in 24 Months and a day.

    2. I wish that was a parody.

  5. Uh no. The economy is wildly complex and we are still dealing with the ramifications of covid. A few months of higher then normal inflation does not prove anything. It may indicate, or lead one to be concerned, but not prove to any degree.

    1. To be sure, this information is no threat to what you want to believe.

    2. It isn’t happening.
      It is happening but it isn’t what you think.
      No that it is here, deal with it.

      1. Is that an inflated Haiku?

    3. The HYPER-INFLATION! pants shitters have been wrong since Bernanke jump-started QE back in 2009.

      Meanwhile interest rates and gold prices haven't budged.

      In a year I will be here to tell them 'I told you so' again just like I did back in 2009 as "shrike".

      1. That's great! I'm glad you got a prediction right over a decade ago.

        The guy who introduced me to never told me about that. He did, however, tell me you literally spent months guaranteeing Jeb Bush would be the 2016 Republican nominee. Something about how the "GOP bigshits" always got their way. Oops!


        1. Yes, I confess.

          I really thought that the bigshits in the GOP would find a way to keep the riff-raff from letting Trump get their nomination.

          Jeb had the right pedigree but Shit Happens.

          1. "but Shit Happens"

            As a buttplug, chances are you know aaaaall about that.

          2. "Shit happens"

            Is that the same as predicting yesterday that Inflation would come in at 2%? Didn't SPB do that too? Or am i misremembering?

      2. Didn't you just state yesterday that inflation was currently stable at 2%?

        1. Over a full year.

          Core inflation was 4% last month. That will be the peak. There will be a bunch of 1s and 2s in the near future.

          1. "the September Consumer Price Index (CPI) rose by 5.4 percent on a year-over-year basis"

            1. Core was 4%. Your CPI includes energy.

              However, excluding volatile food and energy prices, the CPI increased 0.2% on the month and 4% year over year, against respective estimates for 0.3% and 4%.


              1. Why is social security cola up 5.6% for next year?

              2. and we all know energy will get much cheaper when we shut down all the nuclear plants and fracking and pipelines and coal mining, and start mandating electric cars and lawnmowers and leafblowers and home appliances.

              3. turd lies; it’s what he does. turd is a pathological liar, but entirely too stupid to understand that. Or that others are well familiar with it.
                If something turd posts is not a lie, it was a mistake. If turd posts numbers, they are lies or cherry-picked to be worthless.
                turd lies. It’s what turd does.

              4. Oh, so you don't eat, and don't drive a car? = ...excluding volatile food and energy prices...the CPI increased 0.2% on the month and 4% year over year, against respective estimates for 0.3% and 4%

              5. Because energy prices don't affect anything and will drop?

                People really don't get it that energy drives the economy. Cheap energy helps you grow. Energy will not be cheaper with all the bans going on.

                As for food, yeah people won't notice qt all the food is more pricey. It's a myth.

                Hey you do you.

              6. "Core was 4%"

       admit that you were full of shit when you claimed 2%?

                Come on can do it..."I was wrong" isn't hard.

              7. Excluding food and energy from the Consumer Price Index would be like the urban legend of Marion Barry excluding murder from the D.C. crime rate and saying D.C. was a peaceful place. Only the people doing that with the CPI are that stupid in real life.

                (In all fairness, the urban legend about Marion Barry was so believable because he really is that stupid too.)

      3. Funny how when a central bank with unlimited buying authority buys up 1.44 trillion in Treasury and mortgage debt every year, interest rates stay low....

      4. It didn’t happen because when Bernanke did it the economy was teetering on the brink of a debt deflationary period (aka, another depression) as the last of Greenspan’s serial bubbles deflated.

        That’s no longer the case. We’ve lived the obligatory decade and a half (give or take) that it usually takes to work off one of those things. A lot more risk that it’ll stick this time.

    4. If Trump were still president (or Bush) Molly would be screaming about how this inflation proved that they were messing up.

      Between zero interest rates (again) and that last stimulus package we’ve dramatically overstimulated things. And the fix for this to Molly and her team is “hair of the dog that bit me”.

      Unlike her, I’m old enough to remember the 70s. That sucked.

    5. How was everything last year trumps fault and nothing this year is bidens fault?

      1. Don't worry, it'll be back to being Trump's fault before the year is out.

        1. It's still Trump's fault, wdym? Rent free and pulling the switches.

    6. Why are we having any inflation during COVID? COVID stagnated the economy. How can you have inflation and stagnation at the same time? There is no such situation in the history of economics.

