Re:US Federal Reserve says its goal is ‘to get wages down’
by arcticbull on Saturday May 28, 2022 @05:11PM
(#31543901)
> Fed inflation policy is, and always has been a substitute for pay cuts for laborers.
No, that's Congress' fault, not the Fed. The Fed only controls the denominator. Congress controls the numerator. Inflation-adjusted minimum wage and support for unions would significantly alter the landscape.
Inflation has benefits, too, and it is generally accepted that a low, fixed, predictable inflation rate is the optimal outcome. Generally all the worst periods in history have been deflationary, not inflationary.
No, that's Congress' fault, not the Fed. The Fed only controls the denominator. Congress controls the numerator. Inflation-adjusted minimum wage and support for unions would significantly alter the landscape.
Inflation has benefits, too, and it is generally accepted that a low, fixed, predictable inflation rate is the optimal outcome. Generally all the worst periods in history have been deflationary, not inflationary.