Inflation.
The Federal Reserve has two mandates: maximize employment by keeping unemployment at 4.5% or less, and keep prices stable by holding inflation at about 2% per year.
Using the rule of 72, shows that if inflation rises at a rate 2% per year it will take workers 36 years to double their wages.
That is unacceptable.
An inflation rate of between 4% and 5% per year would indicate that workers wages are increasing and are not stagnating as they have been since Ronald Reagan.
Inflation.
The Federal Reserve has two mandates: maximize employment by keeping unemployment at 4.5% or less, and keep prices stable by holding inflation at about 2% per year.
Using the rule of 72, shows that if inflation rises at a rate 2% per year it will take workers 36 years to double their wages.
That is unacceptable.
An inflation rate of between 4% and 5% per year would indicate that workers wages are increasing and are not stagnating as they have been since Ronald Reagan.