You don’t have to be an economist in order to understand inflation. In fact, in many ways it helps not to be an economist to understand it. If you’re an economist, you have a theory about inflation. Theories breed explanations. The trouble is, explanations are just as likely to explain away what they purport to explain as they are to bring us closer to understanding them. For a proof of this I refer you to President Biden’s Press Secretary Jen Psaki, who recently informed us that inflation was a good thing because it meant that more people are buying things. She actually said this. Nor is she an outlier in the Biden administration. A few months ago, the dominant narrative was that inflation was “transitory,” therefore that it was no big deal. Then Jerome Powell, Chairman of the Federal Reserve admitted in November that it was a good time to …
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