KALAMAZOO, MI (WHTC-AM/FM) – Inflation quickened at its fastest clip since 2008, according to numbers released on Wednesday (May 12, 2021).
The Consumer Price Index spiked 4.2% from a year ago, six-tenths of a percent higher than expected. It fueled inflation fears among investors on Wall Street, with drops on all three major indices.
Dr. Brian Long, Director of Supply Management Research at Grand Valley State University, says that economic initiatives, such as “Whip Inflation Now” during the Gerald Ford Administration, are just ancient history to a majority of consumers today.
“People can stop inflation by just saying, ‘I’m just not going to buy that new television’ or ‘I’m not going to pay that much,’” Long said on “WHTC Morning News” during his monthly appearance on Wednesday. “For most of the things that consumers buy, there is what they call ‘discretion.’ They don’t have to buy them.”
Long added that, if today’s consumers start assuming that they will have to pay more for goods and services, as consumers had in the 1970’s and 80’s, “now we’ve got trouble.”
I’m not blaming the good doctor, but the headline and this article don’t match. The good doctor absolutely did not weigh in on whether we should be worried about inflation.
Which we absolutely should be. There are now an extra 6 trillion+ dollars chasing not even the same number of goods, but LESS goods than there were 18 months ago. Even if we ignore the insanity of overpaying people to not work, and the reduced productivity associated with that, our supply chain is utterly demolished to the point where inputs are virtually unsourcable at any price.
Then, if THAT wasn’t enough, our government is clearly playing games with the inflation number. 4.2%? That is hilariously false. Any economist who can say that number aloud with a straight face deserves an Oscar.
I get why the government lies, it’s to stop a panic, AND save money on CoLR increases for social security. What I don’t get is why learned men and women aren’t pointing out the tricks and warning everyone.