Everyone seems to be worried about inflation all of a sudden. I’m skeptical. First I don’t really think 5% or 6% inflation is even a problem. Well, not for most Americans anyway. Inflation is bad for people with cash and actually good for people with debt. If you have a debt, including a mortgage, then inflation is your friend.
The job market is also suddenly hot. Many people near retirement seem to be retiring early, and sadly about a million Americans have died from COVID-19. Add in the folks who have been disabled by long COVID and there is certainly a hole in the labor market. I have even been able to personally witness some hiring managers and H.R. people flailing in this new environment. Workers are picking their jobs, instead of companies getting to pick their workers. It almost makes me want to go out and apply for jobs, just to torment those who used to torment me.
Of course this sort of thing is “bad for business” (in other words “good for workers”). An old Class Warrior like Alan Greenspan would have shut this all down by now, jacked up interest rates, and had Americans begging for a job, like in the good old days. We will see how long the assault of the Inflationistas can hold out. A good read from an otherwise neutral party, which I confess, I am not.