Inflation or Unemployment?

Hopefully this will be quick.  I was listening to Marketplace with Kai Rysdal (I've been listening to him so long I can spell his name) and he was interviewing Victoria Guida from Politico.  I keep hearing this same song and dance over and over so I could pick on anybody but I'll pick on Kai because I like him. (???)


"“So for a really long time, liberals, people on the left, when they talked about what they wanted to see in the economy, this was basically it,” said Victoria Guida, economics reporter at Politico. “But people don’t like higher prices.”"

That's just the teaser to get you to go listen.

This might be the economy that liberals wanted, but do most voters feel the same?

Off you go. Be sure to come back. I have two questions for you.

You probably just did your taxes recently. Did you make more money this year than last year? I did. A lot more. I like that kind of inflation.

But here's the big question: Did you have a job during COVID or immediately after? I didn't. But I was already retired and I know I have it made in the shade. I keep telling people I want them to have it as good as I do -- and how to get it -- but they can't figure out what my angle is (I don't have one) so they don't really believe me. But let me get back on track.

Unemployment has been at (or near) a record low for months. For several of those months, wage inflation (you, making more money) has beaten price inflation. I know it hasn't evened out for every single soul in America. I know all wage gains haven't beaten all inflation. But, on average, Americans are doing really well.

Have we forgotten the Great Recession back in 2008? You know, back when everybody lost their job for a really long time? We've had record low unemployment for months. Yes, we had a bad round of inflation but -- thanks to the kind of stimulus that Republicans would not let Obama have to fight the Great Recession -- you have had a job.

Would you have rather lost your job to keep inflation under control? I didn't think so. Both of my kids had to come home from college and live with us because they couldn't find a job during the Great Recession. (And I thank God we could afford it.) It hurt them. It hurt us. We know what the hurt looks like.


And unlike this time, the unemployment lasted for years. This time, it only lasted months (for those unfortunate enough to lose their jobs.) Years vs. months. Was that a fair trade for the inflation we suffered? I sure think so. I hope you do too -- after you think about it.

By the way, my 401k did really well last year too. I like that kind of "inflation" too.

Don Brown
February 29th, 2024