Everything Is Going Up Because the Dollar Is Going Down
14th May 2021
If you have not yet reached forty years of age, you had not until this last month experienced the rate of consumer price increases Americans experienced in April. We have to journey all the way back to 1981 for that. How, with the labor force participation rate so low and so many jobs unfilled, can the prices of everything–including wages–be rising? Stagflation isn’t supposed to happen, especially not with so much supposed slack in the labor market!
That’s what happens when the Fed prints money as if it were toilet paper and the government spends it as if it were water.