      1. GDP is actually above pre-pandemic high now, so I am not sure I would call it stagnation.

        The pandemic caused a weird type of recession. Usually in recessions, demand goes down, while the capacity of the economy remains stable. In the pandemic recession though, supply went down (due to restrictions and people choosing to leave the labor force) and demand, if anything, went up.

        The problem is that you are supposed to solve supply shocks differently from demand shocks, but we seem to be following the demand shock playbook.

      2. Stagnation plus over 10% inflation happened for most of the 1970's. All took was enough government intervention - and the Regressives behind Biden want much more of that.

    7. ^ This guy gets it. Methinks the columnist doth protest too much.

    8. Inflation may indicate, or may lead one to be concerned about inflation, but does not prove inflation to any degree

      This isn't even mental gymnastics anymore.

    9. "Uh no. The economy is wildly complex and we are still dealing with the ramifications of covid"

      No, shit-fir-brains, the economy is suffering from having been converted to a planned economy as a result of chicken-little lefty piles of shit like you.

    10. Ostriches stick their head in the ground too.

      Are you an ostrich?

  6. There's no inflation, you paranoid loon
    These anecdotal accounts don't prove anything <---- You Are Here
    Why are you playing the blame game about our inflation crisis?

    1. I guess Chumby beat me to it

    2. Actually we are past that. Inflation is now good.

      Bloomberg Opinion
      A higher rate of inflation, and correspondingly higher wage growth, could be a net positive for the economy

      1. I...that is...I mean...WTF?

        1. They think, and are correct, that democrats are stupid.

      2. More money is good. Right?

      3. Actually we are past that. Inflation is now good.
        I predicted that was coming. I never wrote it down anywhere so I'll never be able to collect a prize, but that was one of two predictions I made. I predicted that all the new wealth distribution would cause inflation, even though, at the time, the "experts" were telling us that everything was in hand and there wouldn't be any inflation.

        Then the inflation began and I predicted that the "experts" would tell us it was good. Now they're doing it.

        I now predict that inflation won't stop, at least under Biden. In reality policy makers have two choices, 1) stop the Marxist wealth redistribution (which is only accelerating) or 2) price controls, which will result in supply scarcity. I don't think that option 2 will get much consideration, even though it was employed in east bloc countries. The *usual* pattern for Marxist regimes is just more and more inflation.

        Note that I do not think that Marxists are stupid, as some commenters are saying (or implying). They certainly have more street smarts than their opposition (libertarian or not).

        1. You forgot option 3: Nationalize (either directly or through regulatory puppetry) key industries. That is essentially what Chavez did when his inflationary nonsense was spiking the cost of oil.

        2. It wasn't just the wealth distribution, it was the crushing of productivity that sealed the deal.

  7. Better yet, it's proof that we should avoid adding fuel to the fire, even if it means cutting back on President Joe Biden's multi-trillion-dollar American Rescue Plan.

    No, the plan is to throw a stadium full of $100 bills at the problem per Democrat SOP. Any other questions?

    Next question, or are we finished here?

    1. Not at the problem - at their friends.

      1. Thank you for the correction. Those dollars are doled out based on politics. THAT'S THE WHOLE POINT!

        1. I am always pissed off when I fail to catch some of that helicopter money. The mailed checks are fine, but I want some of the real graft now that I have investment money. I missed out on the big Electric Car subsidies that the rich people got for their luxury cars and HOV-passes. I may just make the Solar Panel subsidies that my neighbor is using to get his house re-roofed (fun fact: if you need a new roof because it is old- er, I mean because the solar panel installer says you need one, a significant portion is deductible!).

          I am really looking at the CRP subsidies. Buy some land in the mountains, build your hunting lodge, and then convert the surrounding 1000 acres of "working ranch land" into conservation plots! Now the government will pay you for your lordly mountain estate. You can even double dip, and sell carbon sequestration credits for that land! My next prediction? Subsidies for private jets, since masking, no alcohol and security theater rules have made travel so droll.

          Isn't saving the earth fun? It has done wonders to ensure that the affluent enjoy the elite and privileged lifestyle to which they have become accustomed.

