The Fed’s New Band-Aid: “Just Pay People More” Federal Reserve Chair Jerome Powell claims that higher real wages are the key to fixing America’s cost-of-living crisis. The idea sounds simple—if everything costs more, just give people fatter paychecks. But this is economic fantasy masquerading as policy. Behind the press conference optimism lies a dismal reality: real wage growth has stalled, job creation has sputtered, and Americans still reel from the inflation shock of the last few years. The Fed’s proposed solution is to cut interest rates to spark hiring and wage growth. Supposedly, if businesses can borrow more cheaply, they’ll hire more workers and pay them more. Everyone wins—on paper. But wage inflation without productivity growth is just a smokescreen.…
Continue reading as a Citizen
Dedollarize News is free to read for signed-up members. Become a Citizen to finish this article, save what matters, and get the weekly briefing.
No credit card required. Cancel any time.
