Comments by "" (@timogul) on "Yahoo Finance"
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@noahmartin3057 Well look, the current inflationary spike has nothing to do with the fed. It's much worse in other countries, that the Fed have no influence over. The Fed is doing what they can to get inflation back down to reasonable levels. Too much inflation is definitely bad, everyone agrees on that, including the Fed, and rich people. But most economists agree that some inflation is good, 1-2%, because that means that if you just hoard money under the mattress, it loses value, and thing swill only get more expensive later, so you should probably buy things now.
It keeps the economy moving at a steady pace. If your dollar could buy twice as much tomorrow as it does today, then why spend it today? That leads to economic stagnation, where nobody is buying, so nobody is selling, so nobody is producing, so nobody has jobs.
So the "value of the dollar" is lower than it used to be, and it always will be, unless things go terribly wrong. But this does not matter. All that actually matters is that the value of an hour of work remains steady or improving, and that has nothing to do with the Fed, it has to do with business. The value of an American worker's labor has never had anything at all to do with actions of the Fed, it has had to do with policies that allowed businesses to shift money from workers to management and shareholders.
And as for two-worker households, that again had nothing to do with the Fed, that had to do with women entering the workforce. When you have twice as many employees, the value of labor goes down. This is inevitable. I don't know why anyone would think the Fed has any say in the matter.
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