College students of the moment happily can’t contemplate what used to be true: the phone bill used to create discomfort. Furman continues to promote the fiction that the path to lower prices is “widespread layoffs.” Reality mocks what he imagines. To then pretend that the saver will blithely hand over funds to a borrower without adjusting the borrowing rate to reflect inflation is quite something. Indeed, if we ignore just how ludicrous it is for him to assume the Fed is necessary to stimulate investment in a country populated with the world’s most talented people, we can’t ignore his assertion that the higher prices allegedly born of inflation stimulate investment. Crucial about these very real advances is that they run very counter to how Furman imagines the world works.

Source: Forbes August 28, 2023 00:31 UTC