Metaculus Help: Spread the word
If you like Metaculus, tell your friends! Share this question via Facebook, Twitter, or Reddit.
What will inflation be in the US in 2021?
In 2020, the United States of America was hit by a disease outbreak causing many locales to issue lockdowns. These lockdowns have meant that many people have been unable to go to work, causing an increase in the unemployment rate, as well as stopping people from going to many shops.
The sudden shutdown of enormous sectors of the U.S. and global economy clearly constitute a massive short-run fall in Aggregate Supply. While Aggregate Demand is going to fall too, this time Aggregate Supply fell first... If AS [Aggregate Supply] falls a lot and AD [Aggregate Demand] falls a little, in contrast, we should expect a return of stagflation – high unemployment and high inflation simultaneously. The same holds if AS falls enormously and AD “only” falls a lot... The upshot: Though I’m not ready to bet on it, I fear that in 2021 we will see not only high unemployment but high inflation as well. (Complication: Official statistics may classify disemployed workers as “out of the labor force” because they’re too scared to hunt for a job). At this point, I would not be surprised by 10% unemployment and 6% inflation for 2021...
How bad will the inflation be?... [T]he public outcry against even high single-digit inflation will be deafening. Historically, governments have a standard response to such outcries: economy-wide price controls. Richard Nixon imposed them in 1971 when inflation was only 4.4% and restaurants were open. If and when the government does impose price controls, the textbook tells us what to expect: Ever-growing shortages, rationing, black markets, and anti-business witch-hunts.
In this question, we test one aspect of this fear:
By what percentage will the CPI increase in 2021?
The question will resolve based on CPI-U data released by the US Bureau of Labor Statistics data as of February 1st 2022. The resolution will be the percentage change of CPI-U from December 2020 to December 2021.
Other questions testing aspects of Caplan's post:
Metaculus help: Predicting
Predictions are the heart of Metaculus. Predicting is how you contribute to the wisdom of the crowd, and how you earn points and build up your personal Metaculus track record.
The basics of predicting are very simple: move the slider to best match the likelihood of the outcome, and click predict. You can predict as often as you want, and you're encouraged to change your mind when new information becomes available.
The displayed score is split into current points and total points. Current points show how much your prediction is worth now, whereas total points show the combined worth of all of your predictions over the lifetime of the question. The scoring details are available on the FAQ.
Note: this question resolved before its original close time. All of your predictions came after the resolution, so you did not gain (or lose) any points for it.
Note: this question resolved before its original close time. You earned points up until the question resolution, but not afterwards.
This question is not yet open for predictions.
Metaculus help: Community Stats
Use the community stats to get a better sense of the community consensus (or lack thereof) for this question. Sometimes people have wildly different ideas about the likely outcomes, and sometimes people are in close agreement. There are even times when the community seems very certain of uncertainty, like when everyone agrees that event is only 50% likely to happen.
When you make a prediction, check the community stats to see where you land. If your prediction is an outlier, might there be something you're overlooking that others have seen? Or do you have special insight that others are lacking? Either way, it might be a good idea to join the discussion in the comments.
Embed this question
You can use the below code snippet to embed this question on your own webpage. Feel free to change the height and width to suit your needs.