this post 2021 inflation obsession has really baffled me. first, there were clear non mv=p reasons why inflation rose … excess demand in supply constrained industries. that was obvious, yet completely missed by the public. second, I fear the public has lost its ability to follow one of Economics oldest principals: SUBSTITUTION. If eggs are more expensive b/c of Bird Flu, have an English Muffin. If natural gas is expensive, put on a sweater! It gas is expensive, walk or ride a bike (when you can). We are weak on the margins. My mom was a master substituter, and I grew up with NJ friends whose parents closed off 40% of their house in the winter. Inflation is back to 2-3% and the public continues to whine…
"Just put on a sweater" doomed Jimmy Carter...it would take a brave Democrat to suggest it again! We both grew up in the 1970's - that was closer to Great Depression than the 1970's are to us. So, culturally I think we almost certainly were tougher, more resilient, etc than now based on the history that formed people like your Mom relative to...well people like us.
this post 2021 inflation obsession has really baffled me. first, there were clear non mv=p reasons why inflation rose … excess demand in supply constrained industries. that was obvious, yet completely missed by the public. second, I fear the public has lost its ability to follow one of Economics oldest principals: SUBSTITUTION. If eggs are more expensive b/c of Bird Flu, have an English Muffin. If natural gas is expensive, put on a sweater! It gas is expensive, walk or ride a bike (when you can). We are weak on the margins. My mom was a master substituter, and I grew up with NJ friends whose parents closed off 40% of their house in the winter. Inflation is back to 2-3% and the public continues to whine…
"Just put on a sweater" doomed Jimmy Carter...it would take a brave Democrat to suggest it again! We both grew up in the 1970's - that was closer to Great Depression than the 1970's are to us. So, culturally I think we almost certainly were tougher, more resilient, etc than now based on the history that formed people like your Mom relative to...well people like us.
don’t overlook the substitution factor … it’s a real weakness in our society … only a severe crisis will alter it … The Fourth Turning is here