All true. But widely ignored (though captured in some of the graphics) is something very important pointed out in a recent paper from Larry Summers. Somewhere along the road, I forget when, the government dropped interest paid on mortgages, car loans, and credit card debt from the CPI. There were technically valid reasons for doing this, but when rates got from circa zero to 7+ almost instantly, it shows up in people's experience of the economy. And of course just because prices go up less this month people are not going to magically forget that prices are up 20+% from four years ago.
All true. But widely ignored (though captured in some of the graphics) is something very important pointed out in a recent paper from Larry Summers. Somewhere along the road, I forget when, the government dropped interest paid on mortgages, car loans, and credit card debt from the CPI. There were technically valid reasons for doing this, but when rates got from circa zero to 7+ almost instantly, it shows up in people's experience of the economy. And of course just because prices go up less this month people are not going to magically forget that prices are up 20+% from four years ago.
Great. Maybe the administration needs Robert de Niro as its economic spokesman. Jim Dueholm
Introduced by Luca Brasi.
Wait, prices ARE raising, just not as fast as before. It's not like the CPI has been zero or negative any month.
So, once again, the writers are out to lunch