It’s the economy, stupid!

Amazingly, a Harvard professor who gets it.

Back in March, the president of the New York Federal Reserve, William Dudley, was trying to explain to the citizens of Queens, N.Y., why they had no cause to worry about inflation. Dudley, a former chief economist at Goldman Sachs, put it this way: “Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful. You have to look at the prices of all things.” Quick as a flash came a voice from the audience: “I can’t eat an iPad.”

[…]

To ordinary Americans, however, it’s not the online price of an iPad that matters; it’s prices of food on the shelf and gasoline at the pump. These, after all, are the costs they encounter most frequently. And with average gas prices hitting $3.88 a gallon last week, filling up is now twice as painful as when President Obama took office.

More importantly, the prices of food and gas are the costs ordinary Americans can’t avoid. With rare exception, no one has to buy an iPad – it’s a luxury item. Food and gas are necessities, that most Americans simply cannot do without and must buy for themselves.

Go read the whole thing. It hits on several points many of us in the blogosphere have been saying for a while now.

END OF LINE

[Source: The Daily Beast article on Yahoo! News, retreived 5/2/11]

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