united-states-mint
Washington, D.C.American Principles Project, a Washington-based policy organization, on Tuesday released a new paper by Marc A. Miles, Ph.D., that challenges the claim by the Federal Reserve that inflation is low.

Over the two-year period ending in December 2012, prices for the major consumer spending categories of apparel, food and beverage, transportation, and medical care all widely outpaced the government’s official inflation rate. This is because, as Dr. Miles found, the Consumer Price Index gives approximately equal weighting to housing costs and the other major categories. It explains why even though the reported inflation rate is around 2%, voters in the 2012 election exit polls listed rising prices nearly tied with unemployment as their primary economic concern.

“This paper rebuts the Fed’s notion that it can continue to print money and keep prices from rising substantially,” American Principles Project president Frank Cannon said. “The best way for politicians to connect with what voters are complaining about is to talk about how to we can end a monetary policy that robs people of their purchasing power.”

Dr. Miles, president of Global Economic Solutions and co-author with fellow economist Arthur Laffer, also found that the Fed’s zero interest rate policy is hurting the recovery by channeling investment toward capital rather than labor. “The persistent, extremely low interest rates are keeping real wages from climbing and retarding the rate of hiring. The Federal Reserve is making unemployment worse than it has to be,” noted Dr. Miles.

You can read the paper below.  American Principles Project has been working to educate lawmakers about the need for monetary policy reform to restore the gold standard.

 

It’s Inflation Stupid

Photo credit: Holly Brown Ford via Flickr (CC-By-SA 2.0)

You May Also Like

Glenn Beck Is Wrong, Changing The Definition of Marriage is a Threat to America

Glenn Beck was on the O’Reilly Factor a couple of days ago…

Speaker Paul Ryan: A Few Perpetrators of Evil Do Not Represent Us

Speaker Paul Ryan encouraged Americans to take a moment for reflection and prayer after the shooting of 12 police officers in Dallas that left five dead.

Medical Care in 2018: Ring Out the Broken Promises and Bring In Solutions

Dr. Marilyn Singleton: ObamaCare’s individual mandate is dead. It’s time to use our healthcare dollars wisely and pay for the medical care, not the middlemen.

Christians Should Avoid the Hoffa Distortion Like the Plague

Those of us on the right soil our own reputations when we…