A stopped clock is because it always says the same thing, and twice a day the hours and minutes glide past that point. But a clock may be slow, or fast, or simply running from the wrong starting point. In that case, it might not be right ever.
So it has been with the establishment media and many economists when it comes to inflation. When Donald Trump imposed tariffs on steel, aluminum, and imports from China, there was a seemingly unending number of articles, studies, and essays decrying the inflation that was sure to "squeeze the American consumer." We were told the price of televisions, cars, computers, and appliances would soar. When nothing of the sort happened—prices of many things, particularly televisions, fell after the tariffs were imposed—it still took years before the Very Smart People admitted they had been very wrong.
Fast-forward to this year. This time, the establishment went the opposite way.
Economists assured us that inflation would stay subdued. And then they said it would be "transitory," as Fed Chairman Jerome Powell memorably put it. Janet Yellen soon adopted the word as her own. Joe Biden told us that no "serious" economist worried about inflation becoming unchecked.
We suppose some progress has been made. Instead of being wrong for years, this time the establishment caught on to its error after only nine or ten months. That's likely because the political costs of inflation were mounted. As the pollsters at Gallup said Thursday, 45 percent of American households say their financial situation has been hurt by inflation. Among households with annual incomes lower than $40,000, that number jumps to 71 percent. That's an untenable position for any politician but especially for one that considers himself progressive and ran promising to reduce the costs of living for middle and lower-income Americans.
~~Alex Marlow & John Carney
Breitbart News Network