{"id":1624218,"date":"2022-08-27T14:18:54","date_gmt":"2022-08-27T18:18:54","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1624218"},"modified":"2022-08-27T14:19:47","modified_gmt":"2022-08-27T18:19:47","slug":"paul-krugman-claims-america-had-low-inflation-this-summer-what-planet-is-he-living-on","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/paul-krugman-claims-america-had-low-inflation-this-summer-what-planet-is-he-living-on\/","title":{"rendered":"Paul Krugman Claims America Had Low Inflation This Summer. What Planet Is He Living On?"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpaul-krugman-claims-america-had-low-inflation-this-summer-what-planet-is-he-living-on%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1624218&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Lost in the brouhaha over the announcement of <a href=\"https:\/\/www.dailywire.com\/topic\/joe-biden\" target=\"_blank\" rel=\"noopener\">Uncle Joe<\/a>\u2018s plan to cancel <a href=\"https:\/\/www.dailywire.com\/topic\/student-loans\" target=\"_blank\" rel=\"noopener\">student debt this<\/a> week was a puzzling claim from The New York Times columnist <a href=\"https:\/\/www.dailywire.com\/topic\/paul-krugman\" target=\"_blank\" rel=\"noopener\">Paul Krugman<\/a>.<\/p>\n<p>Krugman <a href=\"https:\/\/www.nytimes.com\/2022\/08\/23\/opinion\/inflation-prices-food-employment-policy.html\" target=\"_blank\" rel=\"noopener\">claimed<\/a> that inflation was low this summer, contrary to predictions of pain. His observations fly in the face of even a basic understanding of economics.<\/p>\n<p>\u201cNot long ago, many people were predicting a\u00a0long, hot summer of inflation,\u201d Krugman wrote.<\/p>\n<p>\u201cTo their surprise \u2014 and, for some Republicans, dismay \u2014 that isn\u2019t happening,\u201d the pundit proclaimed. \u201cOverall consumer prices were flat in July, and nowcasts \u2014 estimates based on preliminary data \u2014 suggest that inflation will remain low in August.\u201d<\/p>\n<p>It is true that regarding month-to-month inflation from June to July, there was zero overall inflation. Of course, what Krugman leaves out is that year-over-year inflation in July was at 8.5%.<\/p>\n<p>That is now the <a href=\"https:\/\/www.usinflationcalculator.com\/inflation\/current-inflation-rates\/#:~:text=The%20annual%20inflation%20rate%20for,at%208%3A30%20a.m.%20ET.\" target=\"_blank\" rel=\"noopener\">fifth straight month<\/a> with year-over-over inflation at 8% or higher. If that is considered low inflation, one would shudder to think of what Krugman considers \u201chigh inflation.\u201d<\/p>\n<p>He also pointed to evidence that \u201cbeef is <a title=\"\" href=\"https:\/\/archive.ph\/o\/3fved\/https:\/\/www.wsj.com\/articles\/your-steak-is-getting-cheaper-at-the-supermarket-11661160602?st=qpy97yybsieg0dv\" target=\"_blank\" rel=\"noopener noreferrer\">already getting cheaper<\/a>.\u201d Yet, high-end steak and other red meat is getting cheaper not because inflation is coming down, but because demand for such items are decreasing as shoppers search for cheaper options. As noted by the Robb Report, ground beef is increasing in price.<\/p>\n<p>\u201cOver the same four-week period ending August 7, ground-beef prices jumped about 7 percent compared with the same timeframe last year,\u201d The Robb Report\u2019s Tori Latham <a href=\"https:\/\/robbreport.com\/food-drink\/dining\/beef-price-decline-premium-steak-1234741794\/\" target=\"_blank\" rel=\"noopener\">wrote<\/a>. \u201c(In contrast, the price of ribeye and beef loin fell nearly 10 percent.)\u201d<\/p>\n<p>The purpose of Krugman\u2019s article was to consider if there was any economic plan that could slow inflation (which he claims is already slowing) and help the economy without involving any pain. He points to an interesting historical example out of Israel, where the nation crafted a \u201cpackage that included a temporary wage freeze and price ceilings\u201d in the 80s.<\/p>\n<p>Ultimately, Krugman concluded that \u201cthere don\u2019t seem to be any realistic alternatives\u201d to the Federal Reserve\u2019s plan of \u201creducing inflation by engineering a slowdown.\u201d<\/p>\n<p>Indeed, that is the same conclusion that Federal Reserve Chair Jerome Powell reached in Wyoming earlier this week.<\/p>\n<p>\u201cWhile higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,\u201d Powell <a href=\"https:\/\/www.dailywire.com\/news\/jerome-powell-vows-to-restore-price-stability-even-though-federal-reserve-must-first-bring-some-pain\" target=\"_blank\" rel=\"noopener\">said<\/a>. \u201cThese are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.\u201d<\/p>\n<p>Curiously enough, Krugman admitted last month that he was wrong about President Joe Biden\u2019s spending package and the impact it would have on inflation.<\/p>\n<p>\u201cSome warned that the package would be dangerously inflationary; others were fairly relaxed. I was Team Relaxed. As it turned out, of course, that was a very bad call,\u201d he wrote.<\/p>\n<p>He also stated that \u201cthe whole experience has been a lesson in humility.\u201d<\/p>\n<p>With his latest claims about inflation, it seems that lesson didn\u2019t quite stick.<\/p>\n<p><em>The views expressed in this piece are the author\u2019s own and do not necessarily represent those of The Daily Wire.<\/p>\n<p><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lost in the brouhaha over the announcement of Uncle Joe\u2018s plan to cancel student debt this week was a puzzling claim from The New York Times columnist Paul Krugman. Krugman claimed that inflation was low this summer, contrary to predictions of pain. His observations fly in the face of even a basic understanding of economics. &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1624220,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1624218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1624218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1624218"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1624218\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1624220"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1624218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1624218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1624218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}