Inflation Has Outpaced Wage Growth. Now It’s Cutting into Spending
It must!<p>For obvious, numerous reasons we are producing less stuff now than before, so we have less available to consume.<p>Prices must outpace wages, or we get empty shelves, or we can ration. But we MUST consume less on average.<p>We could talk about taking from the rich, but actually the rich don’t consume all that much in aggregate, so that doesn’t help much (wealth and income don’t matter for this purpose, only consumption).