I wanted to expand on Jarome Powell’s comment that “wages are to high and that’s why we have inflation” comment.
https://mronline.org/2022/05/26/u-s-federal-reserve-says-its-goal-is-to-get-wages-down/
Either he is incompetent or he’s trying to agree with the Biden Administration by claiming it’s the companies faults that inflation is at an all time high.
Obviously the pandemic has hurt the availability of goods, which has caused prices to increase. But inflation has gone beyond that cost and is continuing to grow. Jarome Powell only has the power to lower or raise interest rates. By raising interest rates, this hurts the lending market. What does the lending market allow you to buy? A house, a car, It allows businesses to buy equipment or more property or office space. Stopping a business from growing does indirectly impact their ability to hire people. Which would stop wages from going up. But that doesn’t fix all the open jobs that already exist.
The other approach to fixing high availability of jobs, is to fill those jobs. How do you fill jobs if there isn’t enough workers? Illegal immigration. This floods the market with people, workers. Allowing the jobs to get filled. The downside to this is that the middle class will not get that pay raise to match inflation. In fact companies may pay less for employees because there are so many workers available to fill the jobs. This only aims to increase GDP. Increased GDP means an increase in tax revenue. More people, more taxes being paid.
None of this directly addresses high food prices and high gas prices. Why does gas price matter? It effects the price of everything you buy. How does the food get from the farm to the super market? By truck or plane or boat. Trucks, Planes, and boats use gas. If the cost of shipping something doubles because gas prices have doubled then the cost of the item will double. What is the Biden administration doing about gas prices? Well, they hate the oil and gas industry. So they are doing everything in their power to destory those companies.
As Josh Hawley points out:
https://dailycaller.com/2022/05/19/sen-josh-hawley-energy-secretary-grahholm-putin-gas-prices/
And how Biden himself says it’s the agenda of the Biden Administration to push alternative engery sources through ESG regulations, ESG regulations that hurt gas prices:
https://www.forbes.com/sites/davidblackmon/2022/05/24/biden-says-the-quiet-part-about-the-energy-transition-out-loud/?sh=2cfa43b53060
So high wages are fixed by flooding the market with illegal immigrants which does nothing to fix inflation but it does increase tax revenue for the government. And while increasing interest rates does keep businesses from growing, it does nothing to lower prices. It only aimes to hurt the entire economy, hence the crashing stock market. But the one thing that would actually fix high prices, is the one thing they are actively make worse. And that’s high gas prices.
So Jerome Powell is either an idiot or he’s playing politics and blaming whomever the Democrats want blamed.