What Is the Proper Lesson From 2008?

Inflation is a wonderful slap in the face. This has brought inflation that we just observed changes everything. And I think it's going to be very hard for our friends on the left to recognize that fact. We don't have 20 million people free go put up solar panels because they're all driving trucks or doing something else. It turns out that supply limit of the economy that the best we can do was write pretty darn close to where we were all along. Increasing supply, increasing the productive capacity of the economy is where all of economic policy must be right now.