Chart of the Day: Inflation Is Out of Control!

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The BLS reported today that inflation is now running wildly out of control! It jumped from 1.1 percent in April to….1.4 percent in May. Obviously this means we need more austerity.

Or so the wise men and the conservative shills, allied as usual when it comes to monetary and fiscal policy, will tell us. Matt Yglesias provides the antidote:

If we had 2.3 percent core inflation and 2.6 percent headline inflation, then there’d be a real reason to tighten monetary policy. Given the high unemployment rate, there’d also be a reason to resist that pressure to tighten. But we’re not 0.3 percentage points above the inflation target, we’re 0.3 percentage points below the inflation target [he’s talking here about core inflation, which came in at 1.7 percent in May]. Even if the unemployment rate were dramatically lower, tighter money would still be perverse.

With joblessness high and inflation low, the right policy is clear—easier money, not tighter.

Someday inflation will be persistently above 2 percent. At that point, we can all argue about whether that’s the right target and whether we need to take action to get back under it. But that day is not today. Right now, we’ve been under our inflation target consistently for the entire past year. It’s not something to worry about. Unemployment is.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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