The View From 1776
Thursday, July 08, 2010
The economy will start to revive if Obama stops verbally bashing business and threatening higher taxes and ever more stringent regulation . Inflation will follow. Price increases not reflected in the Fed’s core inflation index already are at dangerously high levels.
Read Daniel Fisher’s article on the Forbes website: Where Inflation Lurks.
While the Fed keeps the yield on overnight loans at 0% and investors price ten-year Treasury bonds as if prices will barely budge over the coming decade, inflation is lurking in many corners of the economy—like shipping, which accounts for 7% of gross domestic product.
Another inflation trigger: employer health care costs. They were expected to rise 7% this year, according to benefits consultants Towers Watson. But that was the number before ObamaCare, which will require employers to cover dependents until they’re 26 and eliminates lifetime caps on reimbursement…
Regulatory costs overall are rising at an inflation-adjusted 9% a year, estimates W. Mark Crain of Lafayette College, a former Office of Management & Budget official who helps compile regulatory cost estimates for the Small Business Administration.