Inflation

Most people under the age of 50 have not experienced inflation. Inflation has been around 3% and has not posed a problem. The low inflation was there in spite of the fact that the deficit kept rising and this was explained by increasing productivity which was the result of the computer. This past year productivity declined by 5% and the deficit increased dramatically and this was the beginning of the end of low inflation. Productivity decreased 5.2% in the third quarter of 2021, the US Bureau of Labor Statistics reported today, as output increased 1.8% and the hours worked increased 7.4%. This is the largest decline in quarterly productivity since the second quarter of 1960.