I am in favor of increasing labor's share of income. My point is, in order to increase labour's share of income, the money supply has to be held relatively con

I am in favor of increasing labor's share of income. My point is, in order to increase labour's share of income, the money supply has to be held relatively constant in order to avoid inflation. In an environment like we have, where capital is basically free, when labor becomes scarce, firms with access to the infinite money supply can just raise wages ad infinitum and this is what creates the problem. The capital supply is not properly controlled by market forces currently. If it were, increasing labor's share of profits would be resolved without inflation. So my overall point is that we are seeing issues with inflation because of the intersection of Quantitative Easing and real-world scarcity. QE hasn't led to inflation before, because most of the new capital created just ended up in paper assets like securities. So if the fed prints 10 trillion dollars, and most of it just ends up on the balance sheet of some investment banks, it's not going to affect the price of a loaf of bread. But if the money supply is increased indiscriminately and it also gets into the hands of people who are competing for the same used car, this is what causes issues with the value of the currency.