Rising wages are being blamed for inflation. The Wall Street Journal says the American Worker is in the drivers seat and is demanding higher pay. This is leading to more inflation. Keep in mind, it was corporate greed and profit-mongering only a year ago that was to blame for inflation. Prior to that, inflation was just transitory and prior to that it would only be two weeks to flatten the curve.
So we’ve gone from greedflation to wageflation and pivoted from blaming fat cats in the C suite to the hoi polloi factory foreman. Except, it’s not true. In fact, the Money Printer Potentates of the Federal Reserve published a boring scholarly article arguing the opposite. Blaming greedflation and wageflation for inflation is like blaming Pompei for Vesuvius. CEOs and corporations made money first, then downstream the American Worker needs to make some money to pay for the inflation. So who is upstream? The Federal Reserve.
The Cantillon effect basically states that those closest to the source of money creation are the first to profit. So Central Bankers and their banks profit first before all this new money has hit the economy.
Next up are the Wall Street insiders who understand biflation. What’s biflation? It’s where gas prices go up, but 10 year treasury values go down.
CEOS and corporations use this new money to expand and raise prices, thereby raising profits. But the expensive new products can’t be sold to poor people. So those poor people demand raises to keep up with the cost of living. And the Wall Street Journal is saying these poor people are CAUSING inflation. Ridiculous, according to the fed study and common sense.
Slavery was outlawed in the civilized world some time ago. You can’t force people to work for free. But you can have the work for money that decreases in buying power. That’s perfectly legal. And it’s happening to you. You work hard for your money. Harder than you think. If you’d like your money to work hard for you, click here.
Related: The Empty Skyscraper Index