A dollar a day was the typical wage when the railroads were being built. Today the minimum wage is $58 per day with discussions to raise it to $120. According Milton Friedman, this is the result, not the cause, of inflation. Dr. Friedman researched inflation back to the Romans and concluded the reason for inflation is the government printing of money. He referred to inflation as “taxation without representation.”
The resent 9% inflation spike experienced in June of 2022 is permanent. There are no plans to deflate or reduce that 9% going forward. There appears to be only plans attempting to reduce, but not eliminate, budget deficits in the future. Budget deficits cause more printing of money, and therefore continued inflation. The projected 2024 deficit is $1.8 trillion, which is 26% of the entire proposed federal budget.
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