Nixon’s Inflation Dance Easy As 1-2-3 For Biden To Avoid?

Hilsenrath’s WSJ op ed suggests today’s scary inflation numbers are “Echoes of the Wage-Price Spiral of the 1970s.” While a Nixon-era recession is not fated, paper’s editors also warn the current inflation rate isn’t “transitory” & it’s time for Fed to raise rates before it’s too late.

Noted the guest columnist: “The US economy started 2022 by sending a disturbing signal from the past: Consumer prices and household paychecks soared in lockstep, conjuring memories of a 1970s-style wage-price spiral. Back then, the spiral dragged on for years, until the Federal Reserve stamped it out with high interest rates that drove down inflation and pushed the economy into recession.” While he quickly adds “a lot still has to go wrong [today] to keep the dance going,” one might note how the Fed is painfully dragging its feet in raising interest rates a quarter of a point let alone a “put your foot down” 1, 2, 3 point.

Not coincidentally, a separate op ed by the WSJ’s editorial board titled, “Inflation Haunts the Biden Economy,” argues “an historic policy failure [aka pumping way to much cash into the economy to counter the Covid pandemic fall out] calls for a sharp turn at the Fed & White House.” Yet, Slow Joe shows no sign of “transforming” his fiscal policy as fast as he’s trying to “transform” American society along radical progressive lines. Arthur Murray where are you when Joe needs you?

Davd Soul