Time for a lecture on basic economics, I’m afraid. WH Press Liar Psaki just defended inflation as a good thing. A reporter was grilling her on chief of staff Ron Klain blowing off inflation as a “high class problem.”
“The fact is the unemployment rate is about half what it was a year ago. So a year ago, people were in their homes. Ten percent of people were unemployed. Gas prices were low because nobody was driving. People weren’t buying goods because they didn’t have jobs. Now more people have jobs. More people are buying goods. That’s increasing the demand. That’s a good thing.”
Did you see what she did?
I suspect that a lot of people do think inflation is prices going up. But that’s just because prices are commonly used as a proxy to measure inflation. It’s a little more complicated than that, but not much. Let’s talk price. Continue reading Economics Lecture: Is Psaki an idiot, or just hoping we are?