A couple of months ago, there were dire predictions of runaway inflation. As the economy started to heat up in April and May, prices surged and fed fears that inflation would erode the value of the dollar and ultimately mean your paycheck would be able to buy less. The alarms about inflation have been muted over the first half of the summer, however.
You don't think government spending 1.5 to 5 trillion dollars could add inflationary pressure? Just wage inflation alone could have a substantial impact when the feds insist on union labor wages and benefit packages.
That is some welcome and much needed good news, especially given what’s been happening with our foreign policy problems in Afghanistan and domestic problems with COVID-19. While we aren’t fully out of the woods yet, I’m cautiously optimistic that this won’t be a redux of the 1970s. I also think that with the infrastructure bill likely to be passed into law, that it will be less likely that the 3.5 trillion dollar spending boondoggle will pass. Instead, we need to have serious voices(which excludes MTG, AOC, Omar, Gaetz, Boebert, and Cori Bush) in Congress to really get some much needed fiscal discipline for the long term.