Skip to main content


Did We Overstimulate The Economy? Maybe

May 26, 2021

As the US economy continues its recovery from COVID-19, retail sales have jumped to 15% above pre-recession levels. But that consumption comes at a cost, stirring inflation for gas, food, and building materials. And amid those rising fears and the reality of considerable labor shortages and wage inflation, one question persists: could we have overstimulated the economy?

“Maybe we did,” says John Chang, senior vice president and director of research services at Marcus & Millichap. “But that’s probably a lot better than understimulating it and waiting years for a recovery.”

But, there’s a caveat, according to Chang:  “the Fed, Congress, and the President will probably have to ease off the throttle a little bit so the situation doesn’t spiral out of control,” he says.

Read the Full Article
MM Texture Background