for the rapid recent increase in inflation, from the COVID-19 pandemic, the scarcity of workers and semiconductor shortage to spiking oil prices and the Russian invasion of Ukraine.
Economist Christopher Thornberg takes the unconventional view that the federal government's massive financial response to the steep but short-lived recession sparked by lockdowns from the COVID-19 pandemic is what has really driven up prices the past two years."The fiscal and monetary reactions were, and continue to be, excessive," said Thornberg, founding partner at Beacon Economics in Los Angeles."The economy is overheating.
The problem, however, is that politicians and other policymakers in Washington, D.C., are reluctant to make tough decisions, especially if their actions might cost them their jobs.Drawing parallels between the current inflationary environment and that of the 1970s, Thornberg noted that Jimmy Carter nominated Paul Volcker as Fed chairman, and Volcker succeeded in wringing out most inflation.
His warnings about debt, deficits, higher interest rates and inflation don't reflect a consensus among economists. In many ways, his is a contrarian opinion.argued that the recent inflationary spike largely resulted from Russia's invasion of Ukraine.
How about taxing the very rich so they unload all those second and third houses? Would lower housing prices, rents and let young people move out of their parents' house.