The Answer Is Investment
Today’s consumer price numbers reflect enduring pandemic disruptions and continuing supply shortages.
That’s why we need a balanced approach to inflation, Roosevelt Chief Economist Joseph Stiglitz argues.
“Yes, the US has slightly higher inflation than Europe; but it also has enjoyed stronger growth. US policies prevented a massive increase in poverty that might have occurred otherwise,” Stiglitz writes. “Recognizing that the cost of doing too little would be huge, US policymakers did the right thing.”
What policymakers should be doing now: “targeted structural and fiscal policies aimed at unblocking supply bottlenecks and helping people confront today's reality.”
“The solution to the inflation we see is targeted, sustained investment,” Roosevelt’s Lauren Melodia tweeted. “More investments in COVID and public health, renewable energy sources, and child and elder care.”
Read more inflation analysis from Stiglitz.
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