Can inflation actually be fixed? Is there any hope? Or will prices just gradually keep increasing?
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From 2010 to 2020, we had an average inflation rate of 1.73%. That’s very low. Inflation at that rate is pretty healthy for the economy.
In 2021 the inflation rate jumped to 7%. In 2022 it was 6.5%. These numbers are pretty high, especially compared to what we’ve had the last 30 years. It’s not as bad as it was in the 1970s, which was a really tough time economically. Inflation peaked in 1980 at 13.55%, which is crazy.
Dump trillions of dollars of government cash into the economy and this is what happens. Now arguably, that might have been the best available option due to COVID. But if you want prices to stabilize and quit going up, you’ve gotta go back to pre-COVID economic policies.
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