While I was looking for something else at the econblog Zerohedge I stumbled cross this genuinely wry post which asks two questions. If inflation is so low:
- Why do the costs of the Federal Reserve cafeteria rise at a multiple of the notional rate of inflation?
- Why are wages at the Federal reserve rising at a multiple of the notional rate of inflation? (and faster than cafeteria prices are)
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There are graphs, of course.
In all seriousness, I suspect it’s because they’re measuring different things. That having been said, I think that while for the Fed we may be in a period of low inflation most people are experiencing things as a period of stagnant wages and moderate inflation. They’re either falling behind or barely able to keep up.
Pay at the Fed should be going up faster than inflation. They’re working their asses off to make certain the rich get richer and the poor get poorer, and they’re doing a bang up job of it. They’re doing the best job of any toadies anywhere, ever. Merit pay and bonuses for everyone!