The Booming Economy vs. Debt and Deficit Fears

Source: CounterPunch
by Dean Baker

“With the rapid growth we are now seeing across most sectors in the economy, many have raised concerns about inflation. We did see high inflation numbers in April. There are two main factors here. First, much of this is a bounce back effect, where the price of many items that plunged during the recession is now rebounding back to more normal levels. … The other factor is that there are shortages in many areas as the economy is again getting up to steam. … Both of these effects will be temporary. If we are to see sustained inflation then we really need a story where wage growth is substantially outpacing productivity growth.” [editor’s note: Inflation is an increase in the money supply vs. available goods and services. Establishment economists try to shift blame for inflation from the actual cause (Fed monetary policy) to the effects – TLK] (06/02/21)