Here's more good news on the inflation front:
Consumer spending was down slightly in February, which keeps it right on the pre-pandemic trendline. It's yet another indication that consumer demand isn't spiraling ever upward. On the contrary, it remains well anchored.
Given that Summers et al. are blaming inflation substantially on increasied consumer spending, isn't a graph of said spending adjusted for inflation a little ... misdirecting?
No. It's it's not adjusted for inflation, the graph would show...inflation.
If you want to show the underlying strength of consumer spending power, you indeed must adjust for inflation.
Sadly, we're apparently getting 7-10% less "stuff" with all that increased spending due to inflation.
On the other hand, nobody's ransacking the stores for bottled water, toilet paper, and beans, so there's that.
Not well anchored according to The NY Times…
A continued torrent of consumer demand, paired with an emerging atmosphere of normalcy as coronavirus caseloads and health restrictions fade away, led to a burst of new jobs last month, giving reason for optimism despite the year’s increasingly uncertain economic outlook.
A “torrent”!
Give me Kevin’s graph and a Sharpie; I’ll show you a torrent!