  8. Reason wanted Biden, so fuck off.

  9. BRUCE YANDLE is a distinguished adjunct fellow with the Mercatus Center at George Mason University

    A "sound money" dude talking his book.

    Like Ron Paul he has probably predicted 47 out of the last three recessions.

    1. turd lies; it’s what he does. turd is a pathological liar, but entirely too stupid to understand that. Or that others are well familiar with it.
      If something turd posts is not a lie, it was a mistake. If turd posts numbers, they are lies or cherry-picked to be worthless.
      turd lies. It’s what turd does.

    2. What happened to your original account?

      1. Too much kidding around.

  10. And here we have an article that has basically no evidence to support its assertion. Meanwhile, the transitory people can point to cars as a large part of that inflation and that's due to lack of chips (which won't catch up because it's not as easy to spin up a factory for the chips which are primarily older and only used in automotive applications- a place where you don't want the newest chips that might be prone to weird restarts and bugs for obvious reasons.)

    If you don't like the bills going through Congress then fine, state as such. But don't use absolute bullshit like this article to justify cutting them on something you can't even give hard evidence that this inflation is here to stay.

    Another joke from the Reason writers.

    1. Still not a good reason to add $350 billion a year (x 10 years) to expenditures.

      In 2020 we had two big stimulus programs that were both all at once.

      Then Biden got one in this year.

      1. turd lies; it’s what he does. turd is a pathological liar, but entirely too stupid to understand that. Or that others are well familiar with it.
        If something turd posts is not a lie, it was a mistake. If turd posts numbers, they are lies or cherry-picked to be worthless.
        turd lies. It’s what turd does.

    2. Except for all of the inflationary data that currently exists, they haven't proven anything.

    3. How many months at 5+ percent inflation before you consider it a real problem?

      1. For a Dem, never. For a Repub, 1 month.

      2. This is what bugs me about the whole "Transitory" bullshit:

        They are saying "transitory" as if it is here one day and gone another. But we are talking about a transitory RATE. It is a transitory Growth in prices. So maybe, MAYBE, the inflation rate is Transitory, but so what? Even after the rate slows, you live on paying 5% - 10% more for everything you need to survive. The shredding of your paycheck may have been transitory, but you still have less take home money.

        But raspberry and SPB don't care. They will look at poor people watching their savings erode and claim "Transitory!!!11!!" and smile because to them it is better to run cover for Team Blue than to give a shit about the poor people being fucked by this regime.

    4. Social security cola will be 5.6% for next year.

      1. That's one Helluva expensive drink.

    5. Actually, the disturbing thing is that while that was true the beginning of the year, inflation is now broadening to more of the economy.

      The measures for median CPI and 16% trimmed mean CPI are increasing, while CPI itself is stabilizing. That indicates that inflation is getting less driven by a few outliers.

  11. I dunno what you guys are talking about, money is up 380% since election day.

    1. Gotta match that 380% voter turn-out.

  12. Oh, "they" are doing something about inflation -- they're making it much worse.

    Yeah, the economy is very complex, and COVID lockdowns messed up supply chains and companies are adjusting to the new reality, etc. But dump 2 trillion bucks in free money (free in the short term, with the Fed cheating on interest rates) on the economy (last year and this year in extra-budgetary bailouts and stimulus), and prices are going to go up. Now they want to dump 4.6 trillion more on top of that.

    1. Runaway inflation plus higher taxes for the win!

      1. Inflation not only is a hidden tax, but it means higher rates of other taxes. If it raises the overall prices of goods and services, that includes purchases by different levels of Government too, such as used to perform all it's functions, both legitimate and illegitimate.

        Fuck Be Unto Joe Biden and Janet Yellen!

    2. High Inflation is always Government stealing credit card debt because lets face it. Growth happens and if the growth isn't represented by a strong USD someone is stealing up all the growth and then some.

    3. And retards like Molly, who were screaming about corporate profits and the stonk market under trump (and even Obama with occupy wall street) are too dumb to understand that all this money printing jacks up our debt. The more debt we have, the less incentive the fed has to raise rates because it would cripple us with interest on the national debt. The longer the fed goes without raising rates, the less incentive banks and anyone else has to raise their rates. The longer that goes, the more savings/investments/retirement accounts are shifted into products relying on the stock market or commodity markets to get a better return on the money.

