Summary: Inflation makes voters angrier than unemployment because it reduces their purchasing power and affects a larger number of people. The inflation of 2021-22 severely hurt Americans’ real wages, leading to widespread dissatisfaction. This dissatisfaction can significantly impact elections, as seen in past political shifts linked to inflation concerns.
People care about inflation more than about unemployment (View Highlight)
in general, the harms of inflation are diffuse while the harms of unemployment are concentrated. (View Highlight)
if unemployment harms 10 million people a lot, and inflation harms 200 million people by a moderate amount, it’s clear that inflation will directly harm a much larger number of voters. (View Highlight)