Richard Bell: Beware of Zimbabwe-style inflation | TheUnion.com
YOUR AD HERE »

Richard Bell: Beware of Zimbabwe-style inflation

Beware of Zimbabwe-style inflation

I should have paid more attention in my college economics class because today’s economic news has me completely baffled.

Nine years ago, conservative economists, including recent Fed nominee Stephen Moore, were calling for deep budget cuts and increased interest rates to combat double digit unemployment and the worst economic crisis since the Depression. All that spending would surely result in Zimbabwe-style inflation. Conservative senator Orrin Hatch lamented, “Trillion dollar deficits as far as the eye can see.”

Fast forward to 2019 — in the midst of what the president and his supporters have labeled the greatest economy ever — and Stephen Moore and the same conservatives are now calling for increased spending (especially military) and steep interest rate cuts from the Fed.

Even more confounding, the Fed chairman appointed by the president is now an enemy. Seems I need to renew my economic studies. In “alternate economics” anyway where alternate facts may shed light where there is now none. Because, well, with low unemployment and tax cuts that were supposed to pay for themselves, there are still trillion dollar deficits as far as the eye can see.

Can Zimbabwe-style inflation be that far behind?

Richard W. Bell

Grass Valley


Support Local Journalism


Support Local Journalism

Readers around Grass Valley and Nevada County make The Union’s work possible. Your financial contribution supports our efforts to deliver quality, locally relevant journalism.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Your donation will help us continue to cover COVID-19 and our other vital local news.

For tax deductible donations, click here.
 

Connect with needs and opportunities from

Get immediate access to organizations and people in our area that need your help or can provide help during the Coronavirus crisis.


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User