The “Economic Boom” Illusion

The “Economic Boom” Illusion

Share to Linkedin LOS ANGELES, CALIFORNIA - APRIL 22: A man wearing a mask walks past a "now hiring" sign on Melrose ... [+] Avenue amid the coronavirus pandemic on April 22, 2021 in Los Angeles, California. Los Angeles County moved into Covid-19 orange tier restrictions on April 5 allowing increased capacity at restaurants, movie theaters and museums. (Photo by Alexi Rosenfeld/Getty Images) Upbeat data continues to make headlines. (The not-so-upbeat are relegated to the back pages.) This week it was the +6. 4% spurt in real GDP. And, while the financial markets do feel a bit toppy, the S&P 500 still managed to eke out another record close on Thursday, April 29 (4211. 47). "Help Wanted" signs continue to be ubiquitous. Companies are raising wages just to attract applicants. The prices of lumber and other commodities are skyrocketing (did the sun stop shining and trees stop growing?) "Oh my! The awful 1970s inflation must have returned!" Really! Does anybody remember the price of oil at $140/bbl. in 2008? Did we get 1970s style inflation from that? Why the Fed Lowered Rates September 2019 wasn't all that long ago, although it seems like we've lived years and years with pandemic