After Thursday’s mild inflation report, I listened to two rocket scientists discussing it on TV. They rattled on about how inflation is a tax on consumers, especially poor consumers, because their dollar doesn’t buy as much. (yada . . . yade . . . yada) They cited some study (that I never heard of) that “snacks” cost 34% more now than they cost in 2019. My head exploded . . .

So many things have impacted prices since 2019 – Remember the pandemic? – Remember the huge government stimulus? – Remember the supply crisis? – Remember the inflation hangover from the 1980’s? – etc. – etc. – etc.

One rocket scientist said to the other that the President should drive prices back to the 2019 level, and the other quickly agreed . . . Yeah, he said! They were also dumb rocket scientists!

There’s a world of difference between stopping inflation and reversing inflation. We can roll back prices to the Depression level in 1933, if we must . . . if you have many decades of patience and don’t mind a massive increase in the unemployment rate, say up to a whopping 40-50% – which would be far worse than the Great Depression. Give me enough time and enough unemployment, and I’ll restore those old-time prices for you.

A horrible recession is easy to start, but so is DE-flation! The problem with deflation is that consumers will expect prices will be lower tomorrow and see no reason to buy anything today if things will be cheaper tomorrow. Current sales will plummet! It is much harder to get out of DE-flation than IN-flation. So, why do we beg for price rollbacks?

Research is unclear whether DE-flation in prices also causes DE-flation in wages, which further dampens demand and sales. My suspicion is that – of course it does, but not at first and then quite rapidly. I don’t want to ever witness that!

Even rocket scientists should be careful what they wish for . . .