While inflation has been running at an annualised rate of 3.6% over the past three months, higher than the Fed’s target 2%, said Brett Hammond, senior economist at TIAA-CREF, “in order to get the economy moving again, a little inflation isn’t a bad thing”.
If Keynesianism is true, you are not supposed to have rising inflation and unemployment at the same time. It is only moderate stagflation, but it is rising, and shows every sign that it will go on rising.
Wages might be sticky, but that doesn’t mean they are fixed. At some point, aggregate supply will have to be blamed rather than demand. That is, even if the Fed should’ve inflated in 2008, at some point our problems will have to be blamed on regime uncertainty, the health care minimum wage, too regulated to fail etc.
“in order to get the economy moving again, a little stealing from the provident in favour of the improvident isn’t a bad thing.”
Uhhh….haha….what?
Oh, but many businesses need debt to get started, and cheap debt lets them start, right? No, cheap debt means a ventures unprofitable in wealth terms is profitable in monetary terms, creating heat and light through a wealth-burning furnace.
You have to wonder how many times a theory has to fail before the Left gives up on it. Has this stuff EVER worked? Of course, Communism is even worse, and a lot of these jokers still believe in that.