Cynics often know the price of everything but the value of nothing. Remember how, just months ago, leading economic voices were predicting a catastrophic “Category 5 economic hurricane” this year? The astounding 2.4% GDP growth revealed this week with plunging inflation, historically low unemployment, and corporate profit reports soaring past expectations have knocked the wind out of the fact-free cynics. It’s been said that cynics sound smarter than optimists because of the facts they cite but, in this case, they have no facts.
Some economic experts like former Dallas Fed President Richard Fisher blamed high employment and wages for inflation. Minneapolis Fed President Neel Kashkari similarly insisted that as long as the unemployment rate remains at record lows, “we are not done yet, we need to bring the labor market back into balance.” Many echoed former Treasury Secretary Larry Summers’ ridiculous calls for 5% unemployment for five years or 10% unemployment for a year as a cure for inflation.
