There is lots of discussion about “inflation” these days. Inflation here is taken to mean rising prices. Of course, we have seen the prices of lots of things rise at ridiculous amounts over the years. I’m thinking of things like health care and education, which have gone up dramatically compared to people’s average earnings.
The other part of the inflation equation is wages. This leads to the famous Wage Price Spiral. Of course, lots of wages have gone up quite a bit over the years. I’m thinking of CEO wage inflation here. Nobody has been concerned about that.
So to be more specific, the inflation fear being discussed is that the average American workers are going to make more money and this could increase prices for the things they want to buy. The solution? Raise interest rates, put people out of work and make sure wages stop rising. If you want to know why wages in the US, at least at the bottom end, stagnated for the last few decades you have to look no further than this Fed policy, championed by Libertarian stalwarts like Alan Greenspan. Robert Reich explains it better than I can.