Author: Joseph E. Stiglitz Source: Project Syndicate Publication Date: 7 June 2021 Link: The Inflation Red Herring
Stephan: I got two emails today from MAGA readers -- yes, it appears I do have some -- asking me why I wasn't covering the inflation trend Biden was creating. That prompted me to turn to some sources that have proven over the years to be the most accurate and reliable. One is Nobel Laureate economist Joseph Stiglitz, and apparently, he has been thinking in-depth about inflation, and this is what he has to say. I support what President Biden is doing, and think Stiglitz is right about inflation because the administration's policies are designed to foster wellbeing, and that is always the best option producing the best social outcomes. Biden has the chance to become a historically significant president, like Franklin Roosevelt. He is the best-prepared president in generations.
As I take in the news each day I am struck by the fact that the fate of 333 million Americans is being harmed by one Democrat, Joe Manchin, and one party, the Republican, a total of 262 people blocking what Biden is proposing. Think about this, 0.000001% is controlling the 333,000,000. That makes it very clear, I think, how important is the selection of individuals making up the Congress. Yet look who actually gets elected. Once again I say the problem with America is Americans. In spite of all this, I still see the trend as moving towards wellbeing.
Nobel Laureate economist Joseph Stiglitz
Credit: Reuters/Edgard Garrido
NEW YORK – Slight increases in the rate of inflation in the United States and Europe have triggered financial-market anxieties. Has US President Joe Biden’s administration risked overheating the economy with its $1.9 trillion rescue package and plans for additional spending to invest in infrastructure, job creation, and bolstering American families?
Such concerns are premature, considering the deep uncertainty we still face. We have never before experienced a pandemic-induced downturn featuring a disproportionately steep service-sector recession, unprecedented increases in inequality, and soaring savings rates. No one even knows if or when COVID-19 will be contained in the advanced economies, let alone globally. While weighing the risks, we also must plan for all contingencies. In my view, the Biden administration has correctly determined that the risks of doing too little far outweigh the risks of doing too much.
Moreover, much of the current inflationary pressure stems from short-term supply-side bottlenecks, which are inevitable when restarting an economy that has been temporarily shut down. We don’t lack the global capacity to build cars or […]
What an excellent acknowledgement of the problem! What do you mean by best-prepared Stephan? I wish you to recognize your positive feedback and influence please!
Stephan Schwartz
on Friday, June 11, 2021 at 3:48 am
Alan — Thanks for the positive feedback, although I am not clear on what you are asking me. — Stephan
What an excellent acknowledgement of the problem! What do you mean by best-prepared Stephan? I wish you to recognize your positive feedback and influence please!
Alan — Thanks for the positive feedback, although I am not clear on what you are asking me. — Stephan