Treasury Secretary Yellen Admits To Being Wrong About Severity of Inflation - NBC News

[TexasTowelie]

Last edited Wed Jun 1, 2022, 09:19 PM - Edit history (1)

[xocetaceans]

1. And yet Larry Summers still thinks he's correct...

Deflating Larry Summers
Today on TAP: Once again, he doesn’t check his facts and gets inflation wrong.
by Robert Kuttner
June 1, 2022

Larry Summers is at it again, misstating the connection between wage growth and price inflation. In an extended interview quoted in Tuesday’s Washington Post, Summers said, “I don’t think there’s a durable reduction in inflation without a meaningful reduction in wage growth.”

But Summers evidently failed to check the actual numbers. The estimable Josh Bivens of EPI did. As Bivens reported in a recent piece, wages have been lagging well behind inflation, not driving it. Bivens is worth quoting in detail:

To date, the rise of inflation has unambiguously not been driven by tight labor markets pushing up wages.

Nominal wage growth has … lagged far behind inflation, meaning that labor costs are dampening—not amplifying—price pressures. Last week’s jobs report showed that average hourly earnings growth over the last quarter was 4.4% (at an annualized rate), with wage growth actually slowing in the last three months to under 4%.
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https://prospect.org/blogs-and-newsletters/tap/deflating-larry-summers/

[Rhiannon12866]

2. Gas prices jumped again today here in New York

But diesel is down.