Inflation

Inflation is a big item in the news for a number of reasons, one of which, is that most adults today do not remember the late 70's and early 80's. During the mortgage crisis of 2008 the press reported it was the worst recession since the Great Depression but this was not true. The recession of 1980 saw interest rates of 21%, 13% inflation and unemployment at 10%. The fed raised interest rates to 20% to bring down inflation and it worked and inflation stayed close to 3% for almost 40 years. Inflation is now running at 3.5% but it will rise over the next few years as the country is reshoring much of its industrial base. The economy will be growing rapidly and inflation along with it. As the new facilities incorporate the latest technology the productivity will increase and in the long run offset the inflation but there will be rough sailing for a few years.