      That just means all our retirement funds and savings are being directed into the very corporations and stock market these idiots like to scream about. Instead of being able to find savings accounts or cds like our grandparents that actually gave worthwhile stable returns and avoided much of the risk involved in the stock market.

      1. That just means all our retirement funds and savings are being directed into the very corporations and stock market these idiots like to scream about. Instead of being able to find savings accounts or cds like our grandparents that actually gave worthwhile stable returns and avoided much of the risk involved in the stock market.
        Shit, somebody might even think that this is on purpose so the financial system wins coming and going!

        1. Man if I were back in my early 20s- where all of my net worth was really based on my paycheck- I'd be PISSED. Today, my net worth is all in my house and brokerage accounts. Inflation really, honestly doesn't impact me as much.

          This is what turns the young into rabid commies. They don't see the cycle Dizzle describes at work, they just see old rich people staying rich while Bernie Sanders gives them an easy goat to scape.

          1. And while Bernie isn't doing bad, either,

        2. EVERYTHING "liberals" do will accomplish the opposite of what they claim to intend. That's been too consistent for too long to still believe they don't know it.

  13. In 1920 1-oz of Gold was worth $20.
    In 2020 1-oz of Gold was worth $1800.

    "What inflation? Where? You're all just crazy..", screams the retards.

    1. In 1970 a new non-luxury sedan cost $2,000 - $3,000, depending on the options and brand. In 2019, a much smaller basic car cost around $20,000. And the insurance on a car is out of sight!

      I just paid more for shoe polish than my mother paid for a pair of shoes when I was a kid.

      In 1965, my mother would give me a $1 bill to bike down to the corner store and get a gallon of milk and a loaf of bread - and I'd better bring back the change. By the time Nixon settled into office in 1969, the milk alone was probably over $1. That's just what happened when Lying Bastard Johnson ran up the deficits to pay for welfare and a little war at the same time.

      Now the bread is at least $2.50 unless you hunt for where they hid the store brand, even that's around $1.50, and just a quart of milk is close to $2.00. And I just paid almost $7 for a bag of oranges, nearly double what it was only 18 months ago.

  14. Why Biden was allowed to stay in any elected office is a mystery we will have to live with....he on the other hand id a full blown potus failure, policy, exec, mandate...acts of total incompetence and the result is loss of creds, impositions, taxes and cost upswings on all of America for no good reason other than his want of socialism....His ineptitude is expensive, energy, unneeded taxation, debt disparagement, national security, border sovereignty abuse aka dereliction of duty, national embarrassment.....your quality of life lowered, denial of representation, citizenship cheapened, corruption/crime increase and security denials, peaceful dissent denied, corrupted elections upheld..ect, ect....._UCK JOE BIDEN....ECT, ECT.....

    1. Fuck Joe Biden

  15. The bending over backwards to pretend that there isn't inflation and that if there is, it's not big deal is off the charts at this point. It really is amazing how tribalism is so powerful that all consistency, rational thought, and base principles just go out the window in the effort to defend one's political team.

    The current inflation issue was completely created by horrendous policy followed by the Biden administration. Yet, most on the left simply say "nuh uh."

  16. The breakfast "special" (2 eggs, bacon, hashbrowns and toast) is now $10.99 at my local cafe. It was $7.99 last year. Granted, I lived in California where gas is now $4.49/gal for 87 octane.

  17. "High Inflation Is Here To Stay"

    turd hardest hit!
    Hey, we allowed the Newsoms of the world to take over the economy as a result of a flu; we're getting what we deserve.
    Planned economies do not work.

  18. "...2 percent—the Fed's traditional goal for inflation—has been dismissed as temporary or transitory..."

    But of COURSE. Recessions always transition to something else. Sometimes they transitions to Depressions. And of COURSE they are "temporary." They seldom last more than a decade.....


    1. And as I note above, describing rates as transitory is pretty fucking stupid. When you drive off a cliff, your acceleration is no doubt transitory as well...eventually your rate of acceleration will stop (either by reaching terminal velocity or the ground)- but in the grand scheme of things, that shit don't matter.

      Someone's paycheck is 5% lower than it was last year. The fact that it *may* not go to 10% lower is ok, but you can't ignore that you have given them a pay cut that they have to live with until they can get a raise.

  19. I reject the premise of the headline outright. "Malaise forever", like the Jimmy Carter statue in that Simpsons episode had chiseled on it, doesn't have to be our fate, any more than it did the last time we were going through this kind of nonsense under Jimmah himself.

