Dude. The economy is not healthy if artificially spiked prices don't correct. If they get high and stay high, you just got stuck in the artificially inflated state. Correction is a part of market health.
When oil prices spike, the market eventually corrects and they return to their previous projected path. They don't spike to $5/gallon then everyone throws up their hands and says "whelp, this is the new normal", but that's what's happening here. Taint healthy.
Agreed, but there is a level of objectivity. Gas prices go up and down, but across time are following a predictably rising trend. Same with a 2x4. I watch them go from a buck apiece, then a slow rise to $2.50 over a generation, then briefly $10 during the pandemic, then drop back to their natural $3.
When the rest of the economy follows the normal correction pattern, I'll agree that it is healthy. Till then, it's still in the ICU.
If you want to keep your economy going, you must normalize higher prices. Or, you can give the federal reserve the ability to raise VAT like taxes on the general population, pay off government debt, and quite literally, destroying money.
Repeating what I said back in early 2016 about the possibility of a Trump administration, a rise of the national debt above 20 trillion dollars - larger than the economy at the time - and the desperate need for future inflation to support such debt levels.
Workers earn money. (Work and money have an intimate relationship.) Part of the money workers spend and a small port they save. This small part saved winds up being loaned out to others for business expansions, construction of houses, industrial inventory purchases, bridges, schools, hospitals built by government.
At the time, state and local government had $10 trillion in debt, Federal at $20 trillion in debt, consumers at $30 trillion in debt, and $40 trillion to businesses - for a total of $100 trillion.
When Trump went in the government debt expanded way faster than the economy did, which meant that other sectors of the economy had to stop borrowing money so the government could borrow. Fewer people bought houses, businesses cut back on employment, consumers cut back on purchases, but the extra government spending papered over that decline.
Covid hit, people panicked, the government borrowed a lot of money providing small stimulus checks, and the federal reserve printed up new money to cover that debt. Afterwords, businesses stunned by the loss of employees went on a hiring bing and raised wages paying for it through price increases funded by the new money. (The economy grew to about thirty trillion dollars following the government debt. But since amount of production of goods didn't change all that much, the price per unit went up.)
When Trump gets in he will ignite a borrowing binge again. But now that the government debt has almost reached 40 trillion dollars, it will cause sharp decline in employment next year. The federal reserve following its stable employment mandate will respond slowly and print up money to get the economy moving again igniting inflation probably doubling prices in eight years.