The Case for Inflation

Automatic TRANSCRIPT

For today's show. In addition. We spoke to two economists. They talked about their fears of inflation in the long term in the medium-term and right now and we will start with right now. Komo srikumar runs a macro economic consultancy. Three kumar global strategies. And when we spoke to him he had just got home from vacation road trip from new york to california. Restaurants are packed. Even middle of restaurants are all back to a big surge in demand for everything you could not have in the last year. Did he find it hard to book a hotel on a road trip. Yup yup hard to book up. The prices have doubled or tripled the room that you would have two months ago. Double or triple for a hotel room during. I hope you've booked your summer vacation accommodations yourself. I have not anyway. Apparently that is the situation right now. And the number. Seeing the consumer price index the index that tracks prices across the country and inflation. Does back that up. We as a country are undergoing a post vaccine price bump at least in the short term. But where this gets. More controversial is the medium-term with high inflation will persist and criticizing free childcare and free community college and all that stuff wrapped into biden six trillion dollar budget plan. It's not necessarily when you friends not popular views. That is correct. Would you like us to put you under witness protection to do we give you a pseudonym. I hope you don't have to do that. But let me say this. You cannot popular at all times. You have to say a number of things which are unpopular connel's popular argument is this. He says look at history. Look at what happened. In the nineteen seventies we have not seen both government spending and a central bank so willing to stimulate the economy by so much since the seventies like that six trillion dollar budget by president biden and the fed also saying it will keep interest rates really low for a long

Coming up next