What Happened to Thrift and Frugality?

The piece argues that monetary policy still has far to go despite the Federal Reserve’s new chief, Kevin Warsh, raising the federal funds rate by a quarter point due to inflation remaining too high. It claims short-term real rates remain negative even after accounting for monetary depreciation, so rates would need to rise much more to matter quickly. The article also contends the U.S. economy has become structurally dependent on leverage, feeding a culture of spending. It points to crowded bars and restaurants, spending habits supported by weakening purchasing power, historically low personal savings near post-2008 lows, and high revolving credit-card debt. It adds that COVID-era stimulus flooded accounts, making prices less transparent through subscriptions, fees, and easy payments.