Costly Ignorance

Source: Cato Institute
by Ryan Bourne

“‘Greedflation.’ ‘Shrinkflation.’ ‘Junk fees.’ ‘Price gouging.’ ‘Monopoly power.’ Barely a week goes by without President Biden or some other politician slamming companies for the prices they charge. It’s not surprising. We’ve just experienced the first major burst of inflation since the early 1980s. American families are angry that grocery prices rose 21 percent in three years after January 2021, as interest rates for new mortgages and auto loans have surged. Politicians and central bankers have every incentive to blame external forces or greedy businesses, rather than their own macroeconomic stimulus, for these consequences of inflation. Depressingly, the buck‐​passing is working.” (05/08/24)