Imagine a frog in boiling water: it jumps out instantly. But if the heat rises slowly, it stays until it’s too late. Economist Anne O. Krueger warns the U.S. economy might be in a similar slow-cook crisis, caught between inflation and sneaky policy interventions. 🔥
While inflation grabs headlines and forces quick fixes, targeted measures like tariffs, subsidies, and price controls are quietly distorting markets. Think steel tariffs raising car costs 🌇 or solar-panel import taxes clashing with green goals. These policies create long-term inefficiencies but fly under the radar—no loud public outcry, just simmering damage.
President Biden’s Inflation Reduction Act (IRA) pours funds into chips and EVs 🚗⚡, but critics say it’s adding fuel to the fire. Meanwhile, drug price caps 💊 risk shortages and stifle innovation. Unlike inflation, these moves face little pushback—even when they raise costs for everyday consumers.
Krueger argues this ‘industrial policy’ approach weakens growth while avoiding accountability. Will the U.S. jump out before it’s too late? Or keep turning up the heat? 🌡️
