Janet Yellen, the current Treasury Secretary, has a lot of skeletons in her closet. One of which is that she was the one who caused the inflation in the 80s. *Cue flashback music*
Just kidding, she didn’t do it. But she did place blame on something else during her time as Treasury Secretary…us! Yes, that’s right. It’s all our fault. We’re to blame for the 40-year-high inflation rate. Why? We’ve been spending too much money, apparently.
Yellen argued the administration managed the COVID-19 pandemic so well that consumers felt comfortable to “splurge” on goods.
“So we had a rapid recovery from the pandemic,” she said, arguing Biden’s policies brought unemployment down from 7% to 3.7%.
“It turned out the pandemic had very special impacts on the economy. Remember, everybody stopped spending on services,” she pointed out, as businesses were shut down. Instead, people spent more money on “grills,” “technology” and office equipment as they were working from home.
“They were in their homes for a year or more, they wanted to buy grills and office furniture, they were working from home, they suddenly started splurging on goods, buying technology,” she claimed, which led to supply chain “bottlenecks.”
So, what does this mean for us? Well, if you were planning on buying a house or a car anytime soon, you might want to hold off for a bit. Prices on these big-ticket items are only going to go up as inflation continues to rise. And if you’re thinking about selling your house or car? You might want to do it sooner rather than later! Either way, it’s important to be aware of how rising inflation rates can impact both buyers and sellers in the market.
It looks like we can all add “inflation” to the long list of things that are our fault. From the climate to the housing problem, it seems like there’s nothing we can’t screw up.