Commodity driven inflation absolutely can pose major problems, but it is usually wage inflation that feeds into any out-of-control inflation spiral. Thus, keep the following in mind when thinking about whether inflation will be a major issue over the near term horizon.The "following" was a chart of the change in compensation over the past decade. In response, reader Boatman commented:
in the largest inflationary period in US in modern times wages were flat (78-82). i was there. tomorrows problem is todays opportunity. this is gold buying time,find the bottom & pull the trigger.Memories are a funny thing because that is just not true. Inflation fed through wages until Volcker stamped it out by dramatically raising short-term interest rates.
That said, I personally think gold can (and will) go higher, but for different reasons (see here and here).
Source: BLS
0 Response to "More on Wage Inflation"
Post a Comment