Most economists and commentators now agree: a big reason for Vice President Kamala Harris’s defeat in Tuesday’s presidential election was high inflation delivering higher prices.
I agree that inflation was a major cause of Harris's defeat. All three lessons," however are incorrect. The Bidne administration had no role in causing or prevent inflation, employment or unemployment. [Milton Freidman was right 50 years ago why he said inflation is a result of monetary policy.]
The _Fed_ caused the inflation, some necessary to achieve recovery and strong growth, but it failed to start bringing it back down to target soon enough which in turn meant that the deacceleration took too long.
Yglesias's is good since not doing bad micro (like "pausing" LNG development) is always good.
Stephenson could also be useful. Lower deficits during a recession do not impede a rapid recovery as the Fed can always engineer enough inflation is it want to. But deficits closer to = Σ(expenditures with NPV>0) are good for long term growth.
I agree that inflation was a major cause of Harris's defeat. All three lessons," however are incorrect. The Bidne administration had no role in causing or prevent inflation, employment or unemployment. [Milton Freidman was right 50 years ago why he said inflation is a result of monetary policy.]
The _Fed_ caused the inflation, some necessary to achieve recovery and strong growth, but it failed to start bringing it back down to target soon enough which in turn meant that the deacceleration took too long.
Yglesias's is good since not doing bad micro (like "pausing" LNG development) is always good.
Stephenson could also be useful. Lower deficits during a recession do not impede a rapid recovery as the Fed can always engineer enough inflation is it want to. But deficits closer to = Σ(expenditures with NPV>0) are good for long term growth.