This month's economic indicators are a bit like that. They're meant to mess with your head. That's because the economy continues defying the logic of the Federal Reserve, which continues to raise rates to try and trim inflation. With the Prime Rate at 7.75% and likely to continue to go up, traditional economics would tell you to expect a slowdown.
On this day in 2011, the pop band Maroon 5 released one of the best tribute songs ever made, “Moves Like Jagger.” The song, fused throughout with disco and electro-synth beats, is about a guy trying to impress a girl by comparing his dance moves with those of Mick Jagger. This month’s economic indicators are a little like that—trying to convince you they can dance. Yes, unemployment is still low, and gross sales nearly hit $1 billion in one month in Rapid City. And average weekly wages are still above $900 a week.
But everyone knows the real story.
This month’s economic indicators are a little like that—clothed and looking back. That’s because things are getting a little retro. No, we're not talking about the grunge era, but rather the disco era, the late 1970s, when inflation (stagflation, as the kids used to say) was heating up at the rate of 7% to 13% annually.