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> Yes, inflation reduces purchasing power if you assume that wages don't track inflation, but historically they do. This is not only factually false, but if it

> Yes, inflation reduces purchasing power if you assume that wages don't track inflation, but historically they do. This is not only factually false, but if it were true it would invalidate the argument being made by the economists quoted in the NYTimes article. I strongly recommend that you read The Creature from Jekyll Island or other materials on the history of the Fed and its role in US monetary policy.

Mikeb85 13y ago
Come on, you only need to have been alive for the last 10 years to see wages go up. Minimum wage where I live is 80% higher today than 10 years ago. Average wages are much higher too, though by a lesser percentage. Here's an inflation adjusted chart of American wages, you'll see that wage increases have actually outpaced inflation slightly... http://en.wikipedia.org/wiki/File:Median_US_household_income.png http://en.wikipedia.org/wiki/File:Median_US_household_income... Edit - some more charts for you: http://www.advisorperspectives.com/dshort/updates/Household-Income-Distribution.php http://www.advisorperspectives.com/dshort/updates/Household-... Sorry, numbers don't lie.
- lake99 13y ago
  > Minimum wage where I live is 80% higher today than 10 years ago. Average wages are much higher too, though by a lesser percentage. The way they adjusted for inflation is suspect. [1] This [2] is how the wages look if you measure in amounts of gold. Of course, gold is not the end-all of monetary policy. But it's way more stable than the USD. [1] http://business.time.com/2013/03/12/if-theres-no-inflation-why-are-prices-up-so-much/ http://business.time.com/2013/03/12/if-theres-no-inflation-w... [2] http://pricedingold.com/us-wages/ http://pricedingold.com/us-wages/