Quote:
Originally Posted by scottw
but he goes on to say that the inflation we're seeing is lagging from 12-18 months ago....
"Inflation is a lagging indicator," he said about the current inflation levels, which he added are a reflection of 12 to 18 months ago when the global economy was recovering from a weak period of growth caused by a supply-drive oil war"
....the tax cuts just went into effect recently....how are they(tax cuts) causing everything to cost more if things are costing more due to lagging inflation cause by something 12-18 months ago?
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You are right, he probably should have said 2019. Though he doesn't claim it is causing inflation now, as you state. In any case, Jim is talking about people have more money now (he use words like "in their pocket; take home wages.") The point is that the tax cuts may cause wage increases immediately (though they haven't very much) and then they may lead to inflation. The result might be everything costs more and people haven't made enough to off set the cost.