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Richard Holden

Why people really hate inflation, but politicians don’t get it

Prices are about 15 per cent higher than when the Albanese government was elected. People just hate that. The more interesting question is, why?

Richard HoldenEconomics professor

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Joe Biden and now Kamala Harris seem constantly puzzled that voters don’t realise America’s economy is in great shape.

Growth is stronger than other advanced economies, inflation is coming down, unemployment is under 4 per cent and real wages have been increasing. Yet consumer sentiment has been lower than any time since the Great Recession. Even Paul Krugman is perplexed – and he has a Nobel Prize in economics.

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Richard Holden is Scientia Professor of Economics at UNSW Business School. Connect with Richard on Twitter.

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