The Worst Inflation in 44 Years - Michael Busler #5371

<p><strong>Summary:</strong><br /> As we roll into the new year, we’re curious to see the economic results from 2021. Here to talk about how these may look as well as some predictions for 2022 is Michael Busler, a professor of finance at Stockton University. We’ll probably see an economic growth of about 5.5% with the unemployment rate down 4%. The downside, however, will be inflation, since prices went up about 7.5% in 2021. The Fed thinks that inflation is largely influenced by supply chain disruptions, but Busler talks about 4 other major factors that contribute immensely. You won’t want to miss these key points, so tune in for more.</p> <p><strong>Highlights:</strong><br /> -Busler is a professor of finance over at Stockton University in New Jersey<br /> -The final numbers will likely show the economic growth of 5.5%, which is good, and the unemployment rate will be down around 4%. On the bad side is the inflation rate, which is likely to show that prices went up about 7.5% in 2021, which is the worst inflation we’ve had since 1980<br /> -We’ll probably see about 4.5% growth this year. Unemployment will probably stay pretty constant. The major problem at hand is definitely inflation, and we’ll probably be looking at 8%<br /> -The Fed thinks inflation will go away on its own around the middle of this year because they claim inflation is caused by supply chain disruptions. Busler believes that the supply chain isn’t significantly contributing to inflation<br /> -Last July, the economy was operating the same as it was before the pandemic</p> <p><strong>The real causes of inflation:</strong><br /> -The Biden administration has declared war on fossil fuels; there are higher energy prices<br /> -A large portion of the population is not returning to the workforce; 3.6 million have left and are not returning. To bring people back to work, we’ve had to raise wages significantly<br /> -The federal government has been $6 trillion more than they’ve brought in in tax revenue in the last two years<br /> -The federal reserv