    Getting ourselves back on the right course won't be easy or completely painless, but it's absolutely possible, if we want to.

  20. Unlike the 2009 stimulus spending, a lot of the pandemic bailout money went straight to the American people. A lot of people ended up essentially getting free money, and given the ease of ordering things online, a lot of that money spent in a short amount of time.

    Inflation is a basic and intuitive concept. And exit plans aren't just for occupations. At a certain point, the government has to say "OK, we had to blow in gazillions of money to prop up the economy, but when point X comes we have to try to return to some level of normalcy". The Biden admin doesn't understand either.

    I get a laugh out of people who says "Its about the living wages" when they hear about labor shortages. It's not just mcdonalds employees who are quitting, but also factory and healthcare workers. If you constantly tell people to live in fear and must take all levels of safety precautions, to the point of excluding members of society, then people will act out in fear.

    Most people aren't afraid of the virus in a vacuum. But society drilled the fear of human contact into their brains. Lots of people will be reluctant to take support retail jobs where most job growth occurs.

    1. All good points. I'm not afraid of a virus- rather this year has made me weary of the common man. I am afraid to spend more than 1 hour talking to a person at one time, for fear that I might say something that gets me canceled, like "Happy Columbus day!"

      1. All zombie apocalypse genre. The squid games which I like so no spoilers please. They all hinge on that same point.

        The bigger danger is from the survivors.

        From the Zombie Survival Handbook.
        “ a blade never needs reloading “

        Good advice I’m keeping that one and it does not apply only in combat arms.

    2. I think it's funny you don't realize all of this is intentional.

  21. The Fed and the Biden administration are flat-out lying to us about the inflation we're experiencing now. It's not due supply shortages nor is it transitory. It is primarily due to increasing consumer demand caused by excessive federal stimuli and monetary creation. Government-imposed lockdowns and clean energy policies constraining output have exacerbated price increases. We have a consumption boom and distortions in the structure of production. It's a lot like the conditions that preceeded the "Great Recession" of 2007-2009.

    1. If you want the pandemic to end, then tell some of your Republican friends to take the goddamn vaccine.

      Every problem that's happening due to the pandemic is the fault of Republicans who for some reason don't want it to end.

      1. Does it require classes for you to be that damned stupid.

      2. Someone inform Tony that blacks and hispanics do not usually vote Republican. The demographics of the unvaxxed are undeniable.

        Hells Up Harris got the ball rolling when she said, on national television, and I quote, "If Donald Trump tells us to take it, I'm not taking it." Of course, the DNC sold her as a "black woman" to their ignorant base soo...

        Reality isn't the coolest place but it sure beats the fantasyland in your head.

        There's plenty of kooks on the right with their conspiracy theories but those are slim numbers compared to the millions of blacks that say they don't trust government (they shouldn't) and won't get stuck.

  22. " a spade a spade."


  23. Too many dollars chasing too few goods. It isn't difficult math. The options are to curb spending, which doesn't interest politicians or the banking system that reaps interest on money lent into circulation, or to raise taxes, which takes money out of circulation. They can raise taxes on land, capital, or labor.

    Taxing land values is extremely efficient (nearly impossible to evade, no deadweight loss, highly progressive in effect, and the most justifiable from either a natural-rights or consequentialist liberal perspective), but landed interests and natural resource speculators are mega-wealthy and politically powerful. Taxing capital curbs economic growth because it has the most deadweight loss, along with decreasing the money supply, which is counter-inflationary, but corporate business interests fund their campaigns and make their worlds go 'round. Taxing labor is the most regressive method, but labor unions don't seem to mind and aren't going to turn on Democrats, labor activists seldom put two and two together, and politicians don't feel particularly threatened by unorganized labor. So, expect income taxes and payroll taxes to increase most of all.

    1. Learn about how the world has changed since the 18th Century. In the modern world, the main wealth isn't in land. The modern rich aren't titled lords with vast estates, but businessmen with huge stock and bond portfolios. When you tax land, you tax mostly the 1% of the population that supplies all of us with food; you aren't taxing the richest, and you won't get much compared to the federal budget before food prices skyrocket.

