Some prices will probably fall, mainly commodity prices. Energy and food prices follow a rhythm where prices rise and then production increases to meet it, which ultimately drives prices down. There is an old saying in the commodity markets: "The cure for high prices is high prices." Relief is coming here.
Some prices will probably not fall, like housing which is a good thing. The last time housing prices fell en masse was 2008 and that was not a good time for anyone. Home prices are probably going to rise modestly for the foreseeable future, but the supply / demand situation isn't conducive to a meaningful nationwide price decline.
The most painless way to adjust to higher prices is wage inflation, and that is probably how the problem gets addressed. Trump's instincts to re-shore manufacturing jobs and limit immigration are going to be the most effective here. The left's policy of higher minimum wage laws, combined with increased immigration and welfare spending probably will not have the desired effect.
I was going to post the same thing about wage inflation being the only feasible solution. Whether they realize it or not, the general public's mindset is that inflation will be solved only when we return to 2019 cost of living levels. This is not possible without a massive depression.
We got worldwide inflation because all the nations of the world did the same thing at the same time. They printed money to stimulate their economies, thus creating the inflationary hangover. They also provoked social strife by doling it out to favored groups who got to spend it before prices went up. They also got to devalue all debts, including government debt, and this is what they will eventually do about their government debts. They will pay it off with printed money, which favors some groups over others, and so political life becomes even more divisive.
The federal government could cut its debt in half if it started to monetize the left-hand side of the balance sheet which includes $1 trillion in gold, the entire continental shelf, thousands of empty office buildings, one-third of Alaska and every state west of the Rockies.
How to stimulate long-term sustainable growth? Follow Argentina's example and abolish every federal regulation at once. The economy would explode. Yes, there would be lots of problems but they would be outweighed by the economic boom.
Some prices will probably fall, mainly commodity prices. Energy and food prices follow a rhythm where prices rise and then production increases to meet it, which ultimately drives prices down. There is an old saying in the commodity markets: "The cure for high prices is high prices." Relief is coming here.
Some prices will probably not fall, like housing which is a good thing. The last time housing prices fell en masse was 2008 and that was not a good time for anyone. Home prices are probably going to rise modestly for the foreseeable future, but the supply / demand situation isn't conducive to a meaningful nationwide price decline.
The most painless way to adjust to higher prices is wage inflation, and that is probably how the problem gets addressed. Trump's instincts to re-shore manufacturing jobs and limit immigration are going to be the most effective here. The left's policy of higher minimum wage laws, combined with increased immigration and welfare spending probably will not have the desired effect.
I was going to post the same thing about wage inflation being the only feasible solution. Whether they realize it or not, the general public's mindset is that inflation will be solved only when we return to 2019 cost of living levels. This is not possible without a massive depression.
Trump promised to cut inflation but what they heard was cut prices.
We got worldwide inflation because all the nations of the world did the same thing at the same time. They printed money to stimulate their economies, thus creating the inflationary hangover. They also provoked social strife by doling it out to favored groups who got to spend it before prices went up. They also got to devalue all debts, including government debt, and this is what they will eventually do about their government debts. They will pay it off with printed money, which favors some groups over others, and so political life becomes even more divisive.
The federal government could cut its debt in half if it started to monetize the left-hand side of the balance sheet which includes $1 trillion in gold, the entire continental shelf, thousands of empty office buildings, one-third of Alaska and every state west of the Rockies.
How to stimulate long-term sustainable growth? Follow Argentina's example and abolish every federal regulation at once. The economy would explode. Yes, there would be lots of problems but they would be outweighed by the economic boom.