The pandemic-fueled effects on bank accounts to which Peter refers, the WSJ article anyway, has nothing to do with folks getting handouts. The savings rate increased substantially because, for two years, folks had many fewer ways to spend their money. This pent-up demand is a major cause of demand-side inflation. Also, I agree whole-heartedly with the premise of the article, that is, inflation is baked into the public's thinking. Inflation will subside in the coming months and prices (generally) may come down a bit but will largely remain in today's ranges. The exception will be energy prices in the short term. In the long term energy supplies will normalize and prices will trend downward. Wages will soon approach equalization and life will go on much the same as it always has.
For folks such as most on this board inflation has little effect on our standard of living. Sure, the cost of diesel gives some pause but most of us just pay the price and keep on cruising just as we always have. Neither will a recession affect us much.
