In many ways, this is an indictment of Keynesian economics, most of which is about speeding up the economy by expanding the money supply and credit to boost wages. But none of that is guarantee of happiness if it leads to much higher rates of inflation. In fact, maybe its’s the opposite. Take a look at Japan. The country has been dealing with mostly deflation or disinflation for 30 years, and it has a generally peaceful and productive society.
Most low-income households would say the faster economy we currently have is not superior to what we had before and would be willing to trade higher unemployment for lower inflation. Is the Federal Reserve listening?
Jared Dillian is the editor and publisher of the Daily Dirtnap. An investment strategist at Mauldin Economics, he is author of All the Evil of This World. He may have a stake in the areas he writes about.