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Honesty Would Have Been the Best Policy on Inflation

By John Gustavsson

Honesty Would Have Been the Best Policy on Inflation

That was a great time to be a consumer. The gig economy let us order cheap private taxis, and we could go to the movies as often as we wanted for $9.99 per month. Or we could stay home, have a cheap taxi bring us burritos, and watch all the movies and TV shows we wanted for $9.99 a month on Netflix.

Then, it all went away. The cheap Ubers and streaming services were never going to last, because these companies were barely if at all profitable, using artificially low prices to rapidly gain market share. But the coronavirus pandemic led to disrupted supply chains and stimulus checks that combined to drive up inflation, which in turn saw the low interest rates on borrowing that had fueled so much of the economic growth of the 2010s disappear, as central banks around the world raised rates to keep prices stable. Consumers don't understand why the good times had to end, but many of them associate those good times with Trump, and, much like a cargo cult building landing strips out of sticks and hay in the hopes that the magical metal birds will bring them more supplies, they hope that by reelecting Trump, they can get those low rates and prices back.

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