The Trump administration isn't sweating inflation. And you know what? They're right not to.
The economy has been grinding away in a low-gear recovery ever since the Great Recession. After all these years, unemployment is finally back down to levels not seen since 2000. That's good! But it does cause many observers to worry about inflation — either because demand will go up (confident consumers with cash to burn will theoretically spend more, causing prices to spike) or because production will become more expensive (because a tight labor market means employers have to hike wages, causing prices to spike). And particularly after the GOP's massive deficit-increasing tax overhaul, and a recent budget deal that will increase spending by another $300 billion over the next two years, many veteran Democratic economic wonks worry that the economy is going to overheat, sparking major inflation.
The Trump team's response? Get lost, basically. "We're not worried about overheating in the economy," Gary Cohn, Trump's chief economic adviser, recently said.
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