Taps Coogan – June 18th, 2021

Enjoy The Sounding Line? Click here to subscribe.

The following chart, from Calculated Risk via the American Bankruptcy Institute, shows US household net worth relative to GDP.

Household wealth has surged by roughly 100% of GDP since the Covid pandemic started. If this is what a recession looks like, we’d better start worrying about the recovery.

Also, if inflation is transitory, presumably this massive increase in wealth relative to the supply of goods and services in the economy (GDP) must be transitory too, right? Or are we pretending that it’s a base effect too?

Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.