Nanny nanny boo boo

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  1. Over the past 12 months inflation increased by 5.7%.
    The Consumer Price Index (CPI) by 6.8%. (Wage and Social Security increases are pegged to the CPI.)
    Consumer spending was up 12%.
    Personal income rose 6%.

    The last time inflation was above 5.7% for a full year was 39 years ago when it was 5.8% for the year. (From 1982 to 2008 the inflation rate stood steady at 2%.)

    39 years ago, Ronald Reagan was the president (1982).
    Reagan’s stated economic policy was to drive inflation to 0%.
    His policy was based on a crazy Capitalist tax theory cooked up by the crackpot Art Laffer.
    The “Laffer Curve” was rooted in Milton Friedman’s theory of wiping out the middle class for the good of the country (see Chile, 1975).

    Reagan began the deconstruction of the middle class (Freidman) and Bill Clinton (NAFTA) and George the Second (2% inflation rate per year) finished the job.

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