Front page of the WSJ today. Economists are worried that long term inflation will be the new norm. Why?
1) Government has become used to spending record amounts to pump up the economy.
2) High fuel costs and environmental policies have made energy more expensive and less dependable. Yet nations are making the world more dependent on the grid by banning internal combustion vehicles in favor of electric.
3) For the above reasons, production levels are falling but more money keeps being added to the economy.
Inflation=too few goods being chased by too many dollars.
Thomas Sowell: There are no solutions, just trade-offs.
