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September 23, 2014

The Mysteries of Inequality Are Only Mysterious to Elites

We have the central bank of the US acting deliberately to keep workers from getting pay increases. They justify their actions over concerns about inflation, but we need not take these seriously. Who knows what they believe, but the real-world risk of a dangerous inflationary spiral ranks alongside the risk of attacks by Martians. It ain't going to happen, and they should know this. Of course high unemployment is not the only policy that has kept wages down over the last three decades. Government policy has also made it almost impossible for workers to organize unions. And of course we have let the minimum wage fall way behind the cost of living and even further behind productivity.

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