How do you account for the fact that even if the incomes of the poorest Americans grew by 20%, the cost of essential goods and services may have increased at an even higher rate, negating the perceived benefits of that income growth and still leaving them financially strained?
[814057]
He specifically doesn’t account for that, even after mentioning it. Wage growth isn’t an inflationary metric when it is outpaced by currency debasement
“At different times in our history a varying set of simple indicators seemed successfully to summarize the state of monetary policy and its relationship to the economy. Thus, during the decades of the 1970s and 1980s, trends in money supply, first M1, then M2, were useful guides.”
“Unfortunately, money supply trends veered off path several years ago as a useful summary of the overall economy.”
Greenspan, 1996
https://www.federalreserve.gov/boarddocs/speeches/1996/19961205.htm
Greenspan admitted what the fed one for decade, that they could not with any accuracy, perceive what the money supply was. So they really couldn’t discern how markets were behaving, if they were “irrationally exuberant” or not.
Inflation is a monetary phenomenon. It’s downstream of money creation, which hasn’t been functioning since 2008 when it broke.
Fed knew* for decades *
This isn’t even a direct argument to my comment, if you think this quote-note is a rebuttal then I’m assuming you didn’t even read it properly
