Inflation’s Hidden Cost
Why is inflation bad? At face value the question is insipid—inflation is bad because it means things are getting more expensive. The widespread use of the phrase “cost-of-living crisis” is revealing—people feel unable to afford even the essentials of life amidst rising prices. When basic items like food, energy, housing, and cars are in shortage their prices rise and people rightly feel worse off. chart Today’s economy has far, far more than its fair share of shortages—but it is also true that inflation is relatively broad-based. The share of items with increasing prices is large, and the number of
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