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by simonh 1929 days ago
It's making a very specific argument on a single subject, the contention that we are likely to see runaway consumer price inflation in the coming years. The article says this is wrong and explains why. I think it makes a very strong case for this. I don't happen to agree with the author's conclusion that therefore government should embark on a massive programme of capital infrastructure spending and such, but the rest of it is well argued. Economics is complicated so it's an extensive argument.
2 comments
boyband6666 1929 days ago
So I've a degree and masters in economics, before heading down the more statistical route. I can't say I found it compelling, and some of the issues waved away were too alarming for my liking.

The asset price inflation that's happening, and as a result the crazy investments (Softbank style) in search of some return are worrying. These are storing up problems for the future. I don't find the 'return to gold and it'll all be fine' any more compelling. I don't much care for the politics side, and advocating for no vs tons of spending seems to gloss over the very real problems with each approach.

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imtringued 1929 days ago
Infrastructure spending would put an end to QE and the increasing wealth inequality.
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boyband6666 1929 days ago
Potentially; infrastructure is quite a broad term, and some sectors of the economy are pretty maxed out. Spend it on telecomms, and how much would flow overseas?

I'm in the UK and we're increasing spending on 5G, but lots just goes elsewhere. Our constrution sector has limited capacity, and has less now we have EU staff leaving (and not arriving), so any extra spending will just lead to price inflation (and wages for already well paid people). Actually getting new people (and companies) in to these sectors is hard, not as sexy, and as a result doesn't seem to happen.

The US may be different, but there are few really easy answers in economics. Almost everything has second order effects that you might not like! That said, having been to the US a lot, there is a lot of infrastructure that does need attention...

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