this post was submitted on 14 Jun 2023
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Remember the 70s had oil embargoes. Cost of almost anything is linked to petroleum. Interest rates got very high before it was over. Yes I was there.
So this detail in the article is bullshit?
And what about technological advancement?
Technology. I guess it depends on how competitive the market is. Monopolies are bad for price and most tech is patent protected.
In this last round of inflation we had high oil and other resource prices plus labor shortages and dislocations. Add on a lot of pent up demand and also not a lot of competition. None of this is very good for prices. On the other hand now inflation is under 2% in some locations though the national average is higher.
The article makes the point, that 70s and current high inflation have different causes. In particular US debt is much higher today, so that higher rates could eventually contribute to inflation.