Just over a year ago, the US economy faced its worst downturn on record as businesses shuttered and the nation hunkered down in the face of the pandemic. Economic activity ground to a halt
last spring and then rebounded
over the summer.
This rebound is ongoing, but we’re not quite back to normal. For example, the size of the economy was nearly $19.1 trillion at the end of March
, some $166 billion lower than it was
at the end of 2019, before the pandemic hit. America is also still down more than 8 million jobs compared with February 2020.
That’s all good news. So why are some experts worried?
In a word: inflation.
Pandemic price woes
The pandemic has thrown prices for goods and services for a loop. People stopped spending money on a host of things, including traveling and dining out, as soon as the lockdowns started.
Prices in those categories plummeted while the costs of other goods skyrocketed.