Beware Economists Who Won’t Admit They Were Wrong. 2023 will go down in the record books as one of the best economic years ever. Economists who argued that the inflation surge was “transitory” got it right. Many economists who were wrongly pessimistic remain unwilling to accept the obvious.
by mafco
10 comments
Global inflation was indeed driven by pandemic-related supply shocks and Russia’s invasion of Ukraine, which spiked global energy prices. It has cooled on its own as those twin crises have eased. This seems obvious to everyone but those who would prefer to falsely blame inflation on the US president. They’ve been wrong about everything this year but partisans are still clinging to their bogus narratives.
In the meantime Biden’s fiscal and industrial policies helped drive stunning growth, strong business investment and consumer spending, and record low unemployment, defying the pessimists proclaiming an “imminent” economic crash this year. Now some of these pessimists are doubling down by moving the goalposts to 2024, rather than admitting they were wrong. Even Fed chair Powell has admitted that many misunderstood the nature of this round of inflation.
>Many economists who were wrongly pessimistic remain unwilling to accept the obvious.
Sadly, that seems to be the view of too many people who keep on saying the economy is bad … when consumer sentiment is over 60 …
Those people are in for a rude shock. If they think this economy is bad wait until we have two negative quarters of growth. Unemployment will skyrocket, and paying 20% more for milk will be the least of people’s issues.
Do you ever come up for air?
“Many economists who shorted the economy”
How many lies can you fit into one made up title?
10 Trillion dollars in new money is fueling the stock market. Not real demand.
Inflation may have slowed, but your pizza that used to be 10 bucks is still 20. The fact that the price isnt going up as much as before, doesnt mean it doesnt cost $20….
Best for who?
“Checks savings account….. Damn”
Paul Krugman.
I think a lot of people saw a soft landing as a return to 2019 prices. Transitory meant 2% would return, not that “disinflation” or deflation would occur.
An economy good for some but not for others.