  24. If they told us the unvarnished truth, it is that they want to keep spending this much and more, and they have plans for our economic life, and they expect obedience. And if we the people were as obedient as they want, we would demand higher taxes, and would alter our lives to put collective priorities like reparations and climate change ahead of our own (selfish) ambitions. Right?

    1. Yep; The weather is still changing. Didn't know it was "selfish" to notice but I'm sure if it's not selfish it's at least racist... lol.. 🙂

    2. I need to get paid for your idiocy.

      A2 + B2 = 0, obvi.

  25. "Call a spade a spade."

    What you want is for yet more flapping heads in the media and politicians to incant the word "inflation" on full knowledge that the rubes they are scaring have no idea what they're talking about. It's just another CRT now. Boo!

    I don't know about you, but the prices of some the goods I've been buying went up because of reduced supply and increased demand during the pandemic, and naturally has been good-specific.

    So the price level is up to some degree because of what the global economy is actually doing, but maybe some is due to monetary inflation. You must then ask two questions: is that monetary inflation bad for some reason, and would we be better off without it?

    If your stimmy covers the price increase of goods, then roughly speaking it's a wash, which means it did its job, and since there is no more stimmy, any price increase due only to it should go away.

    Other big Democratic government programs, at least if the progressives got their wish, would cost net zero since they'd simply raise taxes commensurate with the extra spending. That may not be the case if the fiscal conservatives get their way, ironically. And it's certainly not the case when Republicans enact their big programs and, heaven forbid, don't tax anyone to pay for them.

    Given that you object to the programs on philosophical grounds, I don't really want to hear your scare stories about abstract economic boogiemonsters. You guys have never been empirically right with any economic claim. And you don't even care that much, because your goal isn't to be right on economics, it's to enact your political program by suckering people into falling for them. Not on their merits, because those are shit, but because we simply have no choice.

    1. Summary
      ...If we do the Indian Rain Dance free resources fall from sky 🙂

      1. It's literally just addition and subtraction.

        1. More spending doesn't mean more productivity. So if the wealthy are taxed more, and the government spends money they would otherwise be sitting on, that will just raise consumer prices, and the tax on the wealthy becomes a tax on us all. The situation with corporate taxes is similar. Some of the tax increase will go into price increases and labour force reductions since the tax is nothing more than a cost to them.

          The argument that parent's will be free to work if the government pays for day care is rediculous. Single mother's on welfare don't want to work. Other parents already pay for their own day care. If the government gives them money, that's just a cash injection into the economy. Once again, that spells more inflation.

          Almost all socialism creates inflationary pressure. The government can suppress it with interest rates or cost controls, but those create misery in a different way, and the government can't afford high interest rates because of it's debt.

          Anyone who cares about the welfare of the middle class should not support Biden's policies, but I believe that those on the top of the totem pole want the middle class destroyed.

          People who don't want the ultra-rich grabbing more of the pie should be supportive of a strong middle class, which is the only thing that can serve as a counterweight. A strong middle class requires low inflation and a healthy private sector.

          1. "Single mother’s on welfare don’t want to work."

            Citation needed. More than that one, because this sounds like a bunch of tired, 90s-era ranting about hypothetical people not living up to your moral standards, which, and I don't mean to be a libertarian, shouldn't really be government's business.

            The country has the economic capacity it has. That capacity can be exploited by the private and public sectors. What necessary things the private sector does not provide, we rely on the public sector for. Even you believe this. Capitalism is a meaningless concept without a host of government choices and regulations (like intellectual property rights protection).

            One of those necessary components of any capitalist system is taxing the rich. It's the only way it is known to work. Adam Smith knew this (he proposed a whole lot of redistributive policy libertarians now dogmatically reject).

            You tax the rich so that they do not waste economic capacity on fleets of yachts and space dildos when it could be better used feeding the poor.

            If there are people flying dildos into space, it means, among other things, that government has chosen to prioritize space dildos over feeding children. That's the rich doing what you said it would do: using their wealth to make society better, based on their idea of better.

        2. Subtraction, yes. I agree.

          Subtracting capital from the productive portion of society to hand out to the non-productive portion is most definitely subtraction.

          You're standing in a bucket and trying to lift it by the handle. How's that workin?

          1. You're just saying it's bad to tax the rich and bad to provide services to the poor. I don't agree with you, because I'm not a sociopath. Thanks for sharing.

            1. There's so much wrong with your statement that I don't have time to cover it all. Government wasn't empowered to wipe your ass and hand you another sandwich.

              "... that to secure these rights, governments are instituted among men" might be a good place for you to begin your education.

              Apparently, in your mind, not being too hungover to get up and go to work in the morning makes you "rich".

              Hint: the bottom half pay almost zero in net taxation to DC. The top half pays for all of your freeshit from the feds so STFU or say "thank you" to those of us that work for a living.


              1. Government is empowered to do whatever the people who control it want it to do. It's called freedom.

                I prefer that Puritanical hypocrites, who use government for all their own purposes, not tell poor people that their big problem is that they just don't try hard enough, as if lecturing and being a snob ever solved any social problem.

                But since we get an equal say in what government is empowered to do, you're entitled to your stupid beliefs.

  26. You will own nothing, and like it.

    1. You will own nothing and you better like it.

      Build back better like it.

      1. Fuck Joe Biden

        1. Fuck Joe Biden, and all leftists

  27. If I understand correctly. The Critical shortage of workers at every level of the supply chain resulting in bottle necks at the nations ports. Shipping Containers not where they should be among other things.

  28. We can't treat this as a normal situation with sustained high inflation. The number of jobs available is not causing the labor participation rate to increase. That is so extraordinary.

    If you remember back in the period of 1997 to 2000, jobs were created at a very high rate, and labor participation was at an all-time high. Alan Greenspan cranked up interest rates, because wages increased at high rates (either to keep workers in place or or lure new hires from other positions), which was part of the cause for the recession of 2000-02.

    Jim Cramer of CNBC has said that the delta variant has caused a lot of Baby Boomers to retire or to not seek work after a lay-off. A lot of people ages 57 to 75 have decided they are done working, because they don't want to risk contracting Covid.

    A lot of other people have been reluctant to look for work, because they have children too young for Covid shots, or they care for elderly parents and other relatives for who a break-through case of Covid could be very severe.

    Once we get on the backside of the delta variant, the Covid vaccine gets approved for children ages 5 to 11, and Merck's Covid drug gets approved, I think we will see a lot of people return to the labor force.

    As people return to the workforce, the upward pressure on wages will ease.

    But, it is true that when the media starts throwing out the word "recession," it can become a self-fulfilling prophecy. If people think that bad economic times are ahead, they reduce spending, from restaurants and movies to new cars and home remodeling. That leads to lay-offs and plant closures.

    If inflation were truly here for an extended time, you would see people buying large items now, out of fear that waiting would mean higher prices. I remember in the 1970s my parents pushing up large purchases, out of fear that waiting until a large purchase was scheduled would mean a higher cost.

    People aren't doing that, in part because they are hesitant to go shopping, whether for an appliance, furniture, electronics, etc.

    1. Lol

      This is what leftists actually believe

    2. Are people not buying large items now? Real Estate is in a desperately competitive market along with used and new cars. Shortly after the announcement of the expanded unemployment benefits last year I RAN to the nearest dealership and dumped my liquid cash into a vehicle I needed in fear of a currency devaluation. It ended up being an incredibly fortuitous decision, as that vehicle has now increased in price 10-25% and cannot even be found on the new market any longer.

      1. People are having trouble buying cars now, because the auto companies can't get the electronic parts to make them; there's no reason to think they couldn't sell as many or more cars as before COVID if they had enough to sell. And every day, realtors e-mail and call me to ask if I would consider selling my house - that I've only been in for 3 years and plan to die in. I might make a good profit, but I wouldn't like living in a tent through a Michigan winter...

  29. Who cares? No more mean tweets, right reason?

    1. Fuck Joe Biden.

    2. Mean tweets and violent insurrection and treason and incompetence and a global pandemic and an ocean of lies and depravity.

      Only Trump supporters ever complained about his tweets.

  30. How about it never Trumpers? How's that biden vote working outTrumper? What was a bleating brag has become complete silence.

  31. "Economist Fred Kahn, who chaired President Jimmy Carter's inflation tax force,"

    Tax force? Please tell me that's a typo.

    1. Look up Alfred E. Kahn in Wikipedia. It's not the correct job title for his job in the Carter administration; he was "Chairman of the Council on Wage and Price Stability", AKA "inflation czar". I don't know why Bruce Yandle thinks that is about taxes, except that the only ways to reduce inflation are raising taxes and cutting spending, and Carter wasn't going to cut spending.

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