Can We Have Growth Without Inflation?- by NEIL SISKIND

It’s being suggested that the world has changed in such ways that perhaps old economic formulas and theories may have changed.

Perhaps economic growth does not lead to wage growth, as it used to.

But can we have growth without growth?

If we don’t have growth in incomes, how do we get growth in spending? Has the world changed so much that “math” is not longer useful?

Businesses can not grow unless product-buying grows. Product-buying can not grow unless incomes grow.

Even if the Fed did not raise interest rates, or lowered them, growth is still impossible if incomes are not growing- regardless of interest rates. And the White House and Congress know this, which is why they cut taxes as a way to get income growth. But the Fed is raising rates at the same time- and gas prices are also rising.

So- can we have growth without inflation? No. There must be income growth to get earnings and economic growth. If we have wage growth, then we have inflation. If we fail to have income growth- we get recession.

Math still applies!


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