If you were born after 1975 or so, you may not know what real inflation is.
Today the idea of high inflation is poo-pooed. After all, inflation has been low for years, even massive government debt hasn’t triggered inflation. Modern Monetary Theorists don’t see a risk in the face of unlimited money creation and spending.
COVID stimulus checks to increase spending and GDP growth won’t generate inflation. (many are being saved or invested)
Advocates for a $15.00 minimum wage and the accompanying higher costs for small employers and those who want student loan forgiveness to free up money to spend don’t see a threat.
Proponents of higher corporate taxes don’t make a connection to higher prices and inflation.
Inflation has been less than 4% and mostly less than 3% for over thirty years. Why? Several explanations are given among them globalization, technology, low demand for goods and services, high unemployment levels. I don’t think anyone really knows and it is a combination of factors.
But could that change? Could stimulus, actually stimulate?