Will The Medicine Be Worse Than The Sickness?
“Inflation isn’t new. This man made disaster has bedeviled civilizations at least since Ancient Rome.” –Steve Forbes
It’s tough to argue we’re in a recession right now. Recessions don’t include more than 500,000 jobs growth in latest monthly reading that came out last Friday. More than 3.3 million jobs have been added in the first seven months of this year. In January 2020, the unemployment rate was 3.5%. It shot up to 14.7% during the onset of the pandemic and is now back to 3.5%.
The big problem right now is inflation. The question is will the Fed’s raising interest rates to battle inflation cause a recession in the future? That’s the unknown. Will the medicine be worse than the sickness?Check out this short 5 minute video that Steve Forbes did for Prager University that does a nice job of explaining what inflation is and why it’s so dangerous: What Is Inflation?