The David Lin Report Economist Warns Prices Soar, Jobs Disappear In 2026 | Steve Hanke
Dec 25, 2025
Steve Hanke, a seasoned Professor of Applied Economics at Johns Hopkins University, dives deep into the economic landscape for 2026. He discusses the concept of money illusion, explaining how perceptions of affordability have shifted since COVID. Hanke predicts persistent inflation and rising unemployment, while highlighting the growing median age for first-time homebuyers. He also critiques the Fed’s monetary policies, linking them to increasing inequality and rising asset prices. Lastly, he shares eye-opening insights on Venezuela’s hyperinflation and its broader regional effects.
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Inflation + Unemployment Will Worsen Inequality
- Inflation and rising unemployment in 2026 will widen wealth gaps and hurt those below median income.
- Steve Hanke says monetary policy was non-neutral and benefited asset owners at the expense of lower-income people.
Money Illusion Fuels Affordability Anger
- Money illusion makes people focus on sticker prices instead of real income changes.
- Hanke warns this fuels affordability anger and makes political messaging difficult for leaders like Trump.
Three Jobs Funded An Apartment Purchase
- Steve Hanke recounts working three (actually four) jobs while studying and saving aggressively.
- He used those savings and a banker connection to buy a 24-unit apartment right after college.