The reality about inflation is getting coated up by numerous myths spewed by companies and their political lackeys.
Listed below are the info:
Reality #1: Inflation isn’t being pushed by wage will increase
Though wages have been rising, they have been rising extra SLOWLY than costs. Hourly wages grew by 5 % up to now 12 months—however costs rose 8.6 %. This implies, whenever you alter for inflation, employees really received a 3.5 % pay reduce over the previous 12 months.
Reality #2: Company income are one of many major drivers of inflation
Companies are elevating costs above what’s wanted to cowl their increased prices. These mark-ups have soared. Companies are getting away with this worth gouging as a result of they face little to no competitors. And so they’re utilizing the specter of inflation as a canopy.
Final 12 months, companies raked of their highest income in 70 years. One current research discovered that over half the rise in costs we have been experiencing might be attributed to fatter company income.
Reality #3: Federal help to folks through the pandemic didn’t overheat the economic system
Most households—who have not had an actual wage enhance in years—used the help to pay down debt or save for the longer term. The help was barely sufficient to maintain working households afloat.
Reality #4: Inflation isn’t the results of President Biden’s or Democrats’ insurance policies
Republicans wish to blame them for rising costs. However Democrats have tried advancing payments to convey down costs and handle company worth gouging, but Republicans and a handful of company Democrats refuse to go them.
So do not fall for the company myths about inflation.
Larger costs aren’t being pushed by wage will increase. They weren’t pushed by federal help to folks through the pandemic. And Democrats aren’t guilty.
Inflation is being pushed largely by document company income. One of the best ways to battle it’s to take away company incentives to boost costs by means of a windfall income tax. And scale back monopoly energy by means of harder antitrust enforcement.
Know the reality.