Dec. 10, 2024 |
‘It’s a series of unfortunate events.’ Two years ago, all Western countries were hit hard by inflation—topping 10 percent in much of Europe and 9 percent in the U.S. Stories about inflation dominated most news coverage of the American economy. They’ve since been replaced by a narrative emphasizing how U.S. inflation has fallen back below 3 percent, GDP has grown more than in other advanced economies, and the country has added new jobs for a record 46 months in a row.
Meanwhile, though, prices in America never settled back down. Today, food is on average 28 percent more expensive than it was five years ago, while homes are on average 47 percent more expensive than they were four years ago. How’d this happen?
Today, Peter Ganong looks at what’s driving up long-term costs in the U.S.—and how they’re complicating opportunities for so many Americans to better their lives.
—Michael Bluhm
