No, higher wages are not a ‘silver lining’ of inflation
August 11, 2021
As of May 2021, prices increased 5% over the course of one year – the sharpest increase in inflation since 2008. Inflation poses a palpable threat to the economic prosperity of America. Its prevalence is perpetuated by political institutions, corporations, and personal opinions. Big corporations and moguls will not necessarily suffer through significant change with a 5% increase in prices, the common citizen is more likely to be presented with financial hardships in their daily purchases.
Guest Peter Jacobsen, Assistant Professor of Economics at Ottawa University and the Gwartney Professor of Economic Education as well as a staff member at the Foundation for Economic Education, sits down with Director of Communications, Eric Kohn, to discuss the problems inflation proposes to America’s economic processes. In this episode, Peter Jacobsen also speaks further on his newest article, “No, Higher Wages are Not a ‘Silver Lining’ of Inflation,” and the false notions that the general public has on inflationary trends.
Understanding the escalation inflation undergoes due to COVID policies, the Federal Reserve’s reaction, and modern monetary theorists is timely and necessary in pinpointing solutions. The U.S. economy is in a difficult economic position, but by presently understanding the potential threat inflation poses, necessary steps can be taken to ensure a sound economic future.