There is troublingly high inflation. But other indicators paint a much more favorable picture. If inflation can be brought down without a severe recession \u2014 which seems like a real possibility \u2014 future historians will consider economic policy in the face of the pandemic a remarkable success story.<\/p>\n\n\n\n
So how does the current economy compare with the eve of the pandemic?<\/p>\n\n\n\n
First, we\u2019ve had a more or less complete recovery in jobs and production. The unemployment rate, at 3.5 percent, is right back where it was before the virus struck. So is the percentage of prime-age adults employed. Gross domestic product is close to what the Congressional Budget Office was projecting prepandemic.<\/p>\n\n\n\n
This good news shouldn\u2019t be taken for granted. In the early months of the pandemic, there were many predictions that it would lead to \u201cscarring,\u201d persistent damage to jobs and growth. The sluggish recovery from the 2007-9 recession was still fresh in economists\u2019 memories. So the speed with which we\u2019ve returned to full employment is remarkable, so much so that we might dub it the Great Recovery.<\/p>\n\n\n\n
Still, while workers may have jobs again, hasn\u2019t their purchasing power taken a big hit from inflation? The answer may surprise you.<\/p>\n\n\n\n
In September, consumer prices were 15 percent higher than they were on the eve of the pandemic. However, average wages were up by 14 percent, almost matching inflation. Wages of nonsupervisory workers, who make up more than 80 percent of the work force, were up 16 percent. So there wasn\u2019t a large hit to real wages overall, although gas and food \u2014 which aren\u2019t much affected by policy, but matter a lot to people\u2019s lives \u2014 did become less affordable.<\/p>\n\n\n\n
More important, some Americans are especially exposed to prices that have gone up a lot. On average, however, there hasn\u2019t been a huge hit to living standards.<\/p>\n\n\n\n
But won\u2019t bringing inflation down require an ugly recession? Maybe, and widespread predictions of recession may be taking a toll on public perceptions. But they are predictions, not an established fact \u2014 and many economists don\u2019t agree with those predictions.<\/p>\n\n\n\n
Resource: NYT<\/p>\n\n\n\n
Manager\u2019s Office Team\u00a0<\/strong><\/p>","protected":false},"excerpt":{"rendered":" There is troublingly high inflation. But other indicators paint a much more favorable picture. If inflation can be brought down…<\/p>","protected":false},"author":3,"featured_media":11727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":""},"categories":[189,153],"tags":[],"yoast_head":"\n