Steve Rattner, an investor serving as a guest on MSNBC’s Morning Joe, argued that inflation isn’t so bad and Americans should get used to it because a lower cost of living is “kind of a bad thing.”
Rattner told hosts Joe Scarborough and Mika Brzezinski that yes, the economy “did have a lot of inflation” which “did raise food prices to a permanent level.”
He then offered up this entry to the Silver-Lining Hall of Fame.
“This comes as a shock to them, and they – some of them at least kind of expect prices to go back down again to where they were before,” he said of stubborn inflation rates. “That doesn’t happen.”
And lower prices? Stretching your dollar? Who needs that noise, Rattner contends.
“In fact, deflation is actually kind of a bad thing,” he stated.
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Who Needs A Lower Cost Of Living?
The folks over at Investopedia disagree with Rattner’s assessment that deflation, a general decline in prices for goods and services, is a bad thing.
They describe it, barring certain conditions, as “unambiguously a positive trend for the economy.”
“This general decrease in prices is a good thing because it gives consumers greater purchasing power,” they write. “To some degree, moderate drops in certain products, such as food or energy, even have some positive effect on increasing nominal consumer spending.”
Imagine that. Would your spending on other products increase if say, you could actually afford groceries and gas right now? I know mine would.
Deflation coincided with the arrival of the Industrial Revolution in the United States. Prices fell in the late 1800s because both production and productivity soared, and both workers and businesses could afford to keep demand strong.
Deflation increases the purchasing power of consumers, allowing them to buy more goods and services with the same amount of money. It can help reduce the burden of debt, as the real value of debt decreases over time, making it easier for individuals and businesses to pay off their loans.
Rattner believes we should just expect stuff to cost more for no reason all the time. He also ran solid defense for President Joe Biden’s role in creating the inflation problem, noting that the average American simply doesn’t understand these economic complexities.
“People just have no experience with this, and they’re trying to wrap their minds around it and they’re taking it out on President Biden, which is not entirely fair at all,” he said.
Thank You Biden, May I Have Another?
Since Biden took office, the average family has lost over $19,800 paying for the increased cost of living. That is absurd and devastating to families. Here’s the money Americans have lost by paying higher prices:
- Energy costs: $3,737
- Food costs: $2,647
- Shelter costs: $3,133
- Transportation costs: $7,405
A recent report by Intuit Credit Karma shows that 96% of Americans “are concerned about the current state of the economy.”
Yet Rattner has reassured us all. But then, the media has consistently defended President Biden’s economy for the affluent by telling us poor folk to accept it and adjust to this new norm of higher prices.
The Wall Street Journal earlier this year provided consumers with money-saving tips for those struggling to cope, advising them to skip breakfast.
You know – The most important meal of the day.
President Biden seemingly concurred, advising Americans that they just might have to suffer a bit by buying the generic Raisin Bran cereal.
Bloomberg News came to Biden’s defense last year, telling Americans to suck it up and switch their diets from meat to vegetables. Let them eat lentils!
Now, Steve Rattener is trying to convince you simpletons that, should prices actually come down to a more manageable level, you’re not going to like it.
Because it’s “kind of a bad thing.” Much like everything else in the Biden economy, I’m not buying it.
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