Volcker recalibrated US economy



December 11, 2019 - 9:47 AM

Ever stop to contemplate how different life was before computers and smartphones? How inefficient and complicated those days seemed? Here’s another thankfully distant memory: high inflation.

Back in the 1970s that paycheck you earned began to dissolve in your fingers the moment you received it because prices constantly rose. Maybe you got a pay raise, but all it did was keep you from slipping backward. Anyone on a fixed income really suffered. For that reason, high inflation was called the cruelest tax.

Americans don’t worry about the scourge of high inflation anymore, which is a wonderful aspect of the current strong economy. If you want a job, you probably can find one (unemployment is at a 50-year low). Wages are rising at about 3% a year — and better yet, with inflation at just 1.6%, your buying power and standard of living are improving.

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