Hey, working people are allowed
to become rich
. It is just that the deck is always stacked so that they can never get better than a pair of 3s.
Inflation occurs predominantly under the following conditions. The workers demand and are granted a raise. Profitability goes down as expenses (wages) rise. The company raises prices for goods. Real money value decreases, and the workers demand more money wages to make up the loss in purchasing power.
The solution to inflation is two fold, the first being the most important, and neither likely to be implemented.
- Pass legislation preventing companies from raising prices. If prices are stable, then workers do not have to demand more money to maintain their real wage, and companies do not have to raise prices......
Now you ask what about rising import costs such as oil. Well as prices remain stable, the lack of inflation will increase the demand for that particular nations currency to purchase goods and securities from that nation, and will thus increase the relative value of the national currency in international trade. This will offset the short term increase in cost.
- The implementation of maximum wage legislation. This will provide a more even distribution of income and prevent a few CEOs and industrialists from stagnating economic growth for short term personal gain with multi-million dollar salaries while paying employees subsistence wages.