Federal Reserve Running Money Printing Press in High Gear
By A Mystery Man Writer
Imagine an arsonist blaming you for the blaze he started at your house. Sound far-fetched? Well, that’s essentially what happened recently when a member of the Federal Reserve blamed workers’ pay increases for causing inflation. The Fed has the correlation correct but not the causation. It’s true that wages tend to rise quickly in periods of high inflation, but it’s not the wage increases that ignite the fire. Rather, the central bank’s money creation causes prices everywhere to rise, including the price of labor—i.e., wages.
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