The Inflation Myth

Economic Policy Today

The typical American is struggling.

Whether you’re struggling to find a job, struggling to make ends meet, or struggling to find a better opportunity, there is one huge lie that your government wants you to believe: inflation is a great thing for the American economy.

According to the Federal Reserve website,

The Federal Open Market Committee (FOMC) judges that inflation at the rate of 2 percent (as measured by the annual change in the price index for personal consumption expenditures, or PCE) is most consistent over the longer run with the Federal Reserve’s mandate for price stability and maximum employment.

To summarize, they believe that rising inflation leads to “price stability” and “maximum employment”. But shouldn’t prices be set by the market? After all, the Federal Reserve caused the 2008 financial crisis by keeping interest rates too low, which encouraged banks to make loans that they knew